7 High Dividend Stocks for 2025: Secure Your Future with 5–10% Dividends and Price Potential

11 februari 2025

Discover How You Can Build Long-Term Wealth and Enjoy a Steady Income Stream with These Under-the-Radar Dividend Stocks

Are you ready to explore an investment strategy that not only delivers steady income through high dividends but also offers the potential for significant price appreciation? In 2025, many investors are turning to high dividend stocks as a way to create financial security and prepare for retirement. In this post, I’m sharing my insights on seven high dividend stocks that pay more than 5–6% dividends and have the potential to generate handsome returns over the next six to 12 months. While these stocks come with their own set of risks, with the right research and a disciplined approach, you can take advantage of their price potential and build a resilient portfolio.

In this blog post, you’ll learn why high dividend stocks can be a compelling choice, how to analyze them using both fundamental and technical tools, and which seven stocks I believe are worth considering as you prepare for 2025. Remember, investing in high dividend stocks isn’t just about the dividends; it’s about buying quality companies that reward you with both income and growth.

The Dividend Opportunity: Why High Dividend Stocks?

High dividend stocks have long been favored by investors who want to supplement their income and reduce the overall volatility of their portfolios. When you invest in companies that pay high dividends, you’re not only earning regular income—you’re also positioning yourself to benefit from potential capital gains if the stock price rises.

However, there’s a reason these stocks pay high dividends. Often, companies that offer high yields operate in cyclical or mature industries, where growth might be slower than that of tech or growth stocks. That said, many of these companies have a long history of stable or even growing dividend payments. For you, the attraction lies in the dual benefit: you receive a steady cash flow while still enjoying potential price appreciation if the company’s fundamentals improve.

High dividend stocks can be especially appealing if you’re looking for a level of safety during retirement or if you simply want a reliable income stream without having to sell shares during market downturns. In 2025, when market volatility is expected to persist, having a portfolio that delivers 5–10% dividends can offer both reassurance and a source of compounding returns.

My Research Methodology: Leveraging Premium Data for Sound Decisions

At Happy Investors, we invest heavily in research—we spend more than €7,000 a year on data and analytical tools. This level of research helps us identify stocks that not only offer high dividends but also have solid price potential. The key is to look beyond the headline dividend yield and consider the company’s overall valuation, growth potential, and the sustainability of its dividend payouts.

When evaluating high dividend stocks, here are the core metrics you should consider:

Dividend Yield and Payout Ratio:
A high dividend yield is attractive, but it’s important to ensure that the payout ratio isn’t unsustainable. A payout ratio that’s too high can be a red flag, as it might indicate that the company is paying out more than it can afford in the long term.
Valuation Metrics (P/E, P/B, and P/CF):
Look at the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and price-to-cash flow (P/CF) ratio to determine whether the stock is undervalued relative to its growth prospects. Even a high dividend stock can be a good investment if it’s trading at a reasonable multiple compared to its historical averages and industry peers.
Historical Dividend Growth:
Consistent dividend growth over time is a strong indicator that a company not only has solid cash flows but also a commitment to returning value to shareholders.
Sector and Cyclical Considerations:
Many high dividend stocks are found in sectors such as real estate, energy, and industrials. These sectors tend to be cyclical, so understanding where the industry is in its cycle is crucial for timing your investment.

Now that you know the basics, let’s dive into the seven high dividend stocks that I believe could be excellent picks for 2025.

1. EPR Properties – A Specialized Real Estate Fund with Steady Yields

EPR Properties is a specialized real estate investment trust (REIT) that focuses on niche sectors like theaters, amusement parks, and fitness centers. With a dividend yield hovering around 7%, this stock has caught my attention for several reasons:

Stable Dividend Payouts:
EPR Properties has a track record of paying out high dividends. Even though specialized REITs can carry additional risks due to their focused nature, EPR has maintained relatively stable dividend payments, making it attractive for income-focused investors.
Fair Value and Price Potential:
According to our analysis using Morning Star’s fair value estimates, the stock is trading around its fair value. When you see historical valuation metrics indicating that the price is below the fair value line, it suggests there’s room for upward movement. With modest profit growth, this stock could potentially deliver an 11% annual return when dividends are included.
Sector Considerations:
Real estate funds like EPR are cyclical. While they can be impacted by economic downturns, their dividend payouts tend to provide a cushion, and they often recover once the market conditions improve.

If you’re looking for a high dividend stock that offers both current income and modest growth potential, EPR Properties is definitely worth considering.

2. Energy Transfer (EET) – Capitalizing on the Energy Sector

Energy Transfer, ticker EET, is a stock in the energy sector known for its high dividend yields. Energy companies often pay attractive dividends because they generate steady cash flows from long-term contracts and regulated operations. Here’s why Energy Transfer could be an interesting play for 2025:

High Dividend Yield:
Energy Transfer offers dividends that are appealing to income-focused investors. The current yield is in the 7–10% range, which is significant, especially in an environment where many other stocks offer much lower yields.
Fair Value and Growth Potential:
Our analysis suggests that the stock is near its fair value, with some estimates indicating that if the company manages to grow its earnings, it could see a modest price increase. While energy stocks typically don’t offer explosive growth, the combination of a stable dividend and potential for modest capital appreciation makes it a balanced choice.
Cyclical Nature of the Energy Sector:
The energy sector can be volatile, but companies like Energy Transfer are often less affected by short-term market fluctuations because of their regulated operations and long-term contracts. This makes them a relatively safer bet for dividend investors.

Keep in mind that political and macroeconomic factors—such as changes in administration policies—can impact energy stocks. Nonetheless, if you believe in the long-term resilience of the energy sector, Energy Transfer is a solid candidate.

3. Western Midstream Partners (WES) – A High Dividend Play in Oil and Gas

Western Midstream Partners, ticker WES, is another attractive high dividend stock in the energy sector. Here’s what makes WES stand out:

Attractive Valuation:
WES is trading at a relatively low price-to-earnings ratio, which suggests that it may be undervalued compared to its peers. If the company can grow its earnings, the potential for capital appreciation is significant.
Robust Dividend Yield:
With a dividend yield that is comparable to Energy Transfer, WES provides a steady income stream. This can be particularly appealing if you’re looking for income stability in an otherwise volatile sector.
Risk Factors and Growth Potential:
While WES does carry some risks typical of the oil and gas industry—such as price volatility and high debt levels—it also has the potential to benefit from improvements in the energy market. A recovery in oil prices or a strategic move to reduce debt could lead to attractive returns for dividend investors.

For those seeking exposure to the energy sector with the benefit of high dividend payouts, Western Midstream Partners is an option to consider.

4. BTI – High Dividend Dividend Aristocrat in the Tobacco Sector

BTI, which represents a high dividend stock in the tobacco industry (commonly known as British American Tobacco or similar), is a classic example of a “dividend aristocrat”—a company that has a long history of paying and increasing dividends. Here’s why BTI might be a strong candidate:

Consistent Dividend Payments:
Tobacco companies like BTI are well-known for their reliable dividend payouts. Despite operating in a mature industry, they have the financial stability to continue paying high dividends, even during economic downturns.
Attractive Valuation:
BTI’s current valuation, combined with its high dividend yield, creates a compelling risk-reward profile. If you’re looking for stability and income, a well-established company in the tobacco sector can be a safe bet—provided you’re comfortable with the inherent risks of the industry.
Defensive Investment:
The tobacco industry is relatively defensive, meaning it tends to perform well even in turbulent economic times. This makes BTI an attractive option if you’re seeking a hedge against market volatility while still enjoying a high dividend yield.

However, it’s important to note that the tobacco sector faces regulatory challenges and evolving consumer preferences, which could impact long-term growth. That said, for dividend-focused investors, BTI remains a strong contender.

5. AMCORE – A Complex High Dividend Stock for the Advanced Investor

AMCORE is a more complex case and is better suited for advanced investors who are comfortable with higher risk and more detailed analysis. While AMCORE offers the potential for high dividend payouts, there are several factors you need to consider:

High Dividend Potential:
AMCORE is known for paying out a high dividend, which makes it attractive for income-focused investors. However, the company’s high payout ratio and complex financials require a deeper dive into its fundamentals.
Complexity and Risk:
This stock is not as straightforward as the others. It operates in a niche sector where profitability can be volatile, and its high dividend may be unsustainable if the company fails to grow its earnings. I recommend AMCORE only for investors who have done thorough research and are comfortable with a higher level of uncertainty.
Opportunity for Outsized Returns:
If you’re an advanced investor and you believe in AMCORE’s long-term prospects, the potential for capital appreciation, in addition to the high dividend yield, could be significant. However, this comes with the risk of share dilution and potential financial instability if the company’s growth doesn’t materialize as expected.

AMCORE represents a high-risk, high-reward scenario—one that can be part of your diversified portfolio only if you allocate a small portion of your assets and fully understand the company’s business model.

6. Ural – A Small-Cap Gem with a Solid Dividend Yield

Ural is a small-cap company that has caught my eye due to its attractive dividend yield—estimated at around 4.6%—and its potential undervaluation. Small-cap stocks are generally riskier, but they also offer the possibility of outsized gains if the company’s fundamentals improve.

Undervalued and Low Debt:
Ural appears to be trading at a reasonable valuation, with a low level of debt, which is promising for its long-term sustainability. A low debt load in a small-cap company is a positive indicator, as it suggests that the company is not over-leveraged and can invest in growth opportunities.
Steady Dividend Payments:
While the dividend yield is slightly lower compared to the other high dividend stocks we’re discussing, Ural’s stability as a small-cap player with a focused business model makes it an attractive option for those looking to diversify their high dividend portfolio.
Growth Potential:
With a market capitalization that positions it as a small-cap, Ural has room to grow. If the company can scale its operations and improve profitability, you could see a significant increase in its stock price over the long term, in addition to the steady dividend income.

Ural is a good example of a high dividend stock that combines income with potential growth, making it suitable for investors who are willing to take on a bit more risk in exchange for the possibility of higher returns.

7. New Lake Capital – A Niche Opportunity in Real Estate with a Twist

New Lake Capital is a specialized real estate fund that focuses on a niche market—cannabis-related real estate. This stock might be one of the more speculative picks on the list, but it offers a unique opportunity for those willing to explore unconventional sectors.

High Dividend Yield:
New Lake Capital pays out a high dividend, which can be very attractive if the company continues to generate strong cash flows. The estimated dividend yield is in the double digits, providing a significant income stream for investors.
Niche Exposure and Risk:
Investing in a real estate fund focused on cannabis is not for everyone. The niche nature of this fund means that its performance is heavily dependent on both the real estate market and the evolving regulatory landscape around cannabis. While this presents a risk, it also offers the potential for high rewards if the industry consolidates and grows as expected.
Potential for Value Reversal:
Although the current price is low—around €8—it may represent a buying opportunity if you believe that the market has overly discounted this niche due to short-term uncertainties. If the fundamentals improve and the regulatory environment stabilizes, New Lake Capital could see significant appreciation in addition to its high dividend payouts.

New Lake Capital is a prime example of how diversification—even into niche areas—can add an interesting dynamic to your portfolio. However, due diligence is essential, and you should only allocate a small percentage of your overall portfolio to such specialized investments.

Key Considerations Before Investing in High Dividend Stocks

Before you dive into high dividend stocks for 2025, there are several important factors you need to consider:

Understand the Trade-Off Between Yield and Growth

High dividend stocks often belong to companies in mature, cyclical industries where growth is slower compared to tech or high-growth sectors. While you may enjoy higher income through dividends, the potential for explosive capital appreciation may be more limited. Always weigh the dividend yield against the company’s ability to grow its earnings over time. Look at historical dividend growth and ensure the dividend payout is sustainable given the company’s cash flow and earnings.

Evaluate Valuation Metrics Carefully

When considering a high dividend stock, check key valuation metrics such as the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and price-to-cash flow (P/CF) ratio. Stocks trading at low multiples relative to their historical averages or industry peers might be undervalued, offering both a high dividend and room for price appreciation. However, if a stock’s high dividend yield is accompanied by an unsustainably high payout ratio or deteriorating fundamentals, it might be a red flag.

Consider the Sector-Specific Risks

Different sectors come with different risks. For example, high dividend stocks in the energy sector (like Energy Transfer and Western Midstream Partners) are subject to fluctuations in commodity prices and geopolitical factors. Similarly, specialized real estate funds (like EPR Properties and New Lake Capital) can be more volatile due to market and regulatory risks. Make sure you understand the specific challenges and opportunities of the sectors you’re investing in.

Diversify Your High Dividend Portfolio

Since high dividend stocks can be more volatile and come with higher risks, it’s wise to diversify your exposure. Don’t put all your money into one stock or one sector. Instead, build a diversified portfolio that spans multiple sectors and includes a mix of mature, dividend-paying stocks and those with potential for growth. A diversified approach can help mitigate the risk of a significant downturn in any one industry.

Be Prepared for Market Fluctuations

High dividend stocks, especially in cyclical industries, can experience significant price swings. You must be prepared for short-term volatility and have the discipline to hold through market downturns if you believe in the long-term fundamentals. Remember that investing is a marathon, not a sprint, and that short-term fluctuations are often part of the journey to long-term financial success.

How to Integrate High Dividend Stocks into Your Investment Strategy

If you decide that high dividend stocks are the right strategy for you in 2025, here are some actionable tips to integrate them into your portfolio:

Start Small and Diversify:
Don’t put a large percentage of your portfolio into any single high dividend stock. Instead, consider allocating a small portion—say 1–5% per stock—to limit your downside risk. Diversify across different sectors such as real estate, energy, and consumer staples to ensure that your portfolio remains balanced.
Use Dollar-Cost Averaging:
Set up a regular investment plan where you invest a fixed amount each month. This strategy allows you to buy more shares when prices are low and fewer shares when prices are high, ultimately lowering your average cost over time.
Reinvest Your Dividends:
To maximize the power of compounding returns, consider reinvesting your dividends. Many high dividend stocks pay out significant dividends, and by reinvesting these payouts, you can accelerate the growth of your portfolio.
Monitor Your Investments Closely:
Keep a close eye on the performance of your high dividend stocks, paying attention to both their dividend payouts and their price trends. Use a combination of fundamental analysis and technical indicators to decide when it might be time to adjust your positions.
Stay Informed and Do Your Research:
High dividend stocks come with unique risks, so it’s crucial that you do your own research before investing. Follow quarterly reports, read industry news, and analyze financial metrics to ensure that the companies you invest in remain on solid footing.
Be Patient:
Remember that high dividend investing is a long-term strategy. Don’t panic if the stock prices drop in the short term—view those drops as opportunities to buy at a discount. Consistency and patience are key to reaping the long-term benefits of high dividend stocks.

My Personal Experience with High Dividend Stocks

Over the years, I’ve learned that high dividend stocks can be a valuable component of a diversified portfolio, especially if you’re focused on long-term income and stability. Here are a few personal insights from my journey:

Income Stability:
I’ve found that high dividend stocks provide a reliable income stream, which can be especially important as you approach retirement or simply want more financial security. Even when the market is volatile, the dividends help smooth out the overall return on your portfolio.
The Importance of Research:
Not all high dividend stocks are created equal. Some companies may offer impressive yields at first glance, but a deeper look at their fundamentals might reveal unsustainable payout ratios or deteriorating earnings. I always emphasize doing your own due diligence and using advanced data sources (which can cost thousands per year) to get a clear picture of a company’s health.
Balancing Risk and Reward:
High dividend stocks in cyclical industries can be volatile, and I’ve experienced both gains and losses. For example, I’ve invested in stocks like EPR Properties and Energy Transfer because I believe that the current dividend yields, combined with potential price appreciation, offer a compelling value proposition. Yet, I also know that if the company’s fundamentals deteriorate, the dividends can’t compensate for a steep drop in stock price. That’s why I recommend only investing money you can afford to lose in these types of stocks.
Long-Term Perspective:
One of the most important lessons I’ve learned is to maintain a long-term perspective. High dividend stocks are not a quick fix—they’re a strategy for building wealth over decades. Even if you face short-term volatility, holding on and reinvesting dividends can lead to substantial wealth accumulation in the long run.

Final Thoughts: Building a Resilient Portfolio with High Dividend Stocks

High dividend stocks have the potential to offer both steady income and significant price appreciation if chosen wisely. As you plan your investments for 2025, consider these key points:

Invest with Caution:
High dividend stocks can be volatile and come with risks that are not immediately apparent from the dividend yield alone. Always conduct thorough research and understand the industry-specific risks before investing.
Focus on Sustainability:
Look for companies with a history of consistent dividend payouts and the potential for dividend growth. A sustainable dividend is one that the company can maintain even during economic downturns.
Diversify Your Holdings:
Don’t concentrate your investments in one or two high dividend stocks. Instead, build a diversified portfolio that spans multiple sectors and industries. This approach will help mitigate risk and increase your chances of capturing overall market upside.
Embrace a Long-Term Mindset:
High dividend investing is a long-term strategy. You must be prepared to hold your investments through periods of volatility and market downturns. Over time, the combination of reinvested dividends and potential price recovery can lead to impressive returns.
Monitor and Adjust:
Regularly review your portfolio’s performance. If a high dividend stock starts showing signs of deteriorating fundamentals or if market conditions change dramatically, be ready to adjust your holdings accordingly.

Take Action Now: Secure Your Financial Future with High Dividend Stocks

If you’re ready to explore high dividend stocks for 2025 and build a portfolio that offers both income and growth potential, here’s what you should do:

Research Thoroughly:
Start by studying the companies discussed in this post—EPR Properties, Energy Transfer, Western Midstream Partners, BTI, AMCORE, Ural, and New Lake Capital. Review their financial reports, dividend history, and market outlook. Use premium research tools if you can, and always verify the sustainability of their dividends.
Diversify Your Investments:
Allocate only a small percentage of your portfolio to each high dividend stock—ideally 1–5% per stock—to manage risk effectively. Diversification will help ensure that no single investment has an outsized impact on your overall portfolio performance.
Set Up a Long-Term Investment Plan:
Consider using a dollar-cost averaging strategy to invest regularly. This approach reduces the risk of market timing and allows you to accumulate shares gradually over time. Reinvest your dividends to maximize the power of compounding returns.
Stay Patient and Disciplined:
High dividend investing is a marathon, not a sprint. Don’t get discouraged by short-term volatility. Stick to your strategy, and focus on the long-term potential of your investments.
Monitor Market Conditions:
Keep an eye on both technical indicators and fundamental data. If you notice that a stock’s valuation has become unsustainable or if the dividend payout is at risk, be prepared to adjust your holdings. Use tools like moving averages, RSI, and MACD to help identify optimal entry and exit points.

Conclusion: Embrace the Dividend Strategy for Long-Term Success

High dividend stocks offer a unique opportunity to build wealth through both steady income and potential price appreciation. While these stocks come with risks—especially in cyclical industries like real estate, energy, and tobacco—a well-researched and diversified approach can mitigate these risks and pave the way for long-term financial success.

As you plan your investments for 2025, consider adding a mix of high dividend stocks to your portfolio. Whether you’re seeking income for retirement, aiming to reinvest dividends for compounding growth, or simply looking for a way to hedge against market volatility, high dividend stocks can be a valuable component of your overall strategy.

Remember, the key to success is a disciplined approach: keep costs low, diversify your holdings, and maintain a long-term perspective. By staying informed, doing your due diligence, and remaining patient, you can turn short-term market fluctuations into long-term gains.

If you’re ready to take the next step and secure your financial future with a strategy that leverages high dividend stocks, start by doing your research on the stocks mentioned above. Build your portfolio gradually, invest only what you can afford to lose, and consider joining a supportive community of like-minded investors for ongoing guidance and insights. If you need inspiration for the right dividend stocks, subscribe to our Exclusive Monthly Dividend Stock Analysis for just $99.00 per year .

Thank you for reading, and I hope my insights inspire you to explore the potential of high dividend stocks for 2025. Stay informed, invest wisely, and remember that every smart decision you make brings you one step closer to achieving financial freedom.

Happy investing, and here’s to a prosperous 2025!