10 high-dividend stocks and how to invest in them
Dividends can be a great way to give your investment portfolio a boost of income, which is something many people are looking for during periods of high inflation and amid talk of a possible recession. Dividend stocks or dividend funds can help you earn regular passive income from some of the strongest companies in the economy.
Here are 10 high dividend stocks in the S&P 500 to consider for your portfolio and how to invest in them.
How to invest in dividend stocks and funds
When you’re looking for ways to receive regular dividend payments, you generally have two options: stocks that pay dividends and funds that hold stocks that pay dividends. Here’s how each one works.
Investing in a dividend stock is no different from investing in any other stock. You’ll need a brokerage account, which can easily be set up through an online broker, in order to place a trade. Once your account is set up and funded, you can choose which dividend stocks to invest in. Your broker may even be able to help you identify dividend stocks with large payouts through its research offering.
If you’re not quite sure which high-dividend stocks to choose, a dividend fund may be a better option for you. Mutual funds and exchange-traded funds (ETFs) focused on dividends hold a basket of stocks that pay dividends. Some of these funds focus on stocks with high dividend yields, while others look for companies that have consistently paid and grown their dividends over time.
By choosing a fund, you won’t have to worry about closely tracking the individual stocks in the portfolio because the fund’s diversification should shelter you from having too much exposure to a single stock.
High-dividend stocks: 10 dividend stocks to watch in 2025
All dividend and yield information is as of Dec. 12, 2024.
1. Altria (MO)
Altria is the name behind Marlboro cigarettes, one of the most recognized and popular tobacco brands in the world, and the company also owns a sizable stake in Anheuser-Busch InBev. Altria’s management has stated for years that it intends to pay out the vast majority of its earnings as dividends.
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Dividend yield: 7.5 percent
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Annual dividend: $4.08
2. Dow Inc. (DOW)
Dow is involved in the production of different chemicals that are used in a variety of industries. Its segments include packaging and specialty plastics, industrial intermediates and infrastructure, as well as performance materials and coatings. Dow is headquartered in Midland, Michigan.
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Dividend yield: 6.8 percent
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Annual dividend: $2.80
3. Pfizer (PFE)
Pfizer is a global pharmaceutical company that offers products that treat various cancers, vaccines against infectious diseases and a number of specialty care products. Its 2023 revenues fell more than 40 percent from 2022 to $58.5 billion due to significant declines in its COVID-19 vaccine and treatment products.