2 Dividend-Paying Stocks and 1 ETF With Yields Over 3.5% to Buy in 2025

As an income investor, you're always on the lookout for investments that offer high dividends today and have the potential to continue generating substantial cash flow in the future. Diversification is key to building a robust income portfolio, and today, we'll highlight two dividend-paying stocks and one ETF with yields over 3.5% that you can consider adding to your portfolio in 2025.

1. Verizon Communications (VZ) - Yield: 6.7%
Verizon Communications is a telecommunications giant that provides wireless and broadband services to millions of customers across the United States. The company's strong network infrastructure and stable customer base support its high dividend yield and consistent dividend growth. Verizon has increased its dividend for 14 consecutive years, with a 10-year dividend growth rate of 3.5% (as of late 2024). The company's solid balance sheet and cash flow generation make its dividend sustainable in the long term.



2. Sunoco LP (SUN) - Yield: 7.2%
Sunoco LP is a leading independent retailer and marketer of motor fuel and convenience store products. The company's extensive network of retail fuel stations and wholesale fuel distribution operations generate stable cash flow, supporting its high dividend yield and consistent dividend growth. Sunoco has increased its dividend for 11 consecutive years, with a 5-year dividend growth rate of 10.5% (as of late 2024). The company's strong balance sheet and cash flow generation make its dividend sustainable in the long term.



3. Schwab U.S. Dividend Equity ETF (SCHD) - Yield: 3.7%
The Schwab U.S. Dividend Equity ETF offers a high dividend yield by focusing on U.S. companies with a record of consistent dividend growth. The ETF tracks the Dow Jones U.S. Dividend 100 Index, which includes high-dividend-yielding stocks in the U.S. with a record of consistent dividend growth. The ETF's dividend yield is supported by the strong fundamentals and consistent cash flow generation of its underlying holdings.

In conclusion, Verizon Communications, Sunoco LP, and the Schwab U.S. Dividend Equity ETF offer high dividend yields and strong prospects for future dividend growth. By adding these investments to your portfolio, you can create a diversified income stream that will provide you with financial security and peace of mind. As always, it's essential to conduct thorough research and consider your personal financial situation before making any investment decisions.