Best High Yield Dividend Stocks (January 2025)

For this screener, the filters for Dividend Yield greater than 5% and dividend CAGR (5Y) greater than 5% have been used. These companies present a constant dividend growth and high dividend yield. Moreover, all the stocks selected exhibit a fair value upside of over 25%, suggesting promising potential. 

Dividend Yield: A high dividend yield ensures a substantial return relative to share price, appealing to income-focused investors.

Dividend Growth Rate (CAGR 5 Yr): A consistent 5-year dividend growth rate, of 5% or more, signifies financial health, management confidence, and potential for future income growth.

Fair Value Upside: We considered only stocks presenting a Fair Value upside potential of at least 10%, based on InvestingPro’s fair value assessment. 

These stocks are attractive for both current income and long-term investment stability.

Data Sourced: 2nd January 2025

• Industry: Oil, Gas & Consumable Fuels
• Dividend Yield: 7.5%
• Dividend CAGR (5Y): 7.3%
• Fair Value Upside: 28.8% 

Cross Timbers Royalty Trust operates as an express trust in the United States. It holds 90% net profits interests in certain producing and nonproducing royalty and overriding royalty interest properties in Texas, Oklahoma, and New Mexico.

• Industry: Specialty Retail
• Dividend Yield: 5.8%
• Dividend CAGR (5Y): 25.0%
• Fair Value Upside: 10.2% 

Haverty Furniture Companies, Inc. operates as a specialty retailer of residential furniture and accessories.

• Industry: Banks
• Dividend Yield: 6.8%
• Dividend CAGR (5Y): 15.1%
• Fair Value Upside: 14.8% 

Home Loan Financial Corporation, a unitary thrift holding company, provides various banking products and services.

• Industry: Metals & Mining
• Dividend Yield: 6.0%
• Dividend CAGR (5Y): 15.3%
• Fair Value Upside: 33.1% 

CVR Energy Inc is engaged in petroleum refining and nitrogen fertilizer manufacturing.

• Industry: Textiles, Apparel & Luxury Goods
• Dividend Yield: 7.1%
• Dividend CAGR (5Y): 11.8%
• Fair Value Upside: 48.1% 

Caledonia Mining Corporation Plc primarily operates a gold mine. It also engages in the exploration and development of mineral properties for precious metals.

To initiate our screening process, we apply a filter for ‘dividend yield’ to narrow down our selection to stocks with a dividend yield exceeding 5%. This criterion serves as an initial threshold for identifying companies that offer attractive dividend payouts relative to their stock price.

Further, a filter for dividend compound annual growth rate (CAGR) of 5 years has also been incorporated in our stock screening criteria, which curates a list of only those companies that are consistently growing their payout ratios at 5% or more. 

Additionally, we seek stocks with a fair value upside of 25% or more, indicating potential for significant growth relative to their current valuation.

Here are the steps to finding top U.S.-based high yield dividend stocks easily using Investing Pro:

• Click on the Screener tool.
• Select ‘Dividend Yield’ as a filter parameter on the Screener page, and set the threshold value to greater than 5%.

• Select ‘Dividend CAGR (5Y) and set the value to greater than 5%. 
• For US-centric stocks, select ‘United States’ under the ‘Trading Region’ tab drop-down, and make sure to check (select) the ‘Primary Trading Item’ option.

• Select ‘Fair Value Upside (InvestingPro) greater than 25%. 

High yield dividend stocks are shares of companies that pay out a relatively high percentage of their earnings as dividends to shareholders. These stocks typically offer dividend yields significantly higher than the average yield in the stock market.

Investing in high yield dividend stocks can provide a steady income stream, especially appealing for retirees or those seeking passive income. They can also offer potential capital appreciation and help diversify an investment portfolio.

A high dividend yield typically refers to a yield significantly above the market average, which is often around 2-3%. High yield stocks usually offer yields of 4% or more.

Dividends are typically paid quarterly, though some companies pay monthly or annually. The frequency of dividend payments is determined by the company’s dividend policy.

Yes, high yield dividend stocks can also appreciate in value. While they may not grow as rapidly as non-dividend-paying growth stocks, many high yield stocks can offer moderate price appreciation along with their dividend income.