In this article, we will take a look at some of the best dividend stocks with high yields.
Over the years, dividend-paying stocks have become increasingly popular as investors lean toward income-focused investment strategies. Many conservative investors have committed hundreds of billions of dollars across numerous funds based on the belief that companies with a consistent track record of raising dividends tend to deliver the strongest long-term market performance.
According to Ed Clissold of Ned Davis Research, over 80% of companies in the broader market currently pay dividends, and 324 of them have either initiated or increased their payouts over the past year. Interestingly, it was earlier research by Clissold’s firm that helped spark the widespread interest in dividend-growing stocks. That study, based on an older return calculation method that has since been widely replicated, highlighted the strong performance of companies that regularly increased their dividends.
However, as the firm has updated its methods to align with changes in the industry, the findings suggest that while dividend growers have performed well, focusing on high-yielding dividend stocks may be even more rewarding. This yield-based strategy has outperformed dividend growers in both rising and falling markets since 1973. Financial advisers suggest that investors start by examining a stock’s dividend yield, which is determined by dividing the annual dividend by the stock’s current price. This figure indicates the income an investor earns for every dollar put into the stock.
However, high dividend yield tends to come with higher volatility and more frequent portfolio turnover. It isn’t always a positive sign. It can sometimes signal trouble, especially if it’s driven by a drop in the stock’s price. In these situations, there’s a risk that the company may reduce its dividend payments—something that often happens during periods of financial strain. Advisers emphasize the need to go beyond surface-level metrics and examine a company’s core financials to assess its overall stability and strength. Jason Alonzo, managing director at Harbor Capital Advisors, made the following comment about investing in dividend stocks:
“Make sure the company has a strong balance sheet and its prospects for earnings-per-share growth are strong, so the company is well-positioned to maintain dividend payments in the future even if there is a recession.”
While the debate between dividend growth and high yield continues, analysts emphasize that dividend-paying stocks are not all created equal. Stocks that offer a solid yield along with steady dividend increases often reflect strong fundamentals, as they suggest the company can reward shareholders while still investing in future growth. The dividend payout ratio plays a critical role in assessing a company’s flexibility with its dividend policy. Firms that use nearly all of their earnings to cover dividends—or barely earn enough to sustain them—might face challenges, especially when under competitive pressure, due to limited cash flow for operational support. Given this, we will take a look at some of the best dividend stocks with high yields.
Photo by Annie Spratt on Unsplash
Our Methodology
For this article, we used a screener to identify dividend companies with above-average dividend yields. From there, we picked companies that have raised their payouts for at least 10 consecutive years, which shows their long-term growth. Finally, we picked 15 stocks with the highest dividend yields, as of May 9, and ranked them accordingly.
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15. Texas Instruments Incorporated (NASDAQ:TXN)
Dividend Yield as of May 9: 3.18%
Texas Instruments Incorporated (NASDAQ:TXN) is an American semiconductor company that specializes in analog and embedded chips. Over the past year, the company has prioritized its capital allocation, aiming to maintain consistent free cash flow. This strategy includes increased spending on R&D and expanding its manufacturing capabilities. The company also continues to strengthen its direct relationships with customers, supported by its online platform, TI.com. Its focus on sustainability aligns with environmental regulations, benefiting both its reputation and long-term operations.
In the first quarter of 2025, Texas Instruments Incorporated (NASDAQ:TXN) reported revenue of $4.07 billion, an 11% increase from the same quarter a year earlier. Net income reached $1.18 billion, while earnings per share stood at $1.28, exceeding Wall Street forecasts by $0.18. Looking ahead, the company expects second-quarter revenue to fall between $4.17 billion and $4.53 billion, with projected EPS ranging from $1.21 to $1.47. It also anticipates an effective tax rate of 12% to 13% for the quarter.
Texas Instruments Incorporated (NASDAQ:TXN) continued to generate healthy cash flow, which supported shareholder returns. Over the last 12 months, the company posted $6.2 billion in operating cash flow and $1.7 billion in free cash flow, underscoring the resilience of its business model, its strong product lineup, and the efficiency of its 300mm production. During that time, TI spent $3.8 billion on R&D and SG&A, allocated $4.7 billion to capital investments, and returned $6.4 billion to shareholders.
Texas Instruments Incorporated (NASDAQ:TXN) currently offers a quarterly dividend of $1.36 per share and has a dividend yield of 3.18%, as of May 9. It is one of the best dividend stocks on our list as the company has raised its payouts for 21 years in a row.
14. Medtronic plc (NYSE:MDT)
Dividend Yield as of May 9: 3.35%
Medtronic plc (NYSE:MDT) is a medical device company that operates across various segments, including medical-surgical, neuroscience, cardiovascular, and diabetes. The stock is generating strong returns this year, surging by over 4% since the start of 2025.
Medtronic plc (NYSE:MDT) has spent years working on its robotic-assisted surgery system, known as Hugo. While the device is already being used in several countries, it has yet to receive regulatory approval in the US—a market with significant revenue potential. To pave the way for US clearance, the company has been conducting tests domestically. In a recent update, Medtronic revealed that it has officially submitted its application to the US Food and Drug Administration (FDA) for the Hugo system. This move follows a successful clinical trial involving 137 patients undergoing urologic procedures, where the device achieved its main safety and effectiveness goals.
In fiscal Q3 2025, Medtronic plc (NYSE:MDT) posted revenue of $8.3 billion, reflecting a 2.5% increase from the same period a year earlier, though it slightly missed Wall Street’s estimate of $8.33 billion. The company reported GAAP diluted earnings per share (EPS) of $1.01, while its adjusted EPS rose 7% year-over-year to $1.39, surpassing analysts’ expectations of $1.35.
Beyond its earnings performance, Medtronic plc (NYSE:MDT) also highlighted a strong cash position, which supports its long-standing dividend program. During the first nine months of the fiscal year, the company generated $4.5 billion in operating cash flow and $3.1 billion in free cash flow. Thanks to its solid financial footing, Medtronic has maintained a 47-year streak of consecutive dividend increases, just three years away from earning the title of Dividend King. It currently pays a quarterly dividend of $0.70 per share and has a dividend yield of 3.35%, as recorded on May 9.
13. The Clorox Company (NYSE:CLX)
Dividend Yield as of May 9: 3.62%
The Clorox Company (NYSE:CLX) is a California-based company that specializes in the manufacturing and marketing of consumer and professional products. The company recently reported its fiscal Q3 2025 earnings, which couldn’t meet investors’ and analysts’ expectations. The reason for lower-than-expected sales was the challenging and volatile consumer and geopolitical environment.
The Clorox Company (NYSE:CLX) reported revenue of $1.67 billion, which fell by 8% from the same period last year. Its revenue and EPS of $1.45 both missed analysts’ consensus by $49.03 million and $0.11, respectively. Organic volume remained unchanged, largely due to a decline in consumer demand across several of the company’s segments. Meanwhile, gross margin improved by 240 basis points, rising to 44.6% from 42.2% in the same quarter last year. This increase was mainly attributed to cost-saving initiatives and the positive impact of selling off its VMS and Argentina operations.
The Clorox Company (NYSE:CLX)’s cash position remained stable as the company ended the quarter with $226 million in cash and cash equivalents. Moreover, it generated $687 million in operating cash flow YTD, which showed a 94% increase on a YoY basis. The company’s quarterly dividend comes in at $1.22 per share, and it has raised its payouts for 22 years in a row. With a dividend yield of 3.62%, as of May 9, CLX is one of the best dividend stocks on our list.
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