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Discover 3 Leading Dividend Stocks Yielding Up To 7.9%

Marcus LeeFriday, Jan 3, 2025 5:34 pm ET
9min read


As the stock market continues to face volatility, investors are seeking stable and reliable income sources. Dividend stocks have long been a popular choice for their ability to provide steady returns and protect against market downturns. In this article, we will explore three leading dividend stocks that offer yields up to 7.9%, providing investors with attractive income opportunities while maintaining a strong balance between capital expenditure and dividend payouts.



1. Ford Motor Company (F)
Ford Motor Company is a well-known automobile manufacturer that has been paying dividends to its shareholders for many years. With a dividend yield of 6.06% as of 2025, Ford offers an attractive income opportunity for investors. The company has a history of dividend growth, having increased its dividend for 12 consecutive years before a cut in 2020 due to the COVID-19 pandemic. Since then, Ford has resumed dividend increases, with a 20% hike in 2021 and a 10% hike in 2022.

Ford's dividend payout ratio is around 20%, indicating that the company has room to grow its dividend while maintaining a healthy balance between dividends and reinvestment in the business. The company's focus on electric vehicles and cost-cutting measures also contributes to its long-term sustainability and dividend growth prospects.



2. PennantPark Floating Rate Capital (PFLT)
PennantPark Floating Rate Capital is a business development company (BDC) that specializes in investing in the debt and equity of small- and middle-market companies. With a monthly dividend yield of 11.25%, PennantPark offers one of the highest yields in the market. The company has a history of dividend growth, with a 5-year dividend growth rate of around 5%.

As a BDC, PennantPark focuses on investing in floating-rate loans, which provide protection against rising interest rates. The company's diversified portfolio and stable income stream support its high dividend yield and dividend growth prospects. Additionally, PennantPark's monthly dividend payments provide investors with a consistent income stream.

3. Altria Group (MO)
Altria Group is a tobacco products company with a long history of dividend growth. With a dividend yield of 7.8% as of 2025, Altria offers an attractive income opportunity for investors. The company has increased its dividend for 53 consecutive years, with a 10-year dividend growth rate of around 8%. Altria's dividend payout ratio is around 67%, indicating a healthy balance between dividends and reinvestment in the business.

Altria's focus on reducing smoking rates and expanding into reduced-risk products, such as oral tobacco and nicotine pouches, contributes to its long-term sustainability and dividend growth prospects. The company's strong brand portfolio and stable cash flows further support its ability to maintain and grow its dividend payments.



In conclusion, Ford Motor Company, PennantPark Floating Rate Capital, and Altria Group are three leading dividend stocks that offer yields up to 7.9%. These companies have demonstrated a history of dividend growth and maintain a strong balance between capital expenditure and dividend payouts. By investing in these dividend stocks, investors can generate attractive income while maintaining a long-term perspective on their portfolios.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.