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 They are sometimes dismissed as slow or outdated, but that picture does not reflect reality.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.
12. Fifth Third Bancorp (NASDAQ:FITB)
Dividend Yield as of January 29: 3.21%
On January 26, Truist lifted its price objective on Fifth Third Bancorp (NASDAQ:FITB) to $60 from $55 and kept a Buy rating after the bank posted a stronger-than-expected Q4. The firm did lower its FY26 EPS estimate by $0.10 to $4.18. That change reflects the earlier-than-planned close of the Comerica deal and a higher tax rate outlook of 23%, up from the prior 22%, the analyst said in a research note.
A few days earlier, on January 20, Fifth Third reported an increase in fourth-quarter profit, driven by higher interest income as loan demand improved. Steady economic growth, recent Federal Reserve rate cuts, and easing concerns around tariffs have helped lift confidence across the US economy. As a result, both households and businesses have been more willing to borrow.
Lower borrowing costs have made credit more accessible, reducing the interest paid on both new and existing loans. Fifth Third’s net interest income rose 6% to $1.53 billion, and total loans grew 5%. The bank also saw strength in several fee-based businesses. Wealth and asset management revenue jumped 13% to a record $185 million in the fourth quarter. Commercial payments revenue increased 8%, while assets under management climbed about 16% to $80 billion.
Some areas also lagged, as capital markets fees slipped 2% to $121 million, mainly due to weaker loan syndication activity.
Fifth Third Bancorp (NASDAQ:FITB) is a diversified financial services company and serves as the indirect holding company of Fifth Third Bank, National Association.
11. Mondelez International, Inc. (NASDAQ:MDLZ)
Dividend Yield as of January 29: 3.46%
On January 28, Morgan Stanley raised its price objective on Mondelez International, Inc. (NASDAQ:MDLZ) to $65 from $64. It also kept an Overweight rating on the stock. The firm said the recent decline in cocoa prices is incrementally constructive for Mondelez, giving analysts better visibility into EPS forecasts. Near-term uncertainty around organic sales growth is still part of the picture, the analyst told investors.
Mondelez has built a strong record of returning cash to shareholders. Over the past five years, the company has grown its dividend at an annual rate above 10%. Since 2018, it has also repurchased more than $13 billion of its own shares, cutting the share count by about 15%. Management believes it can continue to return capital while expanding its global lineup of well-known snacking brands.
Cocoa costs remain a major headwind. Mondelez has warned that “unprecedented cocoa cost inflation” could reduce adjusted earnings per share by as much as 15% in 2025. Even with that pressure, the company is operating from a position of financial strength. Its broad geographic footprint and portfolio of established brands offer support as economic uncertainty increases.
Mondelez International, Inc. (NASDAQ:MDLZ) is one of the world’s largest snack companies. Its portfolio includes biscuits such as cookies and crackers, along with chocolate, cakes and pastries, snack bars, and candy.
10. Bank of Montreal (NYSE:BMO)
Dividend Yield as of January 29: 3.50%
On January 28, as previously reported, TD Securities analyst Mario Mendonca upgraded Bank of Montreal (NYSE:BMO) to Buy from Hold and raised his price target to C$209 from C$184. The move followed a change in the bank’s return on equity outlook. BMO shifted its guidance from 15% in the medium term to 15% exiting 2027, a change the firm views “very favourably,” Mendonca told investors. Based on that update, the firm now expects the bank’s ROE to increase by about 300 basis points over the next two years, outpacing peers by roughly 150 basis points, which led the analyst to raise estimates.
BMO’s earnings base is spread across Canadian banking, US banking, wealth management, and capital markets. That mix tends to provide balance, since a slowdown in one area rarely derails the entire business. The stock has reflected that stability, rising nearly 40% over the past year. Looking ahead to 2026, the focus is likely to be on credit quality, loan demand, and how changes in interest rates affect margins.
The bank delivered a strong finish to fiscal 2025. In the fourth quarter, adjusted profit climbed to $2.5 billion, or $3.28 per share, up from $1.5 billion, or $1.90 per share, a year earlier. For the full year, BMO reported adjusted net income of $9.3 billion and adjusted EPS of $12.16. Shares trade at around 16.4 times earnings and offer a forward dividend yield of about 3.5%. The main risk is familiar: after a sharp run higher, bank stocks can start to look expensive, and an economic slowdown can push loan losses higher.
Bank of Montreal (NYSE:BMO) is a North American bank that provides a wide range of personal and commercial banking, wealth management, global markets, and investment banking services.
9. Chevron Corporation (NYSE:CVX)
Dividend Yield as of January 29: 3.94%
On January 27, BofA lifted its price target on Chevron Corporation (NYSE:CVX) to $188 from $180. It also kept a Buy rating on the stock. The firm said the change reflects updated views across its coverage of Integrated, Refining, and Midstream companies. Analysts pointed to higher front-month crude prices, helped by the removal of Maduro in Venezuela and ongoing unrest in Iran. BofA sees a mix of geopolitical factors and company-specific drivers shaping the outlook.
A Reuters report on January 28 said Chevron is preparing to ramp up shipments of Venezuelan crude to the US. Exports are expected to climb to about 300,000 barrels per day in March. That would mark a sharp rebound from late last year, when shipments slowed, and oil backed up in storage after US restrictions disrupted normal flows. To move that crude, Chevron has secured several tankers and is speeding up loadings.
Chevron’s joint ventures with PDVSA are currently producing about 240,000 to 250,000 barrels per day of heavy crude, a grade favored by Gulf Coast refiners. Those operations were not impacted by recent PDVSA production cuts. Chevron had been the only company authorized to ship Venezuelan oil to the US, but that advantage has narrowed. Vitol and Trafigura have since received US licenses, adding new competition.
Company executives have said Chevron could quickly double crude loadings and lift production over the next two years. The plan centers on repairing and upgrading existing facilities rather than building new ones, part of a broader, US-backed effort to help rebuild Venezuela’s oil industry.
Chevron Corporation (NYSE:CVX) is an integrated energy company. It produces crude oil and natural gas, manufactures transportation fuels, lubricants, petrochemicals, and additives, and develops technologies that support its operations and the wider energy industry.
8. Polaris Inc. (NYSE:PII)
Dividend Yield as of January 29: 4.18%
On January 28, Seaport Research trimmed its price recommendation on Polaris Inc. (NYSE:PII) to $80 from $83. The firm maintained a Buy rating. The change followed solid Q4 results, even as the company issued guidance that came in below expectations.
During the earnings call, CEO Michael Speetzen said the results reflected the resilience of Polaris’ team after a challenging year dominated by tariff pressures. He described tariffs as the toughest test the company has faced since the pandemic. Despite that backdrop, Polaris met nearly all of its commitments and exceeded them in certain areas.
The company also gained market share across its major categories, including off-road vehicles, snowmobiles, pontoons, and motorcycles. New product launches helped drive that momentum, with models like the RZR XP S and the more affordable RANGER 500 resonating with customers.
Speetzen pointed to continued progress in reducing the company’s exposure to China. By the end of 2025, China represented about 14% of the material cost of goods sold, down from 18% in 2024. He reiterated the goal of cutting that figure to below 5% by 2027.
On the operational side, Polaris delivered more than $60 million in cost savings and reduced warranty expenses by $25 million as product quality improved. Speetzen also confirmed that the planned separation of Indian Motorcycle remains on track to close by the end of the quarter. The move is expected to provide an immediate boost to EBITDA margins and adjusted EPS.
Polaris Inc. (NYSE:PII) is a leading US manufacturer of powersports vehicles, with products spanning off-road vehicles, snowmobiles, motorcycles through Indian Motorcycle, and boats.
7. Bristol-Myers Squibb Company (NYSE:BMY)
Dividend Yield as of January 29: 4.60%
On January 27, Citi analyst Geoff Meacham raised his price objective on Bristol-Myers Squibb Company (NYSE:BMY) to $60 from $53. The analyst maintained a Neutral rating and mentioned that the change came as part of a broader Q4 preview for the biopharma sector. Citi adjusted targets across the group, with Meacham noting that estimates that are “beatable” and lower policy risk could create a more favorable setup for the sector in 2026.
Separately, Bristol Myers recently announced a partnership with Microsoft focused on earlier detection of lung cancer. Under the agreement, the company will use Microsoft’s AI-enabled radiology platform, which deploys US Food and Drug Administration-cleared algorithms through the Precision Imaging Network. The system analyzes X-ray and CT scans to help identify lung disease and is already in use at hospitals across the United States. Bristol Myers said the tools could help clinicians find hard-to-detect lung nodules and identify some patients at earlier stages.
The company said a key goal of the partnership is to expand access to early detection in medically underserved areas. That includes rural hospitals and community clinics across the US.
While the announcement itself is relatively small, it highlights the practical value AI can bring to clinical care. If the effort delivers results, it would not be surprising to see Bristol Myers expand the approach to other disease areas.
Bristol-Myers Squibb Company (NYSE:BMY) is a global biopharmaceutical company focused on discovering, developing, and delivering medicines for patients with serious diseases, including cancer, blood disorders, immune conditions, cardiovascular disease, and neurological disorders.
6. Skyworks Solutions, Inc. (NASDAQ:SWKS)
Dividend Yield as of January 29: 5.16%
On January 26, B. Riley analyst Craig Ellis cut his price objective on Skyworks Solutions, Inc. (NASDAQ:SWKS) to $60 from $70. The analyst kept a Neutral rating on the stock. In a research note, he said Q4 results should come in slightly above consensus, helped in part by the iPhone 17 cycle. Q1 guidance, though, is expected to be in line with lower, reflecting weaker conditions in the Android business.
Skyworks had struck a more upbeat tone earlier. In November, the company forecast first-quarter revenue and profit above Wall Street estimates, pointing to strong demand for its radio-frequency chips used in Apple’s latest 5G iPhones. The rapid rollout of 5G smartphones, along with the early push into AI-enabled devices, has supported demand. Skyworks remains a key supplier of radio-frequency chips for 5G and continues to benefit from Apple’s annual iPhone launch.
Beyond smartphones, growth in Skyworks’ broad markets segment has also picked up. That business supplies chips to automotive, industrial, and Internet of Things applications. Adoption of WiFi 7, the rise of connected vehicles, and AI-driven upgrades are driving demand across those end markets.
In October, Skyworks announced a cash-and-stock offer to acquire rival Qorvo, a move that would create a radio-chip company valued at roughly $22 billion. The deal values Qorvo at $9.76 billion. Both companies are major suppliers to Apple and other smartphone makers, providing chips that manage the radio signals used to transmit wireless data.
Skyworks Solutions, Inc. (NASDAQ:SWKS) designs wireless networking products. Its analog and mixed-signal semiconductors support a wide range of applications, connecting devices and systems across multiple industries.
5. Kimberly-Clark Corporation (NASDAQ:KMB)
Dividend Yield as of January 29: 5.20%
On January 28, BofA analyst Anna Lizzul lowered her price objective on Kimberly-Clark Corporation (NASDAQ:KMB) to $130 from $148 and kept a Buy rating on the stock. The firm said Kimberly-Clark continues to execute on its transformation plan. The lower target reflects a reduced P/E multiple applied to the company’s 2027 EPS estimate, driven by valuation compression across the sector.
A day earlier, on January 27, Kimberly-Clark reported quarterly profit that came in above expectations. Results were supported by cost controls and steady demand for core products such as Huggies diapers and Kleenex tissues across North America, China, and other major markets.
In recent years, the Dallas-based company has cut jobs and exited lower-margin businesses, including its private-label diaper and personal protective equipment units. Those moves have helped protect margins. At the same time, the company has expanded its affordable product ranges, offering lower-priced items that still include premium features. The strategy is aimed at attracting cost-conscious shoppers while staying competitive.
Kimberly-Clark is also reshaping itself into a global consumer health company following its $40 billion acquisition of Tylenol maker Kenvue. The deal is expected to close by year-end and marks a major step in the company’s long-term strategy.
In the fourth quarter, prices declined 1.1%, while organic sales rose 2.1%. Growth was driven by a 2.7% increase in overall volumes, as consumers bought everyday essentials such as sanitary pads and paper napkins, often through warehouse clubs that sell larger, value-focused packs.
Kimberly-Clark Corporation (NASDAQ:KMB) is a global company focused on personal care products. Its operations are organized across North America and the International Personal Care segments.
4. Edison International (NYSE:EIX)
Dividend Yield as of January 29: 5.60%
On January 28, JPMorgan analyst Aidan Kelly raised his price target on Edison International (NYSE:EIX) to $66 from $65 and kept a Neutral rating on the stock. The firm said the update reflects changes to its model ahead of the company’s Q4 earnings report.
Edison International operates mainly through Southern California Edison, one of the largest regulated electric utilities in the US. The business earns returns through CPUC-approved investments in its rate base rather than through changes in electricity usage. SCE carries an authorized return on equity of 10.33%, one of the highest levels in the industry. Long-term visibility comes from multi-year general rate cases that support spending on grid upgrades, wildfire mitigation, and clean energy infrastructure.
Customer growth remains modest, but demand trends in California continue to support investment. A strong commercial economy, rising electrification, and increasing power needs are driving ongoing capital deployment. That backdrop underpins management’s 5% to 7% EPS growth outlook and supports a long history of dividend growth.
Edison International (NYSE:EIX) is one of the largest electric utility holding companies in the US. The company focuses on delivering clean, reliable energy and related services through its operating subsidiaries.
3. NNN REIT, Inc. (NYSE:NNN)
Dividend Yield as of January 29: 5.73%
On January 20, Deutsche Bank upgraded NNN REIT, Inc. (NYSE:NNN) to Buy from Hold and set a $47 price objective as part of its 2026 outlook. The move came against a tough backdrop for the broader REIT sector. The group has lagged the S&P 500 in each of the past four years and in nine of the last 11 years. Deutsche expects that pattern to continue into 2026, the analyst said in a research note.
The firm is forecasting a weighted average return of 10.3% across its REIT coverage. That compares with Deutsche’s equity strategy team calling for the S&P 500 to reach 8,000, implying about 16.9% upside from 2025 levels. From a macro standpoint, Deutsche sees limited support for REITs. Expectations call for just one Federal Reserve rate cut in 2026, alongside slower GDP growth and higher unemployment. In that environment, the firm believes REIT earnings growth is unlikely to keep pace with the broader market, making the sector less appealing for growth-focused investors.
NNN REIT operates in a more defensive corner of the space. The trust invests primarily in retail and service-oriented properties, with a focus on automotive service locations, which account for 18.4% of annual base rent. Convenience stores make up 16.2%, while restaurants represent another meaningful portion, split between limited-service and full-service locations.
These assets tend to generate steady, predictable income. Tenants are responsible for operating costs, property taxes, and routine capital spending. Lease terms typically run 10 to 20 years and include modest, low single-digit annual rent increases.
Although retail-focused, NNN REIT, Inc. (NYSE:NNN) emphasizes diversification to limit risk. The portfolio includes nearly 3,700 properties across all 50 states, leased to more than 400 national and regional tenants spanning over 35 different lines of trade.
2. United Parcel Service, Inc. (NYSE:UPS)
Dividend Yield as of January 29: 6.25%
On January 28, Bernstein analyst David Vernon raised his price target on United Parcel Service, Inc. (NYSE:UPS) to $128 from $125 and kept an Outperform rating on the stock. The firm pointed to very strong Q4 2025 results. UPS guided 2026 results largely in line with expectations, supported by better-than-expected revenue and weaker-than-expected margins. Bernstein said the strength of the fourth-quarter beat, combined with margin trends exiting the year, should be enough to offset the softer margin outlook.
UPS has also taken visible steps to reshape its cost base. The company recently said it plans to eliminate up to 30,000 jobs and close another 24 facilities in 2026. The move comes as UPS continues to scale back deliveries for Amazon, part of a broader shift toward higher-margin business. In January last year, UPS said it would accelerate efforts to cut millions of low-profit deliveries tied to the online retailer, its largest customer and an increasingly direct competitor. Management has previously described that business as “extraordinarily dilutive” to margins. The changes come against a backdrop of persistently soft demand across the delivery industry, affecting UPS and peers such as FedEx.
The restructuring follows a difficult 2025. During the year, UPS eliminated 48,000 jobs, launched buyout programs for drivers, and closed operations at 93 buildings as Amazon volumes declined. The planned reductions for this year will be handled through attrition and another buyout offer for full-time drivers. Layoffs are not expected, according to Chief Financial Officer Brian Dykes.UPS operates with a largely unionized workforce. Dykes said many of the job cuts will occur when positions remain unfilled, as part-time employees leave. The company expects revenue to decline in the first half of the year as it completes the Amazon “glide-down.” Revenue is expected to improve sequentially in the second half once the transition is complete.
United Parcel Service, Inc. (NYSE:UPS) provides integrated logistics services to customers in more than 200 countries and territories around the world.
1. Altria Group, Inc. (NYSE:MO)
Dividend Yield as of January 29: 6.90%
A January 29 Reuters report said Altria Group, Inc. (NYSE:MO) expects profit to improve in the second half of the year by using a US tax rebate tied to higher cigarette imports and exports. The update came after the company narrowly missed fourth-quarter 2025 profit estimates on January 29.
Altria said its full-year 2026 profit outlook still sits ahead of analyst expectations. That confidence is partly tied to a tax provision known as the “double duty drawback.” Tobacco companies that export products outside the U.S. can reclaim federal excise taxes paid on cigarettes sold domestically, as long as similar products are shipped overseas. The exported cigarettes themselves do not need to have been taxed.
Until now, Altria has largely been unable to benefit from this provision. Unlike rivals such as British American Tobacco, the company does not sell cigarettes directly outside the United States. That dynamic is starting to change.
The Marlboro maker is working with international partners, including Korea’s KT&G, to expand cigarette exports through arrangements such as contract manufacturing.
Altria’s finance chief Salvatore Mancuso, who is set to become CEO in May, told Reuters it would be foolish not to use the provision and remain at a competitive disadvantage. The shift comes as traditional tobacco volumes continue to decline. Altria has been working to offset that pressure by building revenue from newer products, including its On! nicotine pouch brand. Progress has been uneven, with competitors taking share in key categories.
For 2026, Altria expects adjusted earnings of $5.56 to $5.72 per share. The midpoint of that range is above the analyst consensus estimate of $5.58, according to LSEG data.
Altria Group, Inc. (NYSE:MO) operates a portfolio of tobacco products for US consumers aged 21 and older. Its business is centered on smokeable products and oral tobacco offerings.
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