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3 High-Yield Dividend Stocks to Buy in 2025

Marcus LeeMonday, Jan 13, 2025 9:19 am ET

3min read

ABBV -- SE --

As the new year approaches, investors are looking for stable and reliable income sources. High-yield dividend stocks can provide a steady stream of income while also offering the potential for capital appreciation. Here are three high-yield dividend stocks to consider for your portfolio in 2025:

1. AbbVie (ABBV)
- Forward Dividend Yield: 3.63%
- Payout Ratio: 3.6%
- AbbVie is a large drugmaker that markets therapies targeting autoimmune diseases, cancer, migraine, and more. The company has a strong dividend history, with a 3.63% forward dividend yield and a 3.6% payout ratio. AbbVie's diverse product portfolio and visible growth potential contribute to the sustainability of its dividends. The company's acquisition of Seagen also positions it well for future growth.

2. Enterprise Products Partners (EPD)
- Forward Dividend Yield: 6.59%
- Distribution Coverage Ratio: 1.2x
- Enterprise Products Partners is a midstream energy company operating pipelines, natural gas processing facilities, and more. The company has a 6.59% forward dividend yield and a 1.2x distribution coverage ratio, indicating a strong commitment to returning capital to shareholders. EPD's diversified portfolio of midstream energy assets and history of increasing distributions for 26 consecutive years demonstrate its commitment to dividend growth and sustainability.

3. Pfizer (PFE)
- Forward Dividend Yield: 6.46%
- Payout Ratio: 5.2%
- Pfizer is a large drugmaker that markets therapies targeting autoimmune diseases, cardiovascular diseases, cancer, migraine, and more. The company has a 6.46% forward dividend yield and a 5.2% payout ratio, indicating a strong commitment to returning capital to shareholders. Pfizer's diverse product portfolio, strong balance sheet, and promising pipeline contribute to the sustainability of its dividends. The company's multiple new products and acquisition of Seagen also position it well for future growth.

These three high-yield dividend stocks offer attractive income and growth potential for investors in 2025. By considering the factors contributing to dividend sustainability, investors can build a more resilient portfolio that generates income and growth over the long term.

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