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5 Relatively Secure And Cheap Dividend Stocks, Yields Up To 9% (July 2025)

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  Published in Stocks and Investing on Sunday, October 5th 2025 at 6:07 GMT by Seeking Alpha
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Five Dividend‑Heavy Picks That Look “Safe” and “Cheap” in July 2025

Seeking Alpha’s July 2025 commentary on dividend‑focused investing zeroes in on a handful of high‑yield, low‑priced stocks that the author argues offer a blend of stability and upside potential. The piece frames the market environment as one where a handful of well‑established companies can still deliver attractive yields—some approaching 9%—without the extreme volatility that usually accompanies the most generous dividend payers.

What Makes a “Relatively Secure” Dividend Stock?

The article begins by laying out a checklist that the author uses to screen each candidate:

1. Fundamental solidity – Companies with strong balance sheets, manageable debt loads, and consistent free‑cash‑flow generation tend to survive economic cycles better than their more leveraged peers.
2. Dividend sustainability – A payout ratio below 60–70% (the ratio of dividend paid to net earnings) is seen as a buffer that protects the dividend even if earnings take a hit.
3. Price accessibility – Shares that trade at a lower valuation (measured by price‑to‑earnings or price‑to‑book) provide a cushion against downside risk, allowing investors to purchase more shares for the same dollar amount.
4. Sector resilience – The author leans toward industries that are “hard‑core” staples—energy, utilities, consumer goods, and telecommunications—because their cash flows are less sensitive to discretionary spending.

With those filters in place, the article presents five firms that, as of July 2025, appear to tick all the boxes while offering yields that sit at or near the 9% threshold.

The Five Stocks

(Percentages are approximate and reflect the most recent data available at the time of writing; yields can fluctuate with stock price changes.)

What the Author Highlights About Each

The article spends a few sentences on each company, noting both the upside and the caveats:

• Altria is praised for its near‑unparalleled brand power in the tobacco sector, but the piece cautions that regulatory pressures—particularly on flavored products—could dent profitability in the long term.

• AT&T is described as a “classic dividend play” thanks to its large subscriber base. Still, the writer warns that the company’s large capital‑expenditure (cap‑ex) bill for 5G roll‑outs could squeeze margins if the rollout stalls or faces delays.

• Energy Transfer and Kinder Morgan are bundled together in the narrative as “pipeline kings.” Both firms enjoy regulated rates that provide predictable earnings, though commodity price swings in crude and natural‑gas markets can influence the bottom line.

• Williams Companies is singled out for its focus on natural‑gas infrastructure, a sector that is expected to grow as the U.S. pushes for cleaner energy. The article, however, cautions that a sharp decline in natural‑gas prices could compress cash flows.

Yield vs. Risk: The Bigger Picture

A central theme throughout the piece is that “high yield does not automatically equal high risk.” The author points out that these stocks’ payout ratios remain comfortably below the levels that typically herald dividend cuts. Still, the article also acknowledges that a rise in interest rates—already a hot topic in 2025—could pressure all dividend stocks, especially those in the energy and utilities sectors that rely on debt‑financed infrastructure.

The writer advises investors to consider the dividend coverage ratio (EBITDA divided by the dividend) as an additional safety net. For the five picks, coverage ratios largely sit above 4x, which, according to the author, signals that the companies can comfortably meet their dividend obligations even in leaner months.

The Take‑Away

While the article is framed as a “shopping list” for dividend investors, the deeper message is one of balance. The author urges readers to:

• Diversify across sectors (consumer staples, telecom, and energy infrastructure) to spread risk.
• Keep an eye on the macro‑economy—especially inflation and rate hikes—which can erode dividend attractiveness.
• Use dividend reinvestment plans (DRIPs) to compound returns, particularly when yields are as high as 8–9% and the market is reasonably priced.

The concluding recommendation is a mild caution: “If you’re comfortable with the long‑term nature of these businesses and the inherent sector risks, these five stocks can offer a decent blend of yield and safety.” The article ends with a nod to the importance of regular portfolio rebalancing, as yields and valuations are always in flux.

Final Thought

For investors who are not looking to chase the highest possible dividend percentages but rather want a solid, lower‑risk exposure to high yields, the July 2025 Seeking Alpha article provides a concise, sector‑diversified set of options. Each of the five stocks is backed by robust cash flows and a track record of dividend sustainability—qualities that can help cushion the impact of the inevitable market swings that come with any investment strategy.