Top High-Yield Income Stocks to Buy for Steady Passive Income in September 2025

As September 2025 unfolds, investors seeking steady passive income face a pivotal juncture. The Federal Reserve’s anticipated rate cuts—projected to begin in late September—signal a shift toward accommodative monetary policy, which historically boosts demand for high-yield equities over bonds [1]. Concurrently, U.S. inflation, while rising to 2.8% in July, remains below global averages, and core goods inflation remains subdued at 1.2% [3]. These dynamics create a fertile environment for dividend-paying stocks with robust earnings growth and sustainable payout ratios.

T. Rowe Price (TROW): A Financial Sector Powerhouse

T. Rowe Price Group, Inc. (TROW) stands out as a prime candidate for income-focused portfolios. With a dividend yield of 4.7%—significantly above the financial services industry average of 2.9%—TROW offers compelling returns [1]. Its Zacks Rank #1 (Strong Buy) designation underscores its financial strength, supported by a nearly 9% increase in earnings estimates over the past 60 days [3]. This growth trajectory reflects the firm’s ability to navigate market volatility while maintaining a disciplined approach to portfolio management. For investors prioritizing both yield and capital preservation, TROW’s combination of a high payout and strong fundamentals is rare [2].

Citizens Financial Services (CZFS): Banking Sector Resilience

Citizens Financial Services, Inc. (CZFS) exemplifies the resilience of regional banks in a shifting interest rate landscape. Its 3.2% dividend yield, exceeding the banking industry average of 2.5%, is bolstered by a Zacks Rank #1 rating and a 5.5% rise in earnings estimates [1]. The company’s forward-looking guidance projects $6.90 per share in 2025 earnings, reflecting a 14.81% year-over-year growth rate [2]. This momentum is driven by its focus on digital transformation and cost efficiency, positioning CZFS to capitalize on the Fed’s easing cycle while maintaining a stable income stream for shareholders.

Agnico Eagle (AEM): Mining’s Steady Hand

Agnico Eagle Mines Limited (AEM) may appear less glamorous than its financial counterparts, but its 1.1% dividend yield—surpassing the mining industry average of 0%—is a testament to its operational discipline [1]. A Zacks Rank #1 stock, AEM has seen a 7.6% increase in earnings estimates over the past 60 days, driven by its strategic expansion into high-grade gold reserves and cost optimization initiatives [3]. While its yield is modest, the context of an industry with no average payout makes AEM a standout for long-term income growth.

Contrasting with Long-Term Dividend Champions

While TROW, CZFS, and AEM shine with Zacks Rank #1 ratings, long-term champions like UnitedHealth (UNH) and Realty Income (O) present mixed signals. UnitedHealth, with a 2.9% yield, faces a Zacks Rank #5 (Strong Sell) due to a projected 19.5% decline in 2025 earnings [5]. Conversely, Realty Income (O) offers a robust 5.5% yield and a Zacks Rank #3 (Hold), but its recent quarterly EPS fell 26.7% year-over-year, raising concerns about sustainability [4]. These contrasts highlight the importance of prioritizing earnings momentum alongside yield when selecting income stocks.

Strategic Timing for High-Yield Investments

The current macroeconomic backdrop amplifies the appeal of high-yield stocks with strong fundamentals. The Morningstar US Value Index’s 5.05% outperformance in August 2025 underscores a market rotation toward value and income-generating assets [1]. With the Fed poised to cut rates, sectors like financials and real estate are likely to benefit, as lower borrowing costs reduce discount rates for future cash flows. For dividend stocks, this translates to higher valuations and enhanced income security.

In conclusion, TROW, CZFS, and AEM represent a rare trifecta of above-average yields, strong earnings growth, and favorable Zacks rankings. While O and UNH offer notable yields, their weaker fundamentals make them less compelling in a market increasingly favoring quality over quantity. As the Fed’s easing cycle gains momentum, now is a strategic moment to tilt portfolios toward these high-conviction, income-focused equities.

Source:
[1] Best Income Stocks to Buy for September 8th [https://www.nasdaq.com/articles/best-income-stocks-buy-september-8th]
[2] New Strong Buy Stocks for September 8th [https://www.zacks.com/commentary/2747423/new-strong-buy-stocks-for-september-8th]
[3] United States Inflation Rate [https://tradingeconomics.com/united-states/inflation-cpi]
[4] Should You Hold Onto O Stock in 2025 Beyond Its 9% YTD [https://finance.yahoo.com/news/hold-onto-o-stock-2025-144200189.html]
[5] September 2025 Stock Market Outlook [https://www.morningstar.com/markets/stock-market-outlook-where-we-see-investing-opportunities-september]