Buying and holding high-quality stocks is an excellent way to build wealth over the long term. Stocks represent an ownership, or equity, stake in a company. Over the long run, equities have historically provided higher total returns compared to conservative vehicles like bank savings or bonds. While they are considered more aggressive because they fluctuate based on market factors, they remain a premier bet for long-term horizons.
Capital appreciation, however, is not the only way to make money from stocks. Many companies distribute a portion of their earnings directly to shareholders via dividends. Since this income is usually paid on a predetermined schedule regardless of market volatility, it can provide a vital cushion during lean times.
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When markets become volatile, “individual investors can seek safer portfolios by overweighting low (volatility) stocks, or by investing in stocks where prices are not as high relative to dividends,” says Jonathan Ruane, senior lecturer in the Global Economics and Management group at the MIT Sloan School of Management. Historically, these high-dividend-paying stocks have tended to perform better in market downturns.
Many of these opportunities come from mature companies with stable market share in essential products. According to Gregory Harmon, assistant professor of Banking and Finance at Case Western Reserve University, this stability makes them “relatively resilient regardless of economic conditions,” positioning them as “consumer defensive stocks, which investors often seek during bearish market sentiment.”
However, investors must tread carefully. A high yield is not always a badge of health; sometimes, it is a warning sign. Harmon notes that an elevated yield can result from a “sharp decline in the stock price due to a company-specific crisis or a broader market shift away from its products,” which can signal a looming dividend cut. This happened to Intel Corp. (ticker: INTC) in the early 2020s, when a plummeting share price pushed the yield over 5% shortly before the company suspended the payout entirely in 2024.
Ruane further cautions that if too many investors chase “safety” in the same places, prices get bid up. Consequently, “the only stocks with low prices relative to dividends are those with unsafe dividends, making them a poor investment choice” for those seeking security. He suggests that while buying based on broad characteristics is fine, picking individual “safe” winners often requires the expertise of high-skill fund managers.
In short, dividend stocks provide a powerful mix of growth potential and consistency, provided you investigate why a yield is high before committing your capital. Here is a list of seven high-yield dividend stocks to buy today:
| STOCK | DIVIDEND YIELD |
| Annaly Capital Management Inc. (NLY) | 12.1% |
| Realty Income Corp. (O) | 5.7% |
| Vale SA (VALE) | 11.2% |
| AllianceBernstein Holding LP (AB) | 8.9% |
| Altria Group Inc. (MO) | 7.4% |
| Ambev SA (ABEV) | 12.8% |
| Kraft Heinz Co. (KHC) | 6.6% |
Annaly Capital Management Inc. (NLY)
When investors want income that isn’t bonds, real estate investment trusts (REITs) are often top of mind. These companies are designed to be income machines, required by law to distribute at least 90% of their taxable income to shareholders through dividends. NLY does this through quarterly dividend payouts with an impressive forward dividend yield of over 12%.
At nearly $16 billion, NLY is the largest publicly traded residential mortgage real estate investment trust (mREIT) around. It invests in agency and non-agency commercial mortgage-backed securities, called CMBS, and residential mortgage-backed securities, called RMBS. It also owns a large portfolio of mortgage servicing rights and invests in derivative mortgage securities such as forward mortgage commitments and credit risk transfer contracts.
The 90% distribution rule coupled with the company’s impressive revenue growth — analysts expect revenue to grow from $1.5 billion in 2025 to $2.4 billion in 2026 — makes NLY a superior high-yield dividend stock for income-oriented investors.
Realty Income Corp. (O)
Another REIT that deserves a spot on your dividend stock radar is Realty Income. While it doesn’t boast the same dividend yield as NLY, Realty Income does offer something NLY does not: monthly distributions.
The $52 billion company calls itself “The Monthly Dividend Company,” a title it has earned with 666 consecutive monthly dividend payouts. It’s also a member of the S&P 500 Dividend Aristocrats, which means it’s one of the elite S&P 500 stocks that has increased its dividend payout each year for at least 25 straight years. The primary reason it’s been able to do this is through its triple-net lease structure and smart tenant selection.
In a triple-net structure, the tenant pays all fluctuating costs, like sudden tax increases or roof repairs, in exchange for a lower base rent. This keeps Realty Income’s cash flow very stable, and shelters it from inflation costs because the tenants are responsible for labor and materials expenses when repairs are needed.
Realty Income’s portfolio includes 15,500 properties across the entire U.S., the U.K. and part of Europe. Most are retail properties in defensive segments that offer protection against economic downturns and e-commerce pressure, further insulating the portfolio’s income stream. So, if stability and monthly income are your aim, Realty Income could be your top name.
Vale SA (VALE)
Vale is an established leader in the production of iron ore and nickel. This $55 billion metals and mining firm also produces significant quantities of copper, manganese and coal.
In addition to its industrial metals business, Vale has interests in several gold, silver and platinum mines, giving the firm meaningful exposure to the precious metals markets.
Vale is unique in the mining industry because it has successfully combined its extraction and mining operations with an extensive transportation infrastructure. In other words, it doesn’t just mine for metals, it distributes them worldwide. Vale operates in more than 30 countries across five continents.
With that kind of market presence and its well-diversified commodities portfolio, Vale should remain a strong industry player for many years to come. The stock has a forward dividend yield of 11.2%.
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AllianceBernstein Holding LP (AB)
AB is a publicly traded money manager with a market cap of $4 billion. The company operates through two divisions: asset management and private wealth management.
The firm provides consulting services, wealth management, estate planning, investment research and strategic philanthropy services to businesses, institutions and ultra-high-net-worth individuals through a network of more than 50 branch offices around the world.
AB has approximately $860 billion in assets under management. The company invests in equities, fixed-income securities, derivatives, real estate securities and more. It also has a robust trading operation that trades foreign currencies, options, and agricultural and natural resource commodities.
The current forward dividend yield for AB is an impressive 8.9%.
Altria Group Inc. (MO)
While investing in a tobacco and alcohol company isn’t exactly in vogue these days, MO nonetheless belongs on this list of high-yield dividend stocks. It is the result of a 2008 spinoff from cigarette maker Philip Morris International Inc. (PM). Today MO is a $97 billion stock that offers many brands of cigarettes, cigars, pipe tobacco, smokeless tobacco and vaping products to U.S. smokers and tobacco users. In addition to its tobacco holdings, MO owns about 8% of Anheuser-Bush InBev SA/NV (BUD), the largest beer brewer in the world.
Although cigarette and tobacco consumption has decreased dramatically in the U.S. over the past several decades, Altria still benefits “from highly predictable demand and strong pricing power despite regulatory headwinds,” Harmon says. The company’s alternative products, like e-cigarettes and vaping devices, have also gained a large and loyal following which, to an extent, have made up for slowing tobacco sales.
The company just increased its dividend for the 60th time in the past 56 years. MO has a current forward yield of 7.4%.
Ambev SA (ABEV)
If you’re uncomfortable investing in tobacco but don’t mind a little booze in your portfolio, this beer and soft drink manufacturer may be up your alley. Ambev is the result of a massive merger between Brazilian giants Brahma and Antarctica and eventually became the majority-owned subsidiary of Anheuser-Busch InBev. Today, the $38 billion stock operates as the largest brewer in Latin America with a vast portfolio, including Budweiser, Stella Artois and Beck’s.
Although macroeconomic shifts in Brazil and Argentina have created currency headwinds over the years, Ambev still benefits from its huge distribution network and cost efficiencies, according to analysts. The company saw more than 7% growth in earnings per share (EPS) as of its latest earnings release, and its strong emerging markets exposure should support similar future growth, according to Harmon.
Unlike many U.S. firms, Ambev often pays dividends through “Interest on Equity,” a Brazilian tax-efficient method that rewards long-term holders. ABEV has a dividend yield of approximately 12.8%.
Kraft Heinz Co. (KHC)
The names Kraft and Heinz are probably familiar to U.S. investors. They combined into one company after Kraft Foods Group and H.J. Heinz Co. merged through a deal orchestrated by Warren Buffett’s Berkshire Hathaway Inc. (BRK.A, BRK.B) and 3G Capital. Today, KHC is a $29 billion stock that offers more than 200 iconic brands, including its namesake ketchup and macaroni and cheese, as well as Philadelphia cream cheese, Oscar Mayer meats and Jell-O, to households across the globe. In addition to its consumer brands, KHC remains a top-three global food and beverage company with a presence in nearly every major grocery category.
While rising inflation and private-label competition have put pressure on the company of late, Kraft Heinz still benefits from its broad portfolio and supply chain efficiencies. The company recently announced plans to separate into two more focused companies in the hopes of accelerating growth and further increasing shareholder value. One company will center around Heinz, Philadelphia and Kraft Mac & Cheese, while the other will include Oscar Mayer, Kraft Singles and Lunchables.
The company has maintained a consistent quarterly payout since 2016. It has a current forward yield of 6.6%.
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7 Best High-Yield Dividend Stocks to Buy Now originally appeared on usnews.com
Update 12/29/25: This story was previously published at an earlier date and has been updated with new information.
