Buy These Over 5% Yield Dividend Stocks Before the Fed Meets Next Week

The economy has been sending mixed signals. While inflation is finally showing signs of cooling, undeniable cracks have surfaced in the labor market. Despite this uncertainty, pressure is rapidly intensifying on the central bank to slash interest rates when policymakers convene for the next FOMC meeting in mid-June. The Trump administration has not held back, with Vice President J.D. Vance most recently unleashing a blistering critique against Fed Chairman Jerome Powell, labeling his monetary policy as “malpractice.”

With the path now clearing for the Fed to finally ease interest rates, market dynamics are poised for a significant shift. Fixed income investors will swiftly discover that bonds have lost their main appeal, inevitably propelling them into equities – specifically, into the welcoming arms of attractive high-yield dividend stocks promising steady income.

We’ve identified a handful of these dividend powerhouses that fit this description, currently yielding over 5% and presenting compelling buying opportunities before the Fed’s gathering next week. Once the rate cut becomes official and borrowing costs descend, it’s a strong bet that the following stocks will command a higher price. Spoiler alert: You’ll want to stick with us to the end because we may have saved the best for last.

1.) Rio Tinto Group (NYSE: RIO)

Mining company Rio Tinto Group (NYSE: RIO) is currently trading in the middle of its 52-week range at approximately $58 per share. With a dividend yield of 6.7%, Rio Tinto fits the bill as a high-yielding dividend play. The company, which mines resources ranging from iron ore to lithium, has close to a decade-long history of paying ordinary dividends at the top of its payout range at 60%.

In 2024, that amounted to $6.5 billion. Rio Tinto pays shareholder dividends semi-annually, so investors must be patient for the payouts. But they might find the waiting worth their while, as its latest dividend announcement was for $2.25 per share.

As a mining play, Rio Tinto is technically vulnerable to the whims of commodity prices. However, the company has proven its commitment to prioritizing shareholder value by paying toward the top of its range, or the percentage of earnings it has reserved for cash distributions. 

Rio Tinto’s share price has been under pressure, falling 12.3% over the past year, owing to macroeconomic headwinds and some C-suite uncertainty. Nevertheless, Wall Street analysts large advise investors to buy the stock, attaching a $72 average price target and paving the way for 22% upside potential. On the risk side, Rio Tinto is in the midst of a CEO transition, adding to the uncertainty for this stock in the short term. 

2.) Ford Motor (NYSE: F) 

Lower borrowing costs are poised to ignite greater consumer demand for major purchases, including vehicles. As a result, Ford Motor (NYSE: F) emerges as a compelling contender on our list. The automaker currently boasts a regular quarterly dividend of $0.15 per share and is famous for generously rewarding shareholders with special dividends pulled from its annual free cash flow. For instance, in 2024, the company distributed a notable special dividend of $0.18 per share.

Automakers found themselves squarely in the crosshairs of the recent tariff skirmishes as the U.S. moved to safeguard domestic vehicle production from moving overseas. In response, auto manufacturers are strategizing in ways such as reshoring more production to the U.S. In May, Ford saw the payoff, flexing a robust 16% jump in monthly sales after enticing consumers with an employee pricing program. While lingering tariff uncertainty remains, broader trade deals appear to be advancing favorably.

Ford shares are currently trading for $10.66 per share. This dividend-paying auto stock finds itself down 2.4% year to date and has endured a steep 16.9% decline over the past 12 months. Despite recent headwinds, analysts remain keenly interested. In a bullish call, JPMorgan analyst Ryan Brinkman recently reiterated his “overweight” rating on Ford stock, assigning a $12 price target. Also in 2025, Bank of America Securities analyst John Murphy maintained a “buy” rating on Ford stock, with a price target of $14 per share (down from a previous $19 per share).

3.) Brookfield Renewable (NYSE: BEPC)

Brookfield Renewable (NYSE: BEPC), a Limited Partnership (LP) listed on both the NYSE and Toronto Stock Exchange (TSX), commands attention with a robust 4.69% dividend yield. This LP stands out for its specialized focus on renewable power and decarbonization solutions, boasting extensive exposure to hydroelectric, wind, solar and other clean energy sources.

While BEPC offers a direct play on the burgeoning renewable energy sector, its predictable income streams position it similarly to a utility, translating into reliable revenue for the firm and consistent dividends for its investors. In 2025, Brookfield is distributing quarterly dividends of $0.373 per share, a solid increase from $0.355 per share in 2024.

Brookfield CEO Bruce Flatt recently told CNBC that inflation has acted as a tailwind for the company’s revenue streams. His insight appears to be spot-on, as Brookfield just celebrated a record-breaking Q1 performance for its global operating fleet, which is now nearing an impressive 45,000 MW across cost-effective renewable energy sources. Unlike some other dividend stocks navigating market currents, BEPC’s stock is actively climbing so far in 2025, gaining 15.4% year-to-date.

Brookfield is widely considered a defensive play, given the inherent predictability of its income, which can help offset volatility from other equities within a diversified portfolio. Should the economy continue to slow, even within a low-rate environment, Brookfield Renewable could offer investors a valuable haven from market turbulence if its current upward trajectory holds. Wall Street analysts are clearly smitten with BEPC, evidenced by nearly a dozen “buy” ratings on the stock. While an average price target of $30.20 per share might not signal explosive upside, investors can still tap into consistent income from this high-dividend stock.

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