In this article, we will take a look at some of the best dividend stocks with over 4% yield.
The appeal of dividend stocks is hard to overlook, as these equities have held up better than other asset classes over the years. However, investors often find themselves torn between high dividend yields and dividend growth, unsure of which path offers the strong upside. Nevertheless, dividend stocks have been a solid contributor to the overall market returns in the past. According to Jeremy Siegel’s The Future for Investors, roughly 97% of the market’s real accumulation from stocks comes from reinvesting dividends, whereas only 3% is tied to capital gains.
High dividend yield stocks also produced strong results in the past. The book also highlighted that from 1958 to 2002, the stocks in the highest-yielding quintile compounded to $462,000, far outpacing the S&P 500, which reached $130,000 during the same period.
Investors today are taking a more patient approach with their investments and often consider dividend growth over yields instead of falling for yield traps. Analyst Chris Senyek of Wolfe Research underscored the significance of Dividend Aristocrats, companies that have raised their dividends for 25 consecutive years, in his recent research note. He noted that the group is underperforming the market this year because of its defensive nature, adding that investors could use the pullback to pick up quality names at discounted levels.
Given this, we will take a look at some of the best dividend stocks with high yields.
Our Methodology:
For this article, we screened for companies with a market cap of at least $2 billion and stable dividend histories, sound balance sheets, and solid financials. From that list, we picked dividend stocks with yields above 4% as of December 7 and ranked them accordingly.
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).
15. Ford Motor Company (NYSE:F)
Dividend Yield as of December 7: 4.60%
Ford Motor Company (NYSE:F) is one of the best dividend stocks to invest in.
On November 26, EvercoreISI increased its price target on Ford Motor Company (NYSE:F) to $12 from $10 and maintained an In Line rating on the shares. The firm updated its outlook for the auto sector to 2027 and sees potential in the market due to the “K economy” and replacement demand. The firm expects over 20% upside for the auto sector in the next year, fueled by a shift from “25 Fears” to “27 Outlooks.”
Though Ford Motor Company (NYSE:F) was making significant efforts in the EV market, it did not indicate a positive outcome for the company. In fact, Ford’s Model e segment reported nearly $4 billion in losses over the last nine months. On December 2, it announced a 61% YoY decline in EV sales, selling just 4,247 units. That said, the company is making adjustments to its EV strategy and plans to launch its Universal EV Platform by 2027. In addition, it is expanding its hybrid and commercial vehicle offerings.
Despite struggling with the market shifts, Ford Motor Company (NYSE:F) reported record revenue of $50.5 billion, which showed a 9% growth from the same period last year. The net income for the quarter came in at $2.4 billion, with adjusted EBITDA of $2.6 billion. The company also demonstrated a solid cash position, posting an operating cash flow of $7.4 billion and free cash flow of $4.3 billion.
Ford Motor Company (NYSE:F) is an American multinational automobile manufacturer that sells a wide range of vehicles under its brand.
14. The AES Corporation (NYSE:AES)
Dividend Yield as of December 7: 5.06%
The AES Corporation (NYSE:AES) is among the best dividend stocks to invest in.
On December 5, The AES Corporation (NYSE:AES) announced a quarterly dividend of $0.176 per share, which was consistent with its previous dividend. Overall, it has been rewarding shareholders with growing dividends for the past 12 consecutive years. The recent dividend is payable on February 13 to shareholders of record on January 30.
In its earnings for the third quarter of 2025, The AES Corporation (NYSE:AES) highlighted its strategic acquisitions. The company reported that it is on track to bring 3.2 GW of new projects online in 2025, with 2.9 GW already completed so far this year. It also announced plans to repower 1.2 GW of natural gas at AES Indiana, with operations expected to begin in 2026.
The AES Corporation (NYSE:AES)’s renewable projects are providing a meaningful impact to the company, resulting in adjusted EBITDA of $830 million in the most recent quarter, up from $698 million in the prior year period. For FY25, the company expects adjusted EBITDA between $2.65 billion and $2.85 billion and adjusted EPS of $2.10 to $2.26. AES also reaffirmed a 5% to 7% long-term growth rate for adjusted EBITDA through 2027.
The AES Corporation (NYSE:AES) is an American utility and power generation company that also specializes in LNG infrastructure.
13. Best Buy Co., Inc. (NYSE:BBY)
Dividend Yield as of December 7: 5.12%
Best Buy Co., Inc. (NYSE:BBY) is one of the best dividend stocks to invest in.
On November 26, Telsey Advisory raised its price target on Best Buy Co., Inc. (NYSE:BBY) to $95 from $90, while keeping an Outperform rating on the stock. The firm appreciated the company’s execution and its growing market share in the consumer electronics space. It also expects Best Buy to come up with new initiatives and product innovations, which would help drive future earnings growth.
Best Buy Co., Inc. (NYSE:BBY)’s recent quarterly earnings were a positive reassurance for shareholders, as the company not only reported strong numbers but also a promising consumer behavior. Its comparable sales grew by 2.7%, driven by strong results across computing, gaming, and mobile phones. The company’s overall revenue came in at $9.6 billion, up from $9.4 billion in the same period last year. Its EPS of $1.40 also surpassed analysts’ expectations of $1.31.
CFO Matthew Bilunas foresees this ongoing growth in computing and mobile phones to be continuous and expects that it will extend into Q4 and next year as well.
On November 25, Best Buy Co., Inc. (NYSE:BBY) also announced a quarterly dividend of $0.95 per share, which was similar to its previous dividend. The company, however, has increased its payouts for 12 consecutive years.
Best Buy Co., Inc. (NYSE:BBY) is a Minnesota-based multinational consumer electronics retailer that offers a wide range of services and products to its customers.
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