In this article, we will take a look at some extreme dividend stocks to invest in.
Dividend-focused indices generally fall into two main categories: dividend growth and high yield. A report from ProShares explained that while high-yield stocks often attract investors seeking income, companies paying very high dividends sometimes face challenges in reinvesting enough in their businesses, which can limit future growth. Such companies have also shown a tendency to reduce dividends during difficult periods, as seen during the Global Financial Crisis.
In comparison, the S&P 500 Dividend Aristocrats, which are companies that have increased their dividends for at least 25 consecutive years, have shown steady growth in payouts even during tough market conditions. As a result, they tend to offer stronger yield-on-cost over time, despite starting with lower initial yields.
That said, high yields are not always a disadvantage. The S&P Sector-Neutral High Yield Dividend Aristocrats (HYDA) index, which aims to balance dividend growth with higher yields, has demonstrated lower volatility than the benchmark. According to S&P Dow Jones Indices, between January 2005 and July 2023, HYDA achieved better risk-adjusted returns and reduced its maximum drawdown by about 5%.
Given this, we will take a look at some of the best dividend stocks with high yields.
Our Methodology:
For this list, we used a stock screener and selected dividend stocks with yields ranging from 6% to 14%, as of November 11. Among those stocks, we chose companies that have relatively stable dividend histories; however, a lot of the companies on the list don’t have a consistent record of paying dividends due to their exceptionally high yields. From the final list, we picked companies that were most famous among hedge fund investors, as tracked by Insider Monkey’s database of Q2 2025, and ranked them in ascending order.
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. Sunoco LP (NYSE:SUN)
Number of Hedge Fund Holders: 2
Dividend Yield as of November 11: 7.34%
Sunoco LP (NYSE:SUN) is among the best dividend stocks to invest in.
On November 10, Citi began coverage of Sunoco LP (NYSE:SUN) with a Buy rating and a $65 price target, according to a report by The Fly. The firm noted that even though gasoline demand has been on the decline since 2018, the company has managed to more than triple its EBITDA during that period.
In its third-quarter 2025 earnings report, Sunoco LP (NYSE:SUN) announced the completion of its $9 billion acquisition of Parkland Corporation. The merger created the largest independent fuel distributor in the Americas and a major operator of energy infrastructure. The combined company generated more than $3 billion in pro forma adjusted EBITDA over the past year, with the acquisition expected to deliver over $250 million in synergieses by 2028 and result in more than 10% accretion.
During the quarter, Sunoco LP (NYSE:SUN) reported revenue of $6.03 billion, reflecting an increase of nearly 5% compared to the same period a year earlier and surpassing analysts’ estimates by $284 million. The company also raised its quarterly distribution by 1.25% and remains on track to achieve its target of at least 5% distribution growth in 2025.
Sunoco LP (NYSE:SUN) operates as a major energy infrastructure and fuel distribution master limited partnership, serving 32 countries and territories across North America, the Greater Caribbean, and Europe.
14. Western Midstream Partners, LP (NYSE:WES)
Number of Hedge Fund Holders: 5
Dividend Yield as of November 11: 9.18%
Western Midstream Partners, LP (NYSE:WES) is among the best dividend stocks to invest in.
On November 6, Stifel analyst Selman Akyol increased the firm’s price target on Western Midstream Partners, LP (NYSE:WES) from $41 to $43 while maintaining a Hold rating, as reported by The Fly. The analyst noted that the company delivered its Q3 results that slightly exceeded expectations and raised its full-year EBITDA outlook toward the higher end of the guidance range. The revised price target reflects the firm’s 2026 outlook, which factors in the recently completed Aris acquisition.
In its Q3 2025 report, President and CEO Oscar Brown highlighted record natural gas throughput in the Delaware Basin and the successful completion of the Aris Water Solutions acquisition, describing it as a key step in strengthening Western Midstream Partners, LP (NYSE:WES)’s role as a leading three-stream midstream provider in the region. Brown said the integration is progressing well and projected $40 million in annual synergy savings.
Western Midstream Partners, LP (NYSE:WES) now expects to reach the upper end of its previously guided 2025 adjusted EBITDA range of $2.35 billion to $2.55 billion, which includes an estimated $45 million to $50 million contribution from Aris in the fourth quarter.
Western Midstream Partners, LP (NYSE:WES) operates in the midstream segment of the energy industry, handling the gathering, processing, and transportation of natural gas, crude oil, and natural gas liquids from production sites to end markets.
13. Barings BDC, Inc. (NYSE:BBDC)
Number of Hedge Fund Holders: 8
Dividend Yield as of November 11: 11.66%
Barings BDC, Inc. (NYSE:BBDC) is among the best dividend stocks to invest in.
On November 10, Keefe Bruyette & Woods cut its price target on Barings BDC, Inc. (NYSE:BBDC) to $9.50 from $10 while maintaining a Market Perform rating on the stock, according to a report by The Fly.
Barings BDC, Inc. (NYSE:BBDC) posted solid third-quarter 2025 results. For the quarter ended September 30, the company reported total investment income of $72.4 million and net investment income of $33.6 million, or $0.32 per share. Net assets from operations increased by $23.6 million, or $0.22 per share.
Executive Chairman and CEO Eric Lloyd highlighted the company’s strong net investment income and robust credit performance within the Barings-originated portion of the portfolio, which now makes up about 95% of its fair value. The company also announced a quarterly dividend of $0.26 per share.
Barings BDC, Inc. (NYSE:BBDC) focuses on providing financing solutions to privately held, middle-market businesses to support acquisitions, growth initiatives, and refinancing needs.
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