6 Top-Yielding Dividend Stocks To Buy And Future-Proof Your Income

Forbes

3 days ago

Passive income is the ultimate financial protection. And high-yielding dividend stocks are a great source for that low-maintenance cash flow. Choose the right companies, and you have a stream of rising cash payments you can reinvest or use to cover your bills.
Choosing the right stocks is always the trick with investing. The best dividend stocks for you should align with your goals and risk tolerance, but the six introduced here may be worthy candidates. All pay yields of at least 3%—that's more than double the S&P 500 average—and have grown their revenue, free cash flow, dividend payments and market capitalization over the last five years.
6 Best High-Yielding Dividend Stocks For Future Income
The table below highlights six top dividend stocks analysts love.
A review of each company follows. Metrics are sourced from company reports and stockanalysis.com, unless noted otherwise. For more investing ideas, see this list of the best stocks for 2025.
1. AbbVie (ABBV)
AbbVie by the numbers:
AbbVie is a global pharmaceutical company focusing on immunology, oncology, neuroscience, eye care and anti-aging treatments. AbbVie products are sold into 175 different countries.
AbbVie has long been a popular choice among dividend investors. The pharma company pays $6.56 per share annually, and has implemented yearly dividend raises for more than 50 years. ABBV's stock price has also doubled over the past five years.
AbbVie is successfully managing through the 2023 loss of patent protection on its hit product Humira. The strategy has included acquisitions and new immunology treatment launches. AbbVie merged with Botox-maker Allergan in 2020 to diversify its portfolio, and introduced Rinvoq and Skyrizi, which have now become top-selling treatments.
AbbVie's revenue dipped 6.4% in 2023 but has since returned to growth. The company now expects adjusted diluted EPS of $12.12 to $12.32 in 2025, up from $10.12 in the prior year.
2. Phillips 66 (PSX)
Phillips 66 by the numbers:
Phillips 66 is an oil and gas company with five operating segments: midstream, chemicals, refining, marketing and specialties and renewable fuels. The company's assets include 70,000 miles of pipeline systems, 11 refineries and 1.8 million barrels per day (BPD) of crude capacity. The fuel brand portfolio includes Phillips 66, Conoco, 76 and JET.
Phillips 66 pays shareholders $4.80 annually and has raised its dividend for 13 years. The company has also committed to keeping its dividend competitive and returning more than 50% of net operating cash flow to shareholders.
The remaining operating cash flow is earmarked for debt reduction, share repurchases and growth initiatives. Phillips 66 is targeting total debt of $17 billion by 2027, down from the year-end 2024 balance of $20.1 billion.
The focus on balance sheet health is appealing, as is Phillips 66's differentiated and integrated portfolio. Most of the EBITDA (38%) comes from refining, and the rest is split as double-digit percentages across marketing and specialties, midstream and chemicals. Over the last few years, Phillips 66 has made strategic divestitures and acquisitions to reduce costs, improve refinery utilization and improve overall value creation.
3. Chevron (CVX)
Chevron by the numbers:
Chevron is an integrated energy and chemicals company with two primary business segments: upstream and downstream. Upstream explores, develops, produces and transports crude oil and natural gas. Downstream refines and markets crude oil.
Chevron is a solid choice for dividend investors who can handle energy sector volatility, thanks to its 4.5% yield, paying $6.84, and a 38-year history of raising shareholder payouts.
The company is a major player in the global energy space and a top-five holding in Berkshire Hathaway's stock portfolio. Chevron relies on its integrated business model, financial strength and capital discipline to protect shareholder returns when oil prices decline.
Chevron also recently acquired Hess Corporation, which is expected to provide significant cost synergies and improve long-term shareholder returns. Chevron CFO Eimear Bonner said the acquisition should "drive significant free cash flow and production growth into the 2030s."
4. Nexstar Media Group (NXST)
Nexstar Media Group by the numbers:
Nexstar is a diversified media company that produces and distributes news, sports and entertainment programming via owned and partner television stations and a suite of websites and mobile applications. The company generates revenue from advertising sales and retransmission fees. Cable and satellite TV providers pay broadcasters retransmission fees to provide broadcast content to subscribing customers.
Nexstar pays an annual dividend of $7.44 per share and has raised its payout for 12 consecutive years. The company also spends a sizable portion of its adjusted free cash flow on share repurchases, which have reduced the share count by 34% since 2019.
Nexstar has the largest local station network among major broadcast network owners like Televisa Univision, TEGNA and Fox. The company also owns two popular national networks, the CW and News Nation. These properties reach a combined 186 million households. The breadth of the portfolio is a competitive advantage—it's appealing to advertisers and provides operating cost efficiencies.
Nexstar enjoys a high percentage of recurring revenue, high margins and strong cash flow. In 2024, recurring revenue was greater than 50%, the adjusted EBITDA margin was 37% and adjusted free cash flow topped $1.2 billion. The ad revenue is stable, but the digital portfolio and retransmission provide upside. Retransmission fees are negotiated at contract renewals, usually for three-year terms. In 2025, Nexstar will renew 60% of its subscriber base.
5. Fidelity National Financial (FNF)
Fidelity National Financial by the numbers:
Fidelity National Financial sells title insurance, closing and escrow services, annuities and life insurance.
Fidelity pays an annual dividend of $2 per share and has raised its payout annually for 13 years.
Title insurance is Fidelity's primary product, and the company enjoys top market share in the residential purchase, refinance and commercial markets. By state, Fidelity is the first or second market-share leader in 39 states. An industry-leading pretax title margin complements the strong competitive positioning and contributes to the company's strong free cash flow.
Majority-owned subsidiary F&G Annuities & Life has also performed well for Fidelity, producing strong annuity sales and contributing $89 million or 28% to second quarter adjusted net earnings.
6. Clearway Energy (CWEN) (CWEN.A)
Clearway Energy by the numbers:
Clearway develops clean energy projects and produces clean energy through its portfolio of wind and solar assets.
Clearway Energy has two share classes, A and C. The Class A shares (CWEN) have most of the voting power and higher trading volume. As a result, CWEN shares cost slightly more than CWEN.A shares. The distinction matters if you want to maximize your dividend yield. CWEN and CWEN.A have paid $1.71 per share over the past 12 months, but CWEN.A shares cost less and therefore have a higher yield.
Clearway Energy is interesting because the company has strong revenue and cash flow growth and a commitment to raising its dividend—all packaged nicely within the renewable energy space. The company is securing future growth by optimizing its assets with repowerings, retrofits and capacity expansions. Clearway Energy also partners with sponsors on projects and pursues acquisitions independently.
During its last earnings conference, Clearway raised its CAFD (cash available for distribution) guidance for the year and expressed confidence in meeting its 2027 CAFD per share targets.
Bottom Line
The best high-yield dividend stocks provide financial security. Opt for companies with a demonstrated commitment to increasing their dividends so you can enjoy those higher yields for years to come.