10 Wall Street's Favorite Dividend Stocks for 2025 With 4% Yields

Short-term interest rates remain elevated, offering savers the opportunity to earn yields exceeding 4% on savings accounts. However, for those with specific investment objectives, stocks offering attractive dividend yields may also be a compelling option to explore.

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Investing in dividend-paying stocks allows shareholders to benefit from regular payouts that have the potential to increase over time. This possibility assumes that the underlying companies are well-managed and maintain their competitive edge. Additionally, growing profits and dividends often contribute to higher stock prices over the long term, creating the potential for both income and capital appreciation for investors.

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For individuals looking to steer clear of the stock or bond markets, the current landscape offers a favorable environment for savers. The Federal Reserve has implemented two federal funds rate cuts since September, bringing the rate to a target range of 4.5% to 4.75%. While this creates an advantageous backdrop for savers, political pressures continue to influence calls for further rate reductions.

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For those interested in dividend-paying stocks, numerous mutual funds and exchange-traded funds (ETFs) focus specifically on these assets. These vehicles can provide diversified exposure to companies offering steady income streams. In upcoming analyses, we plan to delve into some of these funds. Today, however, we spotlight individual stocks that are not only highly regarded by analysts but also offer dividend yields of at least 4%.

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Screening for Dividend Stocks

The starting point for this analysis was the S&P Composite 1500 Index, which comprises the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600. Among the 1,500 companies in this index, 146 currently offer trailing dividend yields of at least 4%, according to TradeAlgo.

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To refine this list, we applied specific criteria. First, we focused on companies covered by at least five analysts from brokerage firms surveyed by FactSet. Only stocks with a majority "buy" or equivalent ratings were included. Additionally, we excluded companies that had cut their regular quarterly dividends at any point in the past five years, ensuring a focus on firms with a consistent history of maintaining or increasing payouts.

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This process yielded 10 standout dividend stocks, each offering not only high yields but also significant upside potential over the next year based on consensus price targets. Below are the details of these stocks:

It is important to note that any stock screen represents a snapshot in time. Before investing, you should conduct your own research to evaluate the long-term sustainability and growth prospects of any company you consider.

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Examining a company’s financial health, competitive position, and industry trends can provide deeper insights into its future potential. One simple way to start is by exploring detailed information available through stock ticker links and financial reports.

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Dividend-paying stocks can be an excellent addition to an investment portfolio, offering a blend of income and growth potential. Whether you are a conservative saver capitalizing on high-interest savings accounts or an investor seeking higher returns through dividend stocks, aligning your strategy with your financial goals and risk tolerance is crucial.

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