Top Dividend Stocks With High Yields: Key Insights for Investors

NEW YORK, NY – In a market where dividends are becoming increasingly popular, investors are seeking stocks with high yields for income. According to research from Ed Clissold of Ned Davis Research, over 80% of companies in the broader market currently pay dividends, with 324 of them increasing payouts in the past year.

This growing interest in dividend stocks stems from the belief that companies with a history of raising dividends often outperform the market in the long run. Clissold’s earlier findings ignited this trend, showing that firms consistently increasing their dividends provide substantial returns. However, recent updates to their methodologies indicate that high-yield stocks could promise even greater rewards.

The dividend yield, calculated by dividing the annual dividend by the current stock price, indicates the income an investor earns per dollar invested. Yet, financial advisers caution that high dividend yields can come with increased volatility. A decline in stock price can inflate yield numbers, indicating potential financial trouble. Careful examination of a company’s financial fundamentals is key to robust investment decisions.

Jason Alonzo, managing director at Harbor Capital Advisors, emphasized the importance of a strong balance sheet: “Make sure the company has a strong balance sheet and its prospects for earnings-per-share growth are strong, so the company is well-positioned to maintain dividend payments in the future even if there is a recession.”

One standout is Texas Instruments Incorporated (NASDAQ:TXN), which has raised its dividend for 21 consecutive years and offers a yield of 3.18%. For the first quarter of 2025, it reported revenue of $4.07 billion, marking an 11% increase year-over-year, with earnings per share at $1.28.

Another example is Medtronic plc (NYSE:MDT), a medical device company with a history of dividend increases. It currently pays a dividend of $0.70 per share, reflecting a yield of 3.35%. Medtronic is advancing its robotic surgery system, Hugo, and has submitted application for FDA approval, which holds significant revenue potential.

Meanwhile, The Clorox Company (NYSE:CLX) offers a yield of 3.62% with 22 consecutive years of dividend increases. Despite facing recent challenges including lower sales figures, its strong cash position and ongoing dividend policy remain stable.

Investors leaning towards dividend stocks are advised to consider companies with a long-term track record of stability and growth, as these stocks generally reflect a good balance of risk and return.