2 High-Yield Dividend Stocks Offering 7-8% Returns

For income-focused investors, dividend yields above 7% are a powerful draw—but such high payouts often come with risks. After analyzing the latest data, two companies stand out as compelling choices: Enterprise Products Partners LP (EPD) and Shutterstock, Inc. (SSTK). Both offer yields of 7-8% while maintaining Dividend Risk Scores of B or better, signaling sustainable payouts amid sector-specific challenges.

1. Enterprise Products Partners LP (EPD): A Steady 7% Yield in Energy Infrastructure

EPD, a master limited partnership (MLP), operates a sprawling network of 50,000 miles of pipelines and 250 million barrels of storage capacity, making it a critical player in oil and gas logistics. Its dividend yield of 7.0% is supported by a 4% annual increase in adjusted cash flow and a 51% payout ratio in 2025, which management aims to keep below 60% to ensure sustainability.

Key Strengths:
- Stable Cash Flow: MLPs like EPD benefit from fee-based contracts, reducing exposure to commodity price swings.
- Capital Returns: The company returned $1.1 billion to shareholders in 2024 via buybacks and dividends.
- Growth Pipeline: Expansion projects in renewables and hydrogen infrastructure could future-proof its cash flows.

Risks to Monitor:
- Energy Market Volatility: EPD’s MLP structure ties its earnings to energy demand, which could falter if oil prices slump.
- Regulatory Scrutiny: Environmental policies may impact pipeline projects.

2. Shutterstock, Inc. (SSTK): 7.8% Yield via Creative Content Dominance

SSTK, the digital content giant, delivers an eye-catching 7.8% dividend yield after a 10% dividend hike in early 2025. The stock’s appeal is amplified by its merger with Getty Images, creating a combined entity with $1.98 billion in annual revenue and $175 million in cost synergies.

Key Strengths:
- Market Leadership: The merger positions SSTK as the largest creative content platform, with over 300 million assets.
- Dividend Growth: The payout rose to $0.33 per quarter in 2025, fueled by a 15% revenue increase in 2024.
- Diversified Revenue: Licensing fees now account for 80% of revenue, with AI-driven tools like Shutterstock AI boosting margins.

Risks to Monitor:
- Merger Integration: Execution risks could disrupt cash flows if cost savings aren’t realized.
- Content Competition: Rivals like Adobe and Canva threaten market share.

Why These Stocks Over Others?

While Polaris Inc. (PII) offers a 7.7% yield, its declining recreational vehicle sales and 23.6% revenue drop in Q4 2024 raise sustainability concerns. Similarly, Altria Group (MO)’s 6.8% yield faces long-term headwinds from declining smoking rates.

EPD and SSTK, however, present a better risk-reward balance:
- EPD’s $9.9 billion EBITDA and MLP structure provide a defensive moat.
- SSTK’s merger-driven growth and 15% revenue growth in 2024 (despite a Q4 EPS miss) suggest resilience.

Conclusion: High Yields, Managed Risks

Both EPD and SSTK offer 7-8% dividend yields with moderate risk profiles (B-rated), making them standout picks for income investors. While no high-yield stock is risk-free, their fundamentals—stable cash flows for EPD, merger synergies for SSTK—bolster confidence.

Final Take:
- Investors seeking energy infrastructure exposure: EPD’s payout ratio of 51% and $63.8 billion market cap offer scale and predictability.
- Bettors on creative content consolidation: SSTK’s 7.8% yield and merger upside justify its premium.

Pair these picks with diversification (e.g., utilities or healthcare) to balance sector-specific risks. As always, monitor payout ratios and earnings trends—7-8% yields are enticing, but sustainability matters most.