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.
12. Capital Southwest Corporation (NASDAQ:CSWC)
Number of Hedge Fund Holders: 18
Dividend Yield as of November 11: 12.09%
Capital Southwest Corporation (NASDAQ:CSWC) is one of the best dividend stocks to invest in.
On November 4, Clear Street upgraded Capital Southwest Corporation (NASDAQ:CSWC) from Hold to Buy while keeping its price target steady at $22, as reported by the Fly.
The firm described the recent quarter as another strong performance that demonstrates the company’s resilient earnings capacity and disciplined underwriting approach. Clear Street added that the company continues to comfortably cover its regular dividend through net interest income, supported by stable earnings, strong credit quality, and upcoming strategic growth opportunities.
In its third-quarter 2025 results, President and CEO Michael Sarner noted that Capital Southwest Corporation (NASDAQ:CSWC) realized $44.8 million in gains from equity exits, which drove an increase in undistributed taxable income per share from $0.64 in September 2024 to $1.13. The board approved regular monthly dividends totaling $0.58 per share for the October–December period, along with a supplemental dividend of $0.06 per share, bringing total dividends for the quarter to $0.64.
During the quarter, the company also raised around $40 million in equity through its at-the-market program at an average share price of $22.81.
Capital Southwest Corporation (NASDAQ:CSWC) is an internally managed business development company that offers tailored debt and equity financing solutions to US middle-market firms.
11. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Number of Hedge Fund Holders: 18
Dividend Yield as of November 11: 14.62%
Innovative Industrial Properties, Inc. (NYSE:IIPR) is one of the best dividend stocks to buy right now.
On November 5, Piper Sandler analyst Alexander Goldfarb raised the firm’s price target on Innovative Industrial Properties, Inc. (NYSE:IIPR) to $44 from $43 while maintaining an Underweight rating, as reported by The Fly. The analyst continued to express caution regarding the company’s investment in privately held life science developer IQHQ, noting that both sectors are still facing challenges related to overcapacity.
In its third-quarter 2025 update, the company mentioned that it finalized its initial investment in IQHQ, a leading life science real estate platform that broadens IIP’s portfolio diversification and is expected to add meaningful earnings growth for shareholders.
Innovative Industrial Properties, Inc. (NYSE:IIPR) reported total revenue of $64.7 million for the third quarter, up 3% from the previous quarter. The increase was mainly driven by a $0.8 million payment received from the Gold Flora receivership and annual rent escalations across its property portfolio. The company also reported maintaining a strong financial position, with $2.7 billion in mostly unencumbered assets, around $80 million in liquidity, and a newly secured $100 million revolving credit facility to fund the IQHQ investment.
Innovative Industrial Properties, Inc. (NYSE:IIPR) is a real estate investment trust (REIT) focused on acquiring, owning, and managing specialized industrial facilities leased to state-licensed operators in the regulated cannabis industry.
10. Hercules Capital, Inc. (NYSE:HTGC)
Number of Hedge Fund Holders: 18
Dividend Yield as of November 11: 10.44%
Hercules Capital, Inc. (NYSE:HTGC) is among the best dividend stocks to invest in.
On November 4, Compass Point upgraded Hercules Capital, Inc. (NYSE:HTGC) from Neutral to Buy and raised its price target to $19.50 from $19.25, as reported by The Fly.
In the third quarter of 2025, the company reported record total investment income of $138.1 million and net investment income of $88.6 million, or $0.49 per share. Hercules closed the quarter with over $1 billion in liquidity across its platform and no significant near-term debt maturities.
Management noted that more than half of the company’s gross fundings for the quarter took place in the final month, with strong momentum continuing into the fourth quarter. As of October 28, 2025, the investment team had completed $554.4 million in new commitments and funded $237.4 million.
Hercules Capital, Inc. (NYSE:HTGC) is a specialty finance firm that provides senior secured loans to venture capital-backed businesses in the technology and life sciences industries.
9. TELUS Corporation (NYSE:TU)
Number of Hedge Fund Holders: 19
Dividend Yield as of November 11: 8.06%
TELUS Corporation (NYSE:TU) is one of the best dividend stocks to invest in.
On November 10, Barclays lowered its price target on TELUS Corporation (NYSE:TU) to $14 from $15 while maintaining an Equal Weight rating on the stock following the company’s third-quarter results, as reported by The Fly.
In Q3 2025, TELUS Corporation (NYSE:TU) reported revenue of C$5.11 billion, up modestly by 0.2% compared to the same period last year, but below analysts’ expectations by C$90 million. The company added 288,000 Mobile and Fixed customers, driven by strong demand for its high-value connectivity services and the national expansion of TELUS PureFibre.
TELUS Corporation (NYSE:TU) also achieved 8% growth in consolidated free cash flow, supporting a quarterly dividend increase to C$0.4184, marking the 22nd consecutive year of dividend growth.
TELUS Health continued its global expansion, recording 18% growth in operating revenue and 24% growth in adjusted EBITDA, extending coverage to more than 160 million lives worldwide. The LifeWorks integration contributed $417 million in combined annualized synergies, including $329 million from cost efficiencies and $88 million from cross-selling, keeping the company on track to reach its $427 million synergy target by year-end 2025.
TELUS Corporation (NYSE:TU) is a Canadian telecommunications provider offering internet, mobile, TV, and home phone services.
8. Ares Capital Corporation (NASDAQ:ARCC)
Number of Hedge Fund Holders: 22
Dividend Yield as of November 11: 9.45%
Ares Capital Corporation (NASDAQ:ARCC) is among the best dividend stocks to invest in.
On October 29, RBC Capital lowered its price target on Ares Capital Corporation (NASDAQ:ARCC) to $23 from $24 while maintaining an Outperform rating following the company’s third-quarter results, according to a report by The Fly. The analyst noted that the company’s strong credit performance in Q3, along with management’s confidence in sustaining common dividends at current levels despite a softer interest rate outlook, addresses key concerns within the BDC sector.
Ares Capital Corporation (NASDAQ:ARCC) reported solid Q3 results, with core earnings of $0.50 per share, surpassing the regular quarterly dividend and delivering an annualized return on equity of 10%. This marked the 20th consecutive quarter in which core earnings exceeded the regular dividend. Net deployments reached $1.3 billion in Q3, more than double the previous quarter, while management remained highly selective in its investment decisions.
The company’s total portfolio at fair value stood at $28.7 billion at quarter-end, up from $27.9 billion in Q2 and $25.9 billion a year ago. As of October 23, 2025, total commitments for Q4 were $735 million, and the backlog hit a record $3 billion.
AAres Capital Corporation (NASDAQ:ARCC) is an American business development company that provides loans and equity financing to middle-market companies.
7. Apple Hospitality REIT, Inc. (NYSE:APLE)
Number of Hedge Fund Holders: 24
Dividend Yield as of November 11: 8.07%
Apple Hospitality REIT, Inc. (NYSE:APLE) is among the best dividend stocks to invest in.
On November 4, BofA downgraded Apple Hospitality REIT, Inc. (NYSE:APLE) from Buy to Neutral, lowering its price target to $11.50 from $15, as reported by The Fly. The analyst cited concerns over low-end softness and the government shutdown affecting certain service brands, as well as a K-shaped recovery dampening corporate demand. Following recent earnings reports, the firm became more cautious on the near-term RevPAR outlook across its lodging coverage.
In Q3 2025, the company’s portfolio fundamentals remained solid despite broader market uncertainties. Comparable Hotels saw occupancy of 76%, down 1.2% from the prior year, an ADR of $163, down 0.6%, and RevPAR of $124, down 1.8% versus Q3 2024. Preliminary data indicated that the government shutdown contributed to a roughly 3% YoY decline in Comparable Hotels RevPAR in October 2025.
Revenue for the quarter reached $373.88 million, down 1.3% from Q3 2024 but exceeding analysts’ estimates by $3 million. From the start of the year through October, the company sold three non-core assets for $37 million and acquired the Homewood Suites Tampa-Brandon for about $19 million. It also repurchased 3.8 million shares for roughly $48 million, reinvested over $50 million in portfolio improvements, and distributed $202 million to shareholders.
Apple Hospitality REIT, Inc. (NYSE:APLE) is a publicly traded REIT that owns one of the largest and most diverse collections of upscale, room-focused hotels in the US.
6. Hess Midstream LP (NYSE:HESM)
Number of Hedge Fund Holders: 25
Dividend Yield as of November 11: 8.56%
Hess Midstream LP (NYSE:HESM) is among the best dividend stocks to invest in.
On October 28, Hess Midstream LP (NYSE:HESM) announced a 2.4% increase in its quarterly dividend to $0.7548 per share, marking the company’s 32nd consecutive quarter of dividend growth. The dividend will be paid on November 14 to shareholders of record as of November 6, with an ex-dividend date of November 6.
For Q3 2025, Hess Midstream LP (NYSE:HESM) reported net income of $176 million, slightly down from $180 million in Q2. Adjusted EBITDA rose to $321 million from $316 million in the prior quarter. The gross adjusted EBITDA margin remained strong at roughly 80%, well above the 75% target, reflecting solid operating leverage.
The third-quarter distribution included the targeted 5% annual growth per Class A share, along with an additional boost following the $100 million share repurchase.
On October 24, Raymond James analyst J.R. Weston lowered Hess Midstream LP (NYSE:HESM)’s price target to $35 from $48 while maintaining an Outperform rating, reflecting adjustments across the midstream suppliers group ahead of Q3 earnings, according to a report by The Fly.
Hess Midstream LP (NYSE:HESM) provides midstream services, including gathering, processing, storing, and transporting crude oil, natural gas, and natural gas liquids.
5. Kinetik Holdings Inc. (NYSE:KNTK)
Number of Hedge Fund Holders: 31
Dividend Yield as of November 11: 8.91%
Kinetik Holdings Inc. (NYSE:KNTK) is among the best dividend stocks to invest in.
On November 10, Wells Fargo analyst Michael Blum lowered Kinetik Holdings Inc. (NYSE:KNTK) price target to $40 from $48, citing a reduced volume outlook, while maintaining an Equal Weight rating, according to a report by The Fly. The analyst noted that the 2025 EBITDA guidance was revised downward to reflect Q3 results and slowing producer activity.
In its Q3 2025 report, Kinetik Holdings Inc. (NYSE:KNTK) highlighted the startup of the Kings Landing processing plant in New Mexico. The company stated that the facility is well-designed, allowing for future processing capacity expansions with fewer operational challenges. Kings Landing is consistently processing over 100 million cubic feet per day, meeting the company’s original expectations.
Kinetik Holdings Inc. (NYSE:KNTK) reported capital expenditures of $154 million and updated its full-year adjusted EBIDTA guidance to a range of $965 million to $1.005 billion, attributing the revision to volume-related challenges, fluctuations in commodity prices, and the timing of the Kings Landing plant start-up.
Kinetik Holdings Inc. (NYSE:KNTK) is a midstream energy firm operating in the Permian Basin, offering services to oil and gas producers.
4. LyondellBasell Industries N.V. (NYSE:LYB)
Number of Hedge Fund Holders: 33
Dividend Yield as of November 11: 12.51%
LyondellBasell Industries N.V. (NYSE:LYB) is among the best dividend stocks to invest in.
On November 11, Evercore ISI analyst Eric Boyes lowered the firm’s price target on LyondellBasell Industries N.V. (NYSE:LYB) to $57 from $65, maintaining an In Line rating on the stock, as reported by The Fly. The third quarter saw a shift in the chemical sector, with roughly two-thirds of about 20 companies posting average gains of 6% after earnings, even though half of them issued below-expectation guidance for Q4 and negative revisions averaging 12%, the analyst noted in a group earnings recap.
That said, LyondellBasell Industries N.V. (NYSE:LYB)’s CEO Peter Z. Vanacker highlighted a very high cash conversion of 135% in Q3, underscoring progress on the company’s cash improvement plan. The firm aims to achieve $600 million by year-end and is targeting at least $1.1 billion by the end of 2026. The company also pointed out that domestic polyethylene demand in 2025 is the strongest since the downturn began in Q3 2022, with North American demand up 2.5% compared to 2024.
LyondellBasell Industries N.V. (NYSE:LYB) further stressed global ethylene capacity rationalization, noting that announced and planned closures and idling from 2020 through 2028 will remove over 21 million tonnes of ethylene capacity, roughly 10% of the global supply, particularly affecting Asia and Europe.
LyondellBasell Industries N.V. (NYSE:LYB) is a global chemical firm producing and marketing polymers, chemicals, and refined products, while also developing and licensing advanced polymer and recycling technologies.
3. Dow Inc. (NYSE:DOW)
Number of Hedge Fund Holders: 40
Dividend Yield as of November 11: 6.28%
Dow Inc. (NYSE:DOW) is one of the best dividend stocks to invest in.
On October 29, Goldman Sachs raised its price target on Dow Inc. (DOW) to $27 from $24, while maintaining a Neutral rating on the stock, as reported by The Fly.
The move followed the company’s third-quarter 2025 earnings report. Dow Inc. (NYSE:DOW) reported net sales of $10.0 billion, down 8% year-over-year, reflecting declines across all operating segments and missing analysts’ estimates by more than $255 million. Volumes fell 1% compared to last year, with decreases in Europe, the Middle East, Africa, and India partially offset by gains in the US, Canada, and Asia Pacific.
Despite the revenue decline, Dow Inc. (NYSE:DOW) maintained a strong cash position. Cash from operating activities from continuing operations reached $1.1 billion, up $330 million year-over-year, driven by improvements in working capital. The company returned $249 million to shareholders in dividends during the quarter.
Dow Inc. (NYSE:DOW) emphasized that it remains on track to deliver over $6.5 billion in near-term cash support, with more than half already achieved. This includes a $1 billion reduction in capital expenditures for 2025 and the accelerated implementation of $1 billion in planned cost savings by the end of 2026.
Dow Inc. (NYSE:DOW) is a leading materials science company, serving high-growth markets including packaging, infrastructure, mobility, and consumer applications.
2. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 53
Dividend Yield as of November 11: 6.90%
United Parcel Service, Inc. (NYSE:UPS) is among the best dividend stocks to invest in.
On October 29, Truist raised its price target on United Parcel Service, Inc. (NYSE:UPS) to $120 from $100 and maintained a Buy rating following the company’s strong third-quarter performance and the reinstatement of its guidance, according to a report by The Fly. The firm noted that UPS’s progress on cost reductions, improved operational efficiency, and encouraging signs of peak season demand suggest the company is well-positioned to sustain double-digit EBIT margins through 2026 and beyond.
United Parcel Service, Inc. (NYSE:UPS) faced challenges from slower economic growth and shifting consumer behavior, as spending moved from goods to travel and services, impacting volume growth and margins. Tariff-related uncertainty under the Trump administration also weighed on customer sentiment.
However, the company is addressing these headwinds by targeting growth in high-potential segments, including healthcare and small to mid-sized businesses. For the third quarter of 2025, the company reported adjusted earnings per share of $1.74 on revenue of $21.4 billion.
United Parcel Service, Inc. (NYSE:UPS) provides transportation, logistics, and package delivery services across both domestic and international markets.
1. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 54
Dividend Yield as of November 11: 7.26%
Altria Group, Inc. (NYSE:MO) is among the best dividend stocks to invest in.
On October 31, UBS analyst Faham Baig lowered the firm’s price target on Altria Group, Inc. (NYSE:MO) from $68 to $61 while maintaining a Neutral rating on the stock, as reported by The Fly. The analyst noted that the company’s third-quarter performance showed stronger-than-expected cigarette volumes, mainly supported by its lower-priced Basic brand.
While this mix impacted pricing, UBS does not expect heightened price competition, as Altria is expected to remain disciplined in its strategy to prevent further downtrading. The firm also anticipates that higher benefits from duty drawbacks could give the company more room to achieve mid-single-digit earnings growth over the next three years.
In Q3 2025, Altria Group, Inc. (NYSE:MO)’s smokeable products segment saw domestic cigarette shipment volumes fall 8.2%, mainly due to ongoing industry declines and market share losses, partly offset by trade inventory movements. Revenue from the segment totaled $16.2 billion.
The company continues to rely heavily on the US market, where cigarette use has steadily declined over the years. To adapt, Altria has been expanding into next-generation products through its Njoy brand, which offers both single-use vapes and pod systems. Though still a smaller part of the business, Njoy has been showing solid growth.
Altria Group, Inc. (NYSE:MO) produces and markets smokeable and oral tobacco products in the US, with leading brands such as Marlboro and Black & Mild.
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