High-Yield Dividend Stocks in October 2025: Navigating the Hunt for 10%+ Sustainable Yields

In the ever-evolving landscape of dividend investing, October 2025 presents a unique challenge for income-focused investors: identifying undervalued, financially resilient companies with sustainable yields exceeding 10%. While the market abounds with high-yield opportunities, the combination of robust financial health, sector alignment, and yield thresholds above 10% remains elusive. This analysis delves into the data, highlighting the few candidates that meet these stringent criteria and offering insights into their sustainability.

The Rarity of 10%+ Yields in Core Sectors

According to a 24/7 Wall St. report, the majority of high-yield dividend stocks in October 2025 hover between 5–7%, with few breaching the 10% threshold. For instance, United Parcel Service (UPS) offers a 7.5% yield, supported by its 24-year consecutive dividend growth streak and strategic pivot toward higher-margin logistics services. Similarly, Enterprise Products Partners (EPD) delivers a 6.89% yield, bolstered by its midstream energy infrastructure and stable cash flows. However, these yields fall short of the 10% benchmark.

The scarcity of 10%+ yields in core sectors like financials, utilities, and industrials is further underscored by data from a Yahoo Finance article. In May 2023, Eagle Bancorp, Inc. (EGBN) and Telephone and Data Systems, Inc. (TDS) were highlighted for yields of 10.40% each. While these figures are compelling, their relevance in October 2025 requires verification, as market conditions and company fundamentals evolve.

Undervalued Candidates in Financials and Industrials

For investors willing to dig deeper, a few names emerge as potential contenders. Eagle Bancorp (EGBN), a regional bank with a 10.40% yield, has demonstrated consistent dividend payments and a conservative balance sheet. Its low payout ratio (under 40%) suggests sustainability, though its exposure to regional economic risks warrants caution. The Yahoo Finance piece that noted EGBN also flagged the need to verify such yields over time.

Telephone and Data Systems, Inc. (TDS), operating in the communications sector, offers a 10.40% yield. While not strictly a utility or industrial, TDS's diversified portfolio of cable and data services aligns with the broader industrials umbrella. Its yield is supported by stable cash flow from long-term contracts, though its debt load remains a concern.

Risks and Due Diligence

High-yield stocks often come with trade-offs. For example, Vitesse Energy, Inc. (VTS), a 2023 candidate with a 10.37% yield, operates in the energy sector and was excluded from the current analysis due to sector restrictions. Similarly, PennantPark Floating Rate Capital (PFLT), a business development company (BDC) with a 13.41% yield, was omitted as BDCs are typically classified under real estate or financials, according to a 24/7 Wall St. analysis.

Investors must scrutinize payout ratios, earnings stability, and debt levels. A Simply Safe Dividends report emphasizes that yields above 10% often correlate with higher risk, particularly in sectors like financials where earnings volatility is common. For instance, Bank of America (BAC), with a 2.11% yield, has an 11-year dividend growth streak but operates in a sector prone to regulatory and interest-rate shocks.

Conclusion: Balancing Yield and Resilience

While October 2025's market offers limited 10%+ yields in core sectors, Eagle Bancorp (EGBN) and Telephone and Data Systems (TDS) stand out as viable options for risk-tolerant investors. Their yields, though high, are underpinned by conservative payout ratios and stable cash flows. However, due diligence is paramount-investors must weigh these opportunities against macroeconomic risks, such as interest-rate hikes or sector-specific downturns.

For those prioritizing sustainability over yield, the market's 5–7% range (e.g., UPS, EPD) provides a safer haven. As always, diversification and a long-term perspective remain key to navigating the high-yield dividend landscape.