In this article we will take a look at eleven dividend stocks with over 5% yield that could rally in 2025.
As we move into the second half of 2025, investors are once again facing a volatile global financial environment. Markets have been rattled by rising geopolitical tensions, particularly between the U.S. and Iran, and a cautious outlook from the Federal Reserve. According to Bloomberg, Fed Chair Jerome Powell has warned of “meaningful” inflation driven by the Trump administration’s proposed tariffs, even as the Fed holds rates steady at 4.25%-4.5%. While policymakers still anticipate two rate cuts by year end, Reuters reports that projections now show slower GDP growth (1.4%), higher unemployment (4.5%), and inflation ending the year around 3%. Powell emphasized that decisions remain data dependent, with tariff driven price increases expected to pressure consumers in the coming months.
Equity markets reacted swiftly, Asian stocks fell over 1%, U.S. futures dipped, and Euro Stoxx 50 contracts dropped 0.7%. Meanwhile, Japan is trimming long term bond issuance by 10% to ease market concerns. As monetary and fiscal uncertainties compound, investors are turning to defensive strategies. In this environment, high-yield dividend stocks stand out as attractive income generating assets with built-in downside protection. This article presents 11 fundamentally strong dividend stocks with yields over 5% that could rally in 2025, offering both stability and upside in an otherwise unpredictable market.
In times of economic uncertainty, high yield dividend stocks often shine brightest. These income generating investments can offer a measure of stability, cash flow and downside protection, even as growth prospects remain murky. And in the current environment, where central banks are treading carefully and inflation remains a wildcard, dividend-paying companies with strong fundamentals and healthy payout ratios deserve a closer look.
In this article, we highlight eleven dividend stocks with yields over 5% that not only offer robust income potential but also have the resilience and value appeal to rally in 2025. Many of these companies are trading at attractive valuations, with forward P/E ratios and PEG multiples suggesting meaningful upside. Several also boast low debt profiles and strong balance sheets, key qualities for weathering inflationary pressures and rising financing costs.
From infrastructure and utilities to global industrials and emerging-market players, these stocks stand out for their combination of income and upside potential. Whether you are looking to hedge against volatility or simply seeking reliable total returns, these dividend stocks could be the financial anchors your portfolio needs in a stormy year.
Let’s take a look at the top eleven high yield dividend stocks that could thrive in 2025, despite all the uncertainty swirling around the global economy.
Our approach to determining the best Dividend Stocks
To identify the 11 dividend stocks with over 5% yield that could rally in 2025, we used stock screeners and up to date data as of June 19 to filter for fundamentally strong companies offering both reliable income and growth potential. We began with 20 stocks yielding above 5% and narrowed the list using three key criteria: a payout ratio under 50% to ensure dividend sustainability, a forward P/E ratio below 10 for attractive valuation, and a debt to equity ratio under 1.0 to reflect financial strength. The final picks are presented in ascending order of dividend yield.
11. Murphy Oil Corporation (NYSE:MUR)
Dividend Yield: 5.03%
Payout Ratio: 44.51%
Our list of 11 dividend stocks with over 5% yield that could rally starts with Murphy Oil Corporation (NYSE:MUR).With a solid dividend yield of 5.03% and a sustainable payout ratio of 44.51%, Murphy Oil Corporation (NYSE:MUR) stands out as one of the most promising dividend stocks that could rally in 2025. The company combines an attractive valuation with a forward P/E ratio of just 9.55, a PEG ratio of 0.97 and a debt to equity ratio of 0.43, along with strong operational momentum and a clear shareholder focused strategy.
Murphy Oil Corporation (NYSE:MUR) operates a diverse portfolio across the US, Canada and internationally. It produces crude oil, natural gas and NGLs. In the first quarter of 2025, the company delivered strong results. Production reached 157,000 barrels of oil equivalent per day. Despite some weather and logistical disruptions, Murphy generated $636 million in revenue, with oil selling at an average of $72 per barrel.
A key highlight from the latest earnings call was Murphy Oil Corporation (NYSE:MUR) operational execution. The company drilled its longest lateral wells ever in both the Eagle Ford and Tupper Montney plays, showing efficiency and innovation. Initial production from the Tupper Montney wells jumped by 30% due to improved completions. Offshore, Murphy continued to advance its Gulf of Mexico assets and brought key wells online.
Internationally, the company is gaining momentum. In Vietnam, it made a new oil discovery at the Pink Camel well and continued progress with its Golden Camel and Golden Sea Lion developments. It also has a three well exploration program in Côte d’Ivoire starting soon. This has the potential to uncover up to 1 billion barrels of oil equivalent.
What makes Murphy Oil Corporation (NYSE:MUR) stand out is its commitment to shareholders. In Q1 alone, the company returned $147 million through buybacks and dividends. Since 2013, it has repurchased over 22% of its total shares. With $1.5 billion in liquidity and no near term debt maturities, Murphy is in a strong position to maintain and grow these returns.
Murphy Oil is more than just a high yield stock. It is a well managed energy company with global upside and strong fundamentals. For income investors and those looking for value in 2025, Murphy is a stock worth watching.
10. Safe Bulkers, Inc. (NYSE:SB)
Dividend Yield: 5.15%
Payout Ratio: 24.07%
With a healthy dividend yield of 5.15% and a highly conservative payout ratio of just 24.07%, Safe Bulkers, Inc. (NYSE:SB) earns a well deserved place among dividend stocks with potential to rally in 2025. The company’s fundamentals are hard to ignore including a forward P/E of just 4.62, PEG ratio of 0.50, and debt to equity ratio of 0.63 which make this a value investor’s dream in the dry bulk shipping sector.
Safe Bulkers, Inc. (NYSE:SB) operates a fleet of 47 vessels that transport essential commodities like coal, grain, and iron ore across global markets. Even amid softer charter rates and macroeconomic headwinds in Q1 2025, the company remained resilient. Its focus on environmental upgrades, efficient operations, and long term fleet renewal has kept it competitive. As of May, Safe Bulkers, Inc. (NYSE:SB) had delivered its 12th Phase III eco vessel, continuing to build a technologically advanced and low emission fleet aligned with upcoming global regulations.
Despite a weaker freight market, all eight of the company’s Capesize vessels are chartered under fixed rate contracts averaging $23,000 per day which is significantly above the current spot rate. This strategic move ensures strong cash flow visibility, backed by over $137 million in backlog revenue from these long term charters.
Management also continues to reward shareholders. The Q1 dividend of $0.05 marked the 14th consecutive payout, while a recent share repurchase program retired 3 million shares. Since 2022, Safe Bulkers has returned over $140 million to shareholders through dividends and buybacks while maintaining ample liquidity of $250 million and low leverage of 37%.
Safe Bulkers, Inc. (NYSE:SB) is not just weathering rough economic seas it is steering toward sustainable long term growth. Its modern largely Japanese built fleet gives it a competitive edge in efficiency and carbon regulation compliance. For investors seeking a mix of income, value, and stability in 2025, Safe Bulkers looks well positioned to deliver.
09. Honda Motor Co., Ltd. (NYSE:HMC)
Dividend Yield: 5.27%
Payout Ratio: 34.32%
Honda Motor Co., Ltd. (NYSE:HMC) stands out as one of the most dependable and fundamentally solid dividend stocks to watch in 2025. With a dividend yield of 5.27% and a modest payout ratio of 34.32%, Honda not only offers reliable income, but also room for future dividend growth. Backed by a forward PE of just 6.73, a PEG ratio of 1.07, and a debt to equity ratio of 0.93, this Japanese automaker presents an attractive mix of value and stability.
Honda Motor Co., Ltd. (NYSE:HMC) diversified business spans motorcycles, automobiles, power products, and financial services, giving it a balanced revenue base. In its fiscal year ending March 2025, Honda posted operating profit of JPY 1.213 trillion, and if we exclude a one time accounting change, profits would have been even higher at JPY 1.341 trillion. Despite challenges in its automobile segment, especially in China and ASEAN, Honda saw record breaking performance in its motorcycle division, with over 20.5 million units sold and an all time high operating profit of JPY 663.4 billion.
Cash flow remains a bright spot for Honda. Operating cash flow after R&D hit JPY 2.8 trillion, matching last year’s strong performance and ensuring the company’s ability to invest and return capital to shareholders. Honda’s consistent free cash flow is helping fund growth initiatives like hybrid EV expansion, especially in North America, where demand continues to grow.
To reinforce its commitment to shareholders, Honda Motor Co., Ltd. (NYSE:HMC) announced a dividend hike to JPY 70 per share, up from JPY 68, and a shift to a more stable dividend policy based on DOE (Dividend on Equity), signaling an aim for even more consistent returns.
In a time when EV market dynamics are shifting and tariffs add uncertainty, Honda's ability to adapt, backed by its motorcycle dominance, innovation in hybrid technology, and healthy financials, makes it a compelling dividend stock with upside potential for 2025 and beyond.
08. Virtus Investment Partners, Inc. (NYSE:VRTS)
Dividend Yield: 5.38%
Payout Ratio: 49.15%
Virtus Investment Partners, Inc. (NYSE:VRTS) earns a well deserved spot among dividend stocks to watch in 2025. With a generous dividend yield of 5.38% and a payout ratio of 49.15%, the company delivers dependable income while maintaining healthy fundamentals.
Virtus Investment Partners, Inc. (NYSE:VRTS) is a diversified investment management firm serving both individual and institutional clients with a wide range of strategies across equities, fixed income, ETFs, and real estate. Despite a challenging market environment in Q1 2025, the firm beat earnings expectations, reporting EPS of $5.73 versus the forecasted $5.33. This outperformance was backed by strong investment results, especially in ETFs and fixed income products, and prudent expense management.
Assets under management (AUM) at the end of Q1 totaled $167.5 billion, with institutional accounts leading at 34% of total AUM. While the firm experienced net outflows of $3 billion, this marked an improvement from the prior quarter’s $4.8 billion, signaling stabilizing client activity. The company’s ETFs continued to shine, generating an impressive 73% organic growth rate year over year and strong net inflows.
Virtus Investment Partners, Inc. (NYSE:VRTS) long term investment performance has also been excellent. Over 70% of equity strategies outperformed benchmarks in Q1, and Barron’s recognized Virtus as the No. 2 top fund family over the past decade. Additionally, over 86% of its fund AUM is invested in highly rated funds (3-5 stars), underscoring consistent outperformance across various market cycles.
With a 32.7% adjusted operating margin, continued share repurchases, and modest leverage (net debt just 0.3x EBITDA), Virtus is not just rewarding shareholders today, it’s building a foundation for sustainable value creation. Management’s balanced approach to reinvestment and capital returns signals long term confidence.
In a volatile market, Virtus’s active management approach, strong dividend, and disciplined capital strategy make it a quiet leader with significant upside potential heading into 2025.
07. Eastman Chemical Company (NYSE:EMN)
Dividend Yield: 5.55%
Payout Ratio: 42.47%
Eastman Chemical Company (NYSE:EMN) stands out as a compelling dividend stock for 2025, offering a solid 5.55% dividend yield and a payout ratio of just 42.47%, a strong signal that the company not only rewards shareholders but does so responsibly. Add in a forward P/E ratio of 9.16, a debt to equity ratio of 0.86, and a PEG ratio of 1.79, and it’s clear this stock is trading at an attractive valuation with sustainable growth in the pipeline.
As a global specialty materials company, Eastman operates across the U.S., China, and other international markets, supplying critical materials used in everything from coatings and chemicals to packaging and textiles. In Q1 2025, Eastman Chemical Company (NYSE:EMN) reported strong operational performance despite market uncertainty. The company’s Kingsport methanolysis facility ran smoothly with an 85% yield on recycled feedstock, driving about $25 million in earnings contribution from this segment alone.
Importantly, the company is well on track to deliver $50 million in EBITDA savings from manufacturing cost improvements this year, half of the originally projected $75-$100 million range. This operational efficiency is expected to support earnings growth throughout 2025, even amid global tariff headwinds and soft consumer demand in some markets.
Eastman Chemical Company (NYSE:EMN) initially guided $75-$100 million in revenue from its circular plastics ("Renew") initiative but has revised that down slightly to $50-$75 million, not due to lack of interest, but because of uncertainty in U.S. China trade affecting end markets like consumer durables. Nevertheless, management remains confident in the long term opportunity and is executing on cost control and innovation to drive profitability regardless of the macro backdrop.
With strong fundamentals, solid cash flow, disciplined capital allocation, and a commitment to shareholder returns, Eastman Chemical is well positioned not just for stability but upside. For income focused investors looking for value and growth, EMN is a top contender that combines consistent dividends with long term resilience.
06. Lincoln National Corporation (NYSE:LNC)
Dividend Yield: 5.55%
Payout Ratio: 9.78%
Lincoln National Corporation (NYSE:LNC) deserves a top spot among high yield dividend stocks with the potential to rally in 2025. As of June 19, LNC offers a healthy dividend yield of 5.55% with a very low payout ratio of just 9.78%, signaling that the dividend is highly sustainable. This financial strength is paired with a deeply undervalued forward P/E of 4.26, a debt to equity ratio of 0.72, and an impressive PEG ratio of 0.74, highlighting both attractive valuation and solid growth potential.
Lincoln National Corporation (NYSE:LNC) operates across four core segments, Life Insurance, Annuities, Group Protection, and Retirement Plan Services, making it a diversified player in the U.S. insurance and retirement markets. The company just posted Q1 2025 earnings of $1.60 per share, beating estimates and reinforcing confidence in its ongoing turnaround strategy.
CEO Ellen Cooper emphasized how Lincoln has strategically repositioned itself over the past two years by strengthening its balance sheet, diversifying product offerings, and enhancing its investment strategy. The company’s RBC ratio remains above 420%, well above its 400% target, providing a strong capital buffer against economic headwinds.
Operationally, Lincoln’s performance speaks for itself. The Group Protection segment saw earnings jump 26% year over year, while Annuities posted 33% sales growth, reflecting successful efforts to shift towards more stable, spread based products. Fixed annuity sales, in particular, surged more than 50% sequentially. Life insurance also saw a 7% bump in sales, underscoring growing customer demand for risk sharing products.
A new strategic partnership with Bain Capital is another game changer. Not only will Bain manage part of Lincoln’s general account, but it will also collaborate on expanding product offerings and driving innovation. This move strengthens Lincoln National Corporation (NYSE:LNC) long term positioning and capital flexibility.
With improving margins, diversified growth across segments, and a rock solid balance sheet, Lincoln National looks like a textbook undervalued opportunity. For dividend investors looking for a mix of high yield, strong fundamentals, and turnaround momentum, LNC is a prime candidate for upside in 2025.