High dividend stocks are attractive for income investors. With the average yield at just 1.3%, it has gotten harder to find suitable yields in the stock market. And with the Federal Reserve poised to cut interest rates at some point this year, yields on savings accounts and CDs are likely to decline as well.
Fortunately, there are still plenty of quality high dividend stocks to choose from. The following 3 stocks have high yields above 5%, and the ability to raise their dividends over time.
1. Verizon Communications (VZ)
Verizon Communications Inc (NYSE:) is one of the largest wireless carriers in the country. Wireless contributes three-quarters of all revenues, and broadband and cable services account for about a quarter of sales. The company’s network covers ~300 million people and 98% of the U.S.
The company continues to generate steady growth in 2025. In the first quarter, revenue grew 1.5% to $33.5 billion, which topped estimates by $220 million. Adjusted earnings-per-share of $1.19 compared favorably to $1.15 in the prior year and was $0.04 ahead of expectations.
Wireless retail postpaid phone churn rate remained low at 0.90%. Wireless revenue grew 2.7% to an industry-leading $20.8 billion while the Consumer segment increased 2.6% to $17.2 billion. Broadband totaled 339K net new customers during the period. The total fixed wireless customer base is more than 4.8 million. Verizon aims to have 8 to 9 million fixed wireless subscribers by 2028. Fios additions totaled 45K. Free cash flow was $3.6 billion for the quarter, up from $2.7 billion in the prior year.
Verizon reaffirmed prior guidance for 2025 as well, with the company expecting wireless service revenue to grow 2% to 2.8% for the year. The company is now expected to earn $4.69 per share in 2025, which should allow the company to continue raising its dividend.
One of Verizon’s key competitive advantages is that is often considered the best wireless carrier in the U.S. This is evidenced by the company’s wireless net additions and very low churn rate. This reliable service allows Verizon to maintain its customer base as well as give the company an opportunity to move customers to higher-priced plans. Verizon’s 5G service coverage area gives it an advantage over other carriers.
Verizon has increased its dividend for 20 consecutive years and the stock currently yields 6.4%.
2. Altria Group (MO)
Altria Group (NYSE:) is a tobacco stock that sells cigarettes, chewing tobacco, cigars, e-cigarettes, and more under a variety of brands, including Marlboro, Skoal, and Copenhagen, among others.
This is a period of transition for Altria. The decline in the U.S. smoking rate continues. In response, Altria has invested heavily in new products that appeal to changing consumer preferences, as the smoke-free category continues to grow.
The company also has a 35% investment stake in e-cigarette maker JUUL, and a 45% stake in the Canadian cannabis producer Cronos Group (NASDAQ:).
On April 29, 2025, Altria Group reported its financial results for the first quarter of 2025. The company posted net revenues of $5.26 billion, a 5.7% decline from the same period in 2024, attributed primarily to lower cigarette shipment volumes, which fell by 13.7%.
Despite this, adjusted diluted earnings per share (EPS) rose by 6% year-over-year to $1.23, surpassing analyst expectations of $1.19.
In the smokeable products segment, net revenues declined by 5.8%, but adjusted operating companies’ income increased by 1.2%, driven by higher pricing and lower manufacturing costs. The oral tobacco products segment saw a 0.5% increase in net revenues, supported by an 18% rise in on! nicotine pouch shipments.
Altria continued its shareholder return initiatives, repurchasing 5.7 million shares for $326 million and paying $1.7 billion in dividends during the quarter. The company reaffirmed its full-year 2025 adjusted diluted EPS guidance of $5.30 to $5.45, representing a 2% to 5% increase over 2024.
Altria ranks very highly in terms of safety because the company has tremendous competitive advantages. It operates in a highly regulated industry, which virtually eliminates the threat of new competition in the tobacco industry. Altria enjoys strong brands across its product portfolio, including the No. 1 cigarette brand. As a result, it has pricing power and brand loyalty.
Altria targets a dividend payout ratio of 80% of its annual adjusted EPS. This allows the company to reinvest sufficiently in its core business objectives, as well as reward shareholders with a rising dividend. The company has increased its dividend for 55 consecutive years and the stock currently yields 6.9%.
3. T. Rowe Price Group (TROW)
T. Rowe Price Group Inc (NASDAQ:), founded in 1937 and headquartered in Baltimore, MD, is one of the largest publicly traded asset managers. The company provides a broad array of mutual funds, sub-advisory services, and separate account management for individual and institutional investors, retirement plans and financial intermediaries.
T. Rowe Price had assets under management (AUM) of nearly $1.6 trillion as of Mach 31st, 2025.
On May 2nd, 2025, T. Rowe Price reported first quarter results for the period March 31st, 2025. For the quarter, revenue grew 0.6% to $1.76 billion, though this was $20 million less than expected. Adjusted earnings-per-share of $2.23 compared unfavorably to $2.38 in the prior year, but this beat estimates by $0.10.
During the quarter, AUMs of $1.57 billion grew 1.9% year-over-year, but decreased 4.2% sequentially. Market depreciation of $37.1 billion and net cash outflows of $19.2 billion were partially offset by increases in money market and multi-asset inflows. Operating expenses of $1.17 billion increased 0.3% year-over-year, but declined 7.0% quarter over-quarter.
T. Rowe Price’s earnings, as well as its dividends, have grown substantially over the last decade. While earnings did drop during the last financial crisis, the overall record has been solid. Since 2015, the company has grown earnings-per-share by an average compound rate of 8.1% per year.
Asset managers like T. Rowe have low variable costs. As a result, higher revenues, driven primarily by increasing assets under management, allow for margin expansion and attractive earnings growth rates. Assets under management grow in two basic ways: increased contributions and higher underlying asset values. While asset values are finicky, the trend is upward over the long-term.
On the contribution side, T. Rowe Price’s strong past performance is a key selling point and could attract customers going forward. In addition, T. Rowe has another earnings-per-share growth lever in the way of share repurchases.
TROW has increased its dividend for 39 consecutive years and shares are currently yielding 5.4%.
Get the full list of high-yield monthly dividend stocks here
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Disclosure: No positions in any stocks mentioned
