3 High-Yield Dividend All-Stars to Buy Right Now

The good news for investors seeking high-yield dividend stocks to buy right now is that there are a number of top options for investors to consider in the high-yield dividend world.

Outside of much riskier penny stocks and those with yields in the double-digit range (which is often a clear signal the market thinks a given company can’t pay its yield into the future), finding high-yield stocks that meet long-term investors’ total return criteria can be difficult. Indeed, the absolute number of high-quality stocks that also provide yields that are considerably higher than the market average isn’t an easy task, by any means.

With that said, I’m going to focus my attention in this piece on three of the highest-yielding stocks in the Dow Jones Industrial Index. These are three companies that have withstood the test of time, and remain among the 30 largest industrial companies in the U.S.

Without further ado, let’s dive in!

Verizon Communications

First on this list of high-yield stocks investors may want to consider buying right now is Verizon Communications (NYSE:VZ). That’s fitting, since this is actually the highest-yielding stock on the Dow, with a current dividend yield of roughly 6.2%.

I’d have to admit that the five-year chart for Verizon certainly doesn’t look pretty, and there’s good reason for this. Investors have quite simply found much better options (many with dividend yields, though most likely much lower than Verizon’s yield) that can provide significant capital appreciation upside during bull markets. This past bull market, one could argue that Verizon has essentially sit out the rally, which makes sense due to the company’s very slow-growth mature status.

However, with more than $37 billion in operating cash flow and nearly $20 billion in free cash flow posted last year, Verizon is also a cash flow machine. Until consumers stop paying their cell phone bills (and who can really do that), this is a company that should continue to spit out cash and pay investors a healthy and growing dividend yield over time.

I think Verizon’s strategic investments in its AI-powered solutions and continued Capex on its existing infrastructure portfolio should provide meaningful low-digits revenue growth over the long-term.

Johnson & Johnson

Another top dividend stock I’ve long pounded the table on is Johnson & Johnson (NYSE:JNJ). This diversfied healthcare giant has generated dividend growth for more than 50 consecutive years, making it a top dividend king I think investors would be remiss to ignore.

There are many reasons for this, including the company’s similarly robust cash flow growth profile over the long-term. However, unlike Verizon, JNJ actually saw revenue growth of more than 5% (compared to just 1.6% year-over-year growth for Verizon in 2024), making this a company that could provide more capital appreciation upside over the long-term. For investors seeking a more reasonable mix of both, this is the option I’d go with.

Additionally, I think it’s worth pointing out that most of the company’s legal troubles do seem to be behind the company. Thus, in terms of potential headwinds and regulatory overhang, this is a stock that looks a lot better today than it did a year or two ago.

With a yield of 3.4%, investors certainly have a nice base to build off of. And given where bond yields may be headed (if recessionary headwinds continue to pick up), this is a stock that could catch a bid.

Chevron

For investors looking for further diversification, Chevron’s (NYSE:CVX) exposure to the oil and gas sector could provide the right ballast for those missing any sort of meaningful exposure to this sector.

Unfortunately, with oil and gas prices dipping as investors price in higher recession risks into their valuation models, this is a stock that’s been beaten down of late. Fortunately for dividend investors, this means that the energy giant now provides a dividend yield that’s approaching 5.1%. At this level, which is materially higher than Treasury yields, there’s an easy-to-understand investing thesis most yield-hungry investors can get behind.

Like other Warren Buffett picks in the past, Chevron continues to sport one of the most robust balance sheets in this sector. While the Oracle of Omaha appears to favor Occidental Petroleum (NYSE:OXY) in this space, Chevron is a company that’s stuck on my watchlist ever since Buffett initiated a position a few years aback.

With Chevron’s stock price now reflecting a dividend yield that’s near the top end of its long-term range, this is a stock I’m considering adding at current levels. For those with a long-term investing time horizon, I’d suggest giving this stock a good look here.

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