In this article, we will take a look at the 14 High Yield Dividend Stocks with Sustainable Payouts.
Dividends have been doing a lot of the quiet work in investing for a long time. Anchor Capital points out that when you step back and look at markets over decades, their impact becomes much clearer. They mattered a great deal through the late 1980s, then faded into the background during the growth-heavy markets of the 1990s. When that cycle ended, dividends came back into focus. In the 2000s, often called the lost decade, they were one of the few sources of returns investors could rely on. After the dot-com bubble burst, income moved back to the center of the conversation.
The data across the industry supports that experience. Companies that pay dividends have tended to deliver better returns with less volatility than those that do not. They are sometimes dismissed as slow or outdated, but that picture does not reflect reality. Dividend payers exist across many industries, including areas people often associate with growth. Regular payouts can also act as a guardrail for management, reducing the urge to spend excess cash on acquisitions that look attractive in the moment but weaken long-term value.
Capital Group has highlighted just how important dividends have been over time. Over nearly the past century, they accounted for about 36% of the S&P 500’s total return. That number captures the power of reinvesting income, especially during periods when markets are unsettled. Through many cycles, dividends have remained a dependable contributor to returns and a core building block for long-term portfolios.
Markets do not move in straight lines, and today’s environment makes that easy to see. Higher interest rates, stubborn inflation, the pullback from easy monetary policy, and slower growth have all increased volatility. In periods like these, companies with strong balance sheets and steady cash flows have often continued paying dividends. Those payments may seem modest, but they can provide a sense of stability when markets feel anything but steady.
Given this, we will take a look at some of the best dividend stocks.
Our Methodology:
For this list, we screened for dividend-paying companies with market caps of at least $2 billion. From that list, we identified stocks with stable dividend growth histories, sound financials, and strong balance sheets. Then, we picked 14 stocks with dividend yields above 3%, as of January 29. The stocks were ranked according to their dividend yields.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14. UnitedHealth Group Incorporated (NYSE:UNH)
Dividend Yield as of January 29: 3.03%
On January 28, RBC Capital cut its price recommendation on UnitedHealth Group Incorporated (NYSE:UNH) to $361 from $408. However, it kept an Outperform rating on the stock. The firm said it was encouraged that management has recommitted to a long-term adjusted EPS growth target of 13%–16%. At the same time, analysts are now assuming a steeper earnings ramp. Uncertainty around the CMS advance rate notice remains a key issue. After the weaker-than-expected proposal, UnitedHealth’s leadership also appeared to step back from targeting double-digit EPS growth next year, the analyst noted in a research report.
The stock sold off sharply, falling nearly 17% between January 26 and January 29. UnitedHealth’s 2026 revenue guidance did come in below Wall Street expectations, but that alone does not explain the move. The larger driver was a proposal from the Centers for Medicare & Medicaid Services to raise 2027 Medicare Advantage rates by just 0.09%, roughly in line with 2026 levels. Most analysts had been looking for an increase closer to 4% to 6%.
The CMS announcement rippled across the sector. Several health insurance stocks dropped on the news. UnitedHealth is likely to feel the impact more than most. Its UnitedHealthcare division is the largest Medicare insurer in the US by membership, which leaves the company more exposed to changes in Medicare Advantage pricing.
UnitedHealth Group Incorporated (NYSE:UNH) is a healthcare and well-being company with multiple business lines. Its operations include Optum Health, Optum Insight, Optum Rx, and UnitedHealthcare. The UnitedHealthcare segment spans Employer & Individual, Medicare & Retirement, and Community & State coverage.
13. American Electric Power Company, Inc. (NASDAQ:AEP)
Dividend Yield as of January 29: 3.16%
On January 20, Wells Fargo raised its price objective on American Electric Power Company, Inc. (NASDAQ:AEP) to $140 from $139 and maintained an Overweight rating. The firm said the change reflects a decision to roll its valuation forward by one year, now looking out to 2028.
In a separate development, Reuters reported on January 8 that American Electric Power Company, Inc. (NASDAQ:AEP) plans to move ahead with a major fuel cell investment. One of the company’s units will purchase a large portion of its option for solid oxide fuel cells in a deal valued at about $2.65 billion. The investment supports AEP’s plan to develop and build a fuel cell power generation facility.
AEP first agreed with Bloom Energy in 2024 to acquire 100 megawatts of solid oxide fuel cells. That deal also included an option to buy an additional 900 MW. Earlier this month, the company’s unit exercised that option, according to a regulatory filing.
The company also disclosed that it has lined up a long-term buyer for the power. AEP signed a 20-year offtake agreement with an unnamed customer that will take the full output from the planned facility near Cheyenne, Wyoming. The agreement remains subject to certain conditions, which AEP expects to be met by Q2 2026. If those conditions are not met, the company said it would receive financial compensation covering its capital investment and related costs.
American Electric Power Company, Inc. (NASDAQ:AEP) is an electric utility holding company. Through its operating utilities, it provides generation, transmission, and distribution services to more than five million retail customers across various states.
