Want to earn stable income in 2025? These 5 high-dividend US stocks are a must-know

Looking to seek stable cash flow in a volatile market? As the dividend expectations for U.S. stocks accelerate into 2025, many investors are beginning to focus on high-quality stocks that can consistently provide generous dividends. According to the latest market analysis, the overall dividend yield of the S&P 500 is only 1.2% (close to a 20-year low), but there are still many undervalued dividend stocks with yields over 5%. This article will take you in-depth into the top 5 U.S. stocks currently ranked by dividend yield, helping you build a more defensive investment portfolio.

Why the 2025 Dividend Environment Is Improving

Entering 2025, expectations for U.S. stock dividends have noticeably warmed. Many Wall Street investment banks predict that this year’s dividends for S&P 500 component stocks will grow by double digits—Goldman Sachs forecasts a 7% increase, Bank of America Securities is more optimistic with a 12% rise, and S&P Dow Jones Indices analysts estimate an average growth of about 8%.

The logic behind this is clear: Earnings growth is the main driver of dividends. Last year, the earnings per share (EPS) of S&P 500 components accelerated, typically with a lag of about three months, so this year’s dividend growth is expected to surpass the 6% level of 2024. According to forecasts, total dividends in 2025 will reach approximately $685 billion, a significant increase from $630 billion in 2024.

This means that even if stock prices remain stable, investors’ dividend income will increase due to improved corporate profits—making now an ideal time to allocate into high-dividend stocks.

In-Depth Analysis of the Top 5 U.S. Dividend Stocks

Based on current U.S. stock dividend rankings (as of January 23, 2025), the following five stocks stand out with solid dividend policies and strong fundamentals:

1. Enbridge (ENB) - A leader in energy infrastructure with 22 consecutive years of dividend increases

Enbridge is one of North America’s most important energy infrastructure companies, covering liquid pipelines, natural gas transportation, and renewable energy generation. Its core strength lies in 22 years of consecutive dividend growth, with a current payout ratio of 6.03%.

The company primarily locks in stable cash flow through long-term contracts, especially in its liquid pipeline segment responsible for transporting crude oil and liquids in Canada and the U.S. Recently, Royal Bank of Canada raised its target price to $63 (from $59), maintaining an “outperform” rating, reflecting market confidence in its dividend sustainability.

For investors seeking long-term stable cash flow, Enbridge’s 22-year dividend increase record is the best reassurance.

2. Verizon (VZ) - Defensive dividend stock from a telecom giant

Verizon is the largest telecom company by market cap in the U.S. and one of the Dow Jones 30 components, offering a dividend yield of 6.99% (the highest in this ranking). The company’s main business includes voice calls, fixed broadband, and wireless communications, with its subsidiary Verizon Wireless controlling the largest wireless market share in the U.S.

In Q4 2024, revenue was $35.7 billion, up 1.7% year-over-year, surpassing expectations, demonstrating the stability of its mature business. Although its stock price has fallen 35% over five years, the current 6.99% dividend yield is more attractive to new investors—typical of “cyclical stocks with dividend value.”

Bank of America maintains a “hold” rating with a target price of $45, implying the current stock price already has defensive value.

3. Brookfield Renewable (BEPC) - A rising star in renewable energy dividends

Brookfield Renewable owns the world’s largest pure renewable energy portfolio, with a total capacity of 6,707 MW, including 204 hydroelectric facilities, 28 wind farms, and 2 natural gas plants, operating across 13 electricity markets in Canada, the U.S., and Brazil.

In Q3 2024, revenue was $4.44 billion (up 19.62% YoY), though net profit was -$197 million (affected by seasonality and exchange rates), this does not impact its 5.60% dividend commitment. JP Morgan maintains an “overweight” rating with a target price of $28, indicating long-term growth potential.

This stock features business growth + dividend payout as dual drivers—benefiting from the long-term boom in renewable energy while providing stable cash returns. Despite a 16.23% decline over five years, it’s a good accumulation opportunity.

4. Realty Income (O) - The “monthly dividend machine” in real estate trusts

Realty Income is one of the largest single-tenant commercial REITs in the U.S., owning 12,237 properties with a leasable area of 236.8 million square feet, of which 12,111 are leased. The company locks in rental income through long-term net lease agreements, with a dividend yield of 5.80%.

In Q3 2024, revenue was $3.931 billion (up 30.91% YoY), net profit was $666 million, and EPS was $0.75. Its fundamental strength is solid. More importantly, Realty Income is famous for “monthly dividends”—meaning investors receive monthly income instead of quarterly, which is valuable for cash flow management.

Stifel analysts maintain a “buy” rating with a target price of $66.5. Although the stock has fallen 26% over five years, its stable leasing model and monthly dividends make it an ideal choice for retirement portfolios.

5. Vici Properties (VICI) - A high-dividend acquirer of entertainment assets

VICI Properties specializes in casino, hotel, and entertainment property trusts, owning 93 diversified assets, including 54 casinos and 39 other experiential venues across the U.S. and Canada. Notable properties include Caesars Palace, MGM Grand, and The Venetian.

In Q3 2024, revenue was $2.873 billion (up 7.2% YoY), net profit was $2.097 billion, with a dividend payout ratio of 5.89%. Barclays gives a “buy” rating with a target price of $36. Its latest market cap is $30.877 billion, with a P/E ratio of only 10.86—relatively inexpensive.

This stock’s features are low valuation + quality asset portfolio. It has risen 12.07% over five years and is the only stock in this ranking to have increased, reflecting market recognition of its value.

Key Financial Metrics Comparison of the 5 High-Dividend Stocks

How to Select Suitable Stocks from U.S. Stock ETF Dividend Rankings

Not all high-dividend stocks are suitable for every investor. Here is a systematic screening process:

Step 1: Industry and Fundamental Screening
Choose 2-3 leading companies within 1-2 industries of interest, focusing on cash flow adequacy, debt levels, and profit stability. Enbridge and Verizon come from traditional utilities with stable cash flow; Realty Income and VICI are from REITs with lease-backed income; Brookfield represents the emerging renewable energy sector.

Step 2: Long-term Dividend Policy Evaluation
Review the company’s dividend history over the past 5-10 years. Enbridge’s 22-year consecutive increase is the industry’s longest record; Realty Income’s monthly dividends are a distinctive policy; VICI, though with a shorter history, has rapid growth. Avoid companies with dividend payout ratios over 80%, as they lack room for adjustment.

Step 3: Reasonableness of Dividend Yield
Be cautious of yields over 8%—this may indicate overextension or financial difficulty. The 5-7% range in this ranking is reasonable, providing attractive income without excessive cash consumption.

Step 4: Stock Price Cycle and Entry Timing
For stocks with similar dividend yields, those with lower stock prices offer higher marginal yields. Verizon, Brookfield Renewable, and Realty Income have all experienced price adjustments over the past five years, creating better entry points. Refer to analyst target prices (each stock has clear ratings in the table above), and wait until the stock approaches support levels before building positions.

The Three Sources of Return from High-Dividend U.S. Stocks

Investing in these stocks yields not only from dividends:

1. Stable Cash Inflows — Regardless of market fluctuations, as long as the company remains profitable, dividends will continue. For example, Enbridge’s 22-year dividend growth record means it did not stop paying even during the 2008 financial crisis.

2. Dividend Growth Bonuses — As profits improve, dividends increase annually. Wall Street expects a 7-12% dividend growth in 2025, surpassing recent years. This is akin to a “risk-free raise” for holders.

3. Capital Appreciation Potential — The companies in this ranking are not sunset industries. Enbridge plays a key role in energy transition, Brookfield Renewable benefits directly from the renewable boom, and Realty Income and VICI benefit from the recovery in commercial real estate. Long-term, the combined returns of dividend income and stock appreciation are the most desirable.

Risks to Watch Out For

Although high-dividend stocks are defensive, they are not risk-free:

• Interest Rate Risk: If the Fed resumes rate hikes, high-dividend stocks may become less attractive, pressuring their prices.
• Dividend Cut Risk: If profits deteriorate (e.g., Enbridge faces oil price crashes or VICI faces entertainment industry downturns), dividends may be cut or suspended.
• Inflation Erosion: Nominal dividend values stay the same, but persistent high inflation erodes real purchasing power over time.
• Valuation Risk: Realty Income’s P/E of 51.45 is relatively high; attention is needed to whether lease agreements can sustain such valuation.

Summary

The 2025 U.S. dividend environment is at its best in years—profit growth accelerates, dividend expectations rise, and some quality stocks have adjusted valuations. By systematically analyzing U.S. stock ETF dividend rankings and applying the screening framework above, investors can find stocks with both cash flow and growth potential.

Enbridge’s stability, Verizon’s market position, Brookfield’s growth, Realty Income’s innovative dividend model, and VICI’s attractive valuation each have their own characteristics. Investors should tailor their portfolios based on risk tolerance and time horizon, rather than blindly chasing the highest yield.

Before investing, be sure to conduct thorough research, consider your financial situation and risk preferences, and consult professional advisors if needed. Remember, the best portfolio is not the one with the highest returns, but the one most suitable for you.