Need More Passive Income? Buy These 2 High-Yield Dividend Stocks Now

For investors seeking a reliable edge, dividend stocks stand as a beacon of proven success. Over nearly a century, income-generating stocks on the S&P 500 have consistently delivered, averaging 9.5% annual returns since 1930, dwarfing the 4.5% from non-payers, accord to Hartford Funds. 

Even in the darkest economic storms — think the 1970s stagflation or the 2008 market crash — these stalwarts rarely faltered, often posting positive decades when others bled red. The magic lies in their dual promise: steady cash flow and resilience.

Dig deeper, though, and Wellington Management  found stocks with robust but not extreme yields — those in the high, but not ultra-high, range — outpaced their peers 68% of the time, blending income with growth. History backs this: dividend growers, blending payout hikes with capital gains, notched 10.1% annualized returns over 50 years, leaving non-payers in the dust. 

Today, with markets jittery from tariff shocks and inflation, these stocks offer a lifeline of stability without sacrificing upside.

The trick? It’s not just about chasing the fattest dividends. High yields can signal distress, but balanced payers thrive, offering cash now and appreciation later. As valuations remain stretched near record highs even after the Dow Jones Industrial Average cratered, finding these gems takes skill. 

Investors should look for stocks with sustainable dividends, room to grow, and a buffer against volatility. For those eyeing wealth in an uncertain  2025, this strategy isn’t just smart, it’s a timeless, proven strategy. The two high-yield dividend stocks below are your ticket to adding more income to your portfolio.

Gladstone Investment (GAIN)

Gladstone Investment (NASDAQ:GAIN) is a standout business development company (BDC) offering a compelling case as a high-yield dividend stock to buy today, 

Unlike typical BDCs that lean heavily on loans, Gladstone carves a unique path by targeting 25% of its portfolio toward equity investments that rises to 33% at fair value. That far exceeds the 5% to 10% equity norm among peers. This equity tilt adds risk, but fuels outsized returns when exits pay off.

Its bread-and-butter monthly dividend, rooted in a robust loan portfolio, stands at $0.08 per share, yielding a lucrative 7.6% annually. As a first-lien investor, Gladstone enjoys priority repayment in defaults, bolstering payout stability. With over 223 consecutive monthly distributions spanning over 18 years since inception, GLAD is a rock for income seekers.

Supplemental dividends sweeten the deal. A $0.24 payout hit in March 2025, following its exit from Nocturne Luxury Villas, potentially pushing the BDC’s total yield higher.

Its recent fourth-quarter results show adjusted net investment income steady at $0.23 per share,with net asset value at $13.30 per share, up from $12.49 per share in the prior quarter. 

Still, $107.2 million invested in six new firms signals growth, and with just 26 portfolio companies, Gladstone’s hands-on boardroom approach drives performance. 

GLAD stock trades at $12.41 per share and its 13x forward P/E offers value. In a tariff-rattled market, Gladstone Investment’s high-yield consistency makes it a must-buy.

Brookfield Infrastructure Partners (BIP)

The second high-yield dividend stock to buy is Brookfield Infrastructure Partners (NYSE:BIP). This isn’t your average utility stock, but rather it’s a global powerhouse owning critical infrastructure, from railroads and ports to data centers and semiconductor foundries.

This diversification fuels its resilience in tough times, delivering 13% annualized total returns since 2009, outpacing the S&P 500’s 10.5%. Even amid Trump’s tariff storm, BIP thrives, leveraging its “buy, enhance, sell, repeat” strategy. The just-announced $9 billion deal for Colonial Enterprises underscores this, locking in the U.S.’s largest refined products pipeline.

BIP’s adjusted funds from operations (FFO) in 2024 hit $1.86 billion, up 9% over the past two years, driven by 90% contracted or regulated cash flows that are immune to market whims. 

The dividend yields 6% annually, with a 9% compound annual growth rate since 2009 and a 70% payout ratio ensuring safety. Brookfield hiked the payout for the 16th consecutive year in February, and it targets 5% to 9% growth going forward. At $27.63 per share, BIP trades at a forward P/E of 18, a bargain for its 33% long-term earnings growth forecast.

Tariffs also barely faze Brookfield. Some 85% of its U.S.-centric assets dodge import hits, while the $500 million in cash it will receive from Colonial bolsters its expansion plans. BIP stock is down 13% year-to-date, suggesting today’s price is offer a deep discount. For high-yield seekers, Brookfield Infrastructure Partners is a quality high-yield dividend stock to buy and hold.

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