2025 US Stock Dividend Income Opportunity Guide | 5 High-Yield Individual Stocks Selection

Why Is Now a Good Time to Allocate to High-Yield U.S. Stocks?

The investment market is always seeking balance. In 2024, the performance of U.S. stocks has been impressive, but behind this lies a phenomenon: as stock prices rise, the overall dividend yield of the market has decreased to 1.2%, approaching a 20-year low. For investors eager for stable cash flow, this presents an opportunity — among many stocks, there are still quite a few with an annual dividend yield exceeding 5%, undervalued by the market.

More importantly, Wall Street is optimistic about the dividend outlook for 2025. Goldman Sachs forecasts that earnings per share (EPS) of S&P 500 component stocks will grow by 11%, driving dividend growth of 7%. Bank of America Securities is even more bullish, expecting a dividend increase of 12%. S&P Dow Jones Indices analyst Howard Silverblatt estimates that the total dividends paid in 2025 will hit a record high of approximately $685 billion, further up from $630 billion in 2024.

How to Select Suitable High-Yield Stocks? Four-Step Stock Selection Method

To find high-yield stocks that meet your needs among many U.S. stocks, you can proceed step-by-step according to the following logic:

Step 1: Identify Industry Leaders

Within 1-2 industries of interest, select 1-3 leading companies. Deeply understand their financial status, profitability, and development prospects. The key is to confirm that their revenue is stable, cash flow is ample, and sustainable — which are the foundations for stable dividend payments.

Step 2: Filter for Stable Income

Among these companies, focus on those that have maintained relatively stable earnings despite experiencing 5-10 years of economic cycle fluctuations. Such companies’ dividend-paying capacity is more reliable and less likely to suspend or significantly cut dividends due to market volatility.

Step 3: Review Dividend History

Check the dividend records of candidate companies over the past few years. Prefer companies that have paid dividends steadily or increased dividends year over year. Also, understand their dividend policies, and exclude companies with low dividend frequency or unreasonable payout ratios.

Step 4: Benchmark Dividend Yield Levels

Calculate and compare the dividend yields of these companies. If a company’s dividend yield is low, analyze the reasons — whether it is responding to adverse conditions or if the funds are allocated elsewhere. Finally, refer to analyst ratings and expert opinions to avoid buying at the wrong time.

5 High-Yield U.S. Stocks to Watch in 2025

Market research shows that the following five companies have both attractive annual dividend yields and solid operational foundations:

1. Brookfield Renewable (BEPC) — Global Leader in Renewable Energy

This company owns the world’s largest pure renewable energy investment portfolio, with a capacity of 6,707 MW. Its assets include 204 hydroelectric facilities, 72 river system hydro stations, 28 wind farms, and 2 natural gas power plants, covering 13 electricity markets in Canada, the U.S., and Brazil, achieving excellent geographic diversification.

The Q3 2024 report shows revenue of $4.444 billion (up 19.62% YoY), with a net loss of $197 million. JPMorgan maintains an overweight rating with a target price of $28.00. The current dividend yield is 5.60%.

2. Enbridge (ENB) — Stable Energy Infrastructure Operator

Enbridge is a major North American energy infrastructure operator, involved in liquid pipeline transportation, natural gas transmission and storage, and renewable energy generation. The company has maintained dividend growth for 22 consecutive years, with a yield of 6.03%.

Recently, Royal Bank of Canada raised its target price to $63.00 (from $59.00) and maintained an “Outperform” rating. As a beneficiary of the energy transition era, this stock offers both income and growth potential.

3. Realty Income (O) — Real Estate Investment Trust (REIT) Rental Machine

This company focuses on single-tenant commercial real estate investments, owning over 12,237 properties with approximately 236.8 million square feet of leasable area. Its business model is based on long-term net lease agreements, ensuring a steady stream of rental income.

The Q3 2024 report shows revenue of $3.931 billion (up 30.91% YoY), net income of $666 million, and EPS of $0.75. Stifel analysts maintain a buy rating with a target price of $66.50. The dividend yield is 5.80%.

4. Verizon (VZ) — Cash Cow in Telecom

As a major U.S. telecom and Dow 30 component, Verizon’s business covers voice calls, fixed broadband, and wireless communications. Its subsidiary Verizon Wireless is the largest wireless service provider in the U.S.

Q4 2024 revenue was $35.7 billion, up 1.7% YoY, exceeding expectations. BofA Securities maintains a hold rating with a target price of $45. The current dividend yield is 6.99%, the highest among these five.

5. Vici Properties (VICI) — Long-term Leaseholder of Gaming Assets

Founded in 2016, the company owns 93 experiential assets, including 54 gaming properties in the U.S. and Canada, and 39 other entertainment facilities. Notable assets include Caesars Palace in Las Vegas, MGM Grand Hotel, and The Venetian Resort.

Q3 2024 revenue was $2.873 billion (up 7.2% YoY), net income of $2.097 billion, and EPS of $1.98. Barclays gives a buy rating with a target price of $36. The dividend yield is 5.89%.

Core Advantages of Investing in High-Yield Stocks

Investors choosing high-yield U.S. stocks can enjoy multiple benefits:

Generous Cash Returns — These companies have mature and frequent dividends, allowing holders to regularly receive tangible cash income without relying solely on stock price appreciation.

Solid Corporate Fundamentals — These companies are usually long-established, mature in operations, with ample cash flow and stable profitability, making their dividends less risky.

Capital Appreciation Potential — The companies are still developing, and their stock prices have upward potential. Investors can enjoy both dividends and capital gains.

Strong Risk Resistance — Compared to high-growth stocks, these companies are large-scale with clear market positions, performing relatively better during market volatility.

Portfolio Optimization — Allocating to high-yield stocks can effectively balance risks from over-concentration in high-growth sectors like technology, achieving more diversified asset allocation.

Risks to Be Aware Of

High-yield stocks are not entirely risk-free. Some companies, despite high current payout ratios, may face dividend adjustments or suspensions if they have high debt levels, unstable earnings, or questionable business models. Therefore, thorough research into their financial health and industry outlook is essential before investing, and decisions should be made cautiously based on your risk tolerance, rather than blindly chasing high yields.