In this article, we will take a look at some of the best dividend stocks with high yields.
Dividend-paying stocks have been gaining popularity among investors due to their long-term advantages. According to Jeremy Zirin, who leads the US equity team for private clients at UBS Asset Management, companies with a consistent track record of increasing dividends are a smart choice for investors seeking a balanced approach in the current market environment. When markets dipped in April after President Donald Trump announced new tariff policies, investors gravitated toward high-yield dividend stocks. However, as trade tensions began to ease and negotiations progressed, markets recovered. Stocks surged particularly after the US and China agreed to temporarily reduce tariffs. He made the following comment about dividend stocks:
“The higher-dividend-yielding strategies tend to do better when markets are in real turmoil and declining, but if there’s more chop, more volatility and potentially upside … you don’t want to be overly defensive.”
Historically, companies that consistently increase their dividends have tended to be less volatile and often delivered stronger returns than the broader market, including benchmarks like the S&P Equal Weight Index. According to a report by Guggenheim, from May 2005 through December 2024, firms that either initiated or raised their dividends generated an average annual return of 10.5%. In contrast, companies that cut or suspended their payouts posted just 5.5% annually. The overall market returned 10.4% during this timeframe, slightly behind the dividend growers. The report also highlighted that dividend growth strategies have historically performed well in both rising and falling markets, making them an attractive option for investors focused on long-term gains and downside protection.
According to a report by S&P Global, the growth of global dividend payments had been slowing since the post-COVID recovery, but that trend reversed last year. In 2024, the growth rate unexpectedly accelerated to 8%, with shareholders receiving approximately $180 billion more than the previous year. This increase came as a surprise given the persistent geopolitical and economic challenges. The report also highlighted that several sectors and regions saw record dividend initiations, including the US technology, media, and telecom (TMT) sector, banks in Italy and Spain, Japan’s automotive industry, and a general rise in payouts from Mainland China. Even with extreme price fluctuations, dividend payments from the oil and gas sector remained strong. Looking ahead, the report suggested that this high level of dividends is likely to hold steady, with global payouts expected to remain at $2.3 trillion in 2025.
With growing investor appetite for dividend-paying stocks, many companies have responded by gradually increasing their dividend payouts. A report by Janus Henderson revealed that global dividend payments reached a record $1.75 trillion in 2024, reflecting a 6.6% rise on an underlying basis. The overall growth rate came in at 5.2%, slightly held back by a drop in special one-time dividends and the effect of a stronger U.S. dollar. Out of the 49 countries covered in the report, 17—including major economies such as the US, Canada, France, Japan, and China—posted record-high dividend levels. In total, 88% of companies either raised or held their dividends steady over the year. Given this, we will take a look at some of the best dividend growth stocks with high yields.
Our Methodology
For this list, we screened for dividend stocks with yields higher than 3% as of May 13. From this group, we further refined our selection criteria by identifying stocks with a dividend growth streak of 10 years or more. The stocks are ranked in ascending order of their dividend yields.
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20. Texas Instruments Incorporated (NASDAQ:TXN)
Dividend Yield as of May 13: 3.01%
Texas Instruments Incorporated (NASDAQ:TXN) is an American semiconductor company, headquartered in Texas. The company specializes in developing analog chips and embedded processors. The stock has surged by over 1% since the start of 2025. Over the past year, the company has placed a strong emphasis on how it manages its capital, with the goal of ensuring stable free cash flow. As part of this approach, it has ramped up investments in research and development, while also expanding its manufacturing operations. It has been working to build closer ties with customers, leveraging its online platform, TI.com, to enhance these direct connections. In addition, its commitment to sustainability remains aligned with environmental standards, which not only helps its public image but also supports its long-term operational goals.
In the first quarter of 2025, Texas Instruments Incorporated (NASDAQ:TXN) reported $4.07 billion in revenue, marking an 11% increase compared to the same period the previous year. The company posted a net income of $1.18 billion, with earnings per share coming in at $1.28, beating analysts’ expectations by $0.18. For the second quarter, the company forecasts revenue in the range of $4.17 billion to $4.53 billion and expects EPS between $1.21 and $1.47. It also projects a tax rate of 12% to 13% for the quarter.
Texas Instruments Incorporated (NASDAQ:TXN) continued to generate strong cash flow, which has supported returns to shareholders. Over the past 12 months, it recorded $6.2 billion in operating cash flow and $1.7 billion in free cash flow, reflecting the strength of its operations, robust product offerings, and efficient 300mm manufacturing. During this period, Texas Instruments allocated $3.8 billion toward R&D and SG&A expenses, invested $4.7 billion in capital projects, and returned $6.4 billion to shareholders.
Texas Instruments Incorporated (NASDAQ:TXN) currently pays a quarterly dividend of $1.36 per share and has a dividend yield of 3.01%, as of May 13. The company has been growing its payouts for 21 consecutive years, which makes it one of the best dividend stocks on our list.
19. Cullen/Frost Bankers, Inc. (NYSE:CFR)
Dividend Yield as of May 13: 3.06%
Cullen/Frost Bankers, Inc. (NYSE:CFR) is an American financial holding company that offers customers commercial and consumer banking services. The company hiked its quarterly dividend by 5.3% on May 1 to $1.00 per share. Through this increase, it stretched its dividend growth streak to 32 years, which makes CFR one of the best dividend stocks on our list. In addition to strong dividend growth, the stock offers an attractive dividend yield of 3.06%, as of May 13.
As of March 31, Cullen/Frost Bankers, Inc. (NYSE:CFR) held roughly $52 billion in total assets. In its most recent earnings update, the company announced plans to open its 199th branch in the Fort Worth area within the coming month, with the landmark 200th location to follow in Pflugerville, just outside Austin. These new branches mark a significant milestone, as the company has increased its branch count by more than 50% since launching its organic growth strategy in December 2018. The stock has climbed by over 21% in the past year.
For the first quarter of 2025, Cullen/Frost Bankers, Inc. (NYSE:CFR) reported $560.4 million in revenue, reflecting a 7.2% year-over-year increase and beating Wall Street estimates by $18.8 million. Net interest income rose to $416.2 million, up from $390 million in the same quarter last year. The company also reported growth in total assets, which increased to $41.6 billion from $40.7 billion in the first quarter of 2024.
18. The Hershey Company (NYSE:HSY)
Dividend Yield as of May 13: 3.21%
The Hershey Company (NYSE:HSY) is a Pennsylvania-based multinational confectionery company that is known for its chocolates, snacks, and pantry items. The company faced near-term challenges from reduced calorie consumption due to Ozempic and rising cocoa costs from poor harvests. The stock has declined by over 22% in the past 12 months. However, its long-term outlook remains stable thanks to diversified product offerings and pricing power to offset higher input costs.
In the first quarter of 2025, The Hershey Company (NYSE:HSY) reported revenue of $2.8 billion, which, though, fell by 13.7% YoY, beat analysts’ estimates by $11.9 million. The EPS of $2.09 also beat consensus by $0.16. The company’s quarterly consumption surpassed expectations across both its US Candy, Mint, and Gum segment and its Salty Snacks category, fueled by strong seasonal demand and the continued success of products like Dot’s and SkinnyPop. Although cost pressures remain elevated, management emphasized that the company’s solid balance sheet provides the flexibility to invest in growth initiatives and pursue recent strategic acquisitions, which enhance its better-for-you offerings and support long-term value creation.
The Hershey Company (NYSE:HSY) ended the quarter with over $1.5 billion available in cash and cash equivalents, up from $730.7 million at the end of December 2024. It is one of the best dividend stocks on our list as the company has raised its payouts for 15 years in a row. Currently, it offers a quarterly dividend of $1.37 per share and has a dividend yield of 3.21%, as of May 13.