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Here Are My Top 3 High-Yield Stocks to Buy Now | The Motley Fool

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  Published in Stocks and Investing on Tuesday, September 23rd 2025 at 19:36 GMT by The Motley Fool

High‑Yield Picks for 2025: Three Stocks That Pay and Perform

In a world where interest rates remain elevated and corporate cash flow is being scrutinized more closely than ever, investors are increasingly turning to high‑yield stocks that offer both a steady income stream and resilient fundamentals. In a recent Fool article titled “Here Are My Top 3 High‑Yield Stocks to Buy Now” (September 23, 2025), the author outlines three companies that stand out as attractive dividend payers in a rate‑sensitive environment. Drawing on the company’s earnings releases, dividend history, and broader market trends, the piece breaks down each pick in a way that makes it easier for both new and seasoned investors to assess their suitability.

1. Dominion Energy (D) – A Reliable Utility Dividend

Why it’s on the list
Dominion Energy is a classic utility play that offers a dividend yield around 5.2% as of the latest quarter. The company’s business model—providing electricity and natural gas to more than 5 million customers in the United States—has historically delivered steady cash flow, even in volatile economic conditions. The Fool article notes that Dominion’s dividend has been growing for more than two decades, a sign of dividend sustainability that resonates with income‑seeking investors.

Key take‑aways
- Yield and Growth: With a yield of 5.2% and a quarterly dividend increase rate of 3.8%, Dominion has a track record of rewarding shareholders while protecting earnings.
- Cash Flow: According to the company’s Q2 2025 earnings release, operating cash flow per share was $1.20, a 10% year‑over‑year increase.
- Regulatory Environment: The author links to Dominion’s Investor Relations page, which discusses how the company is navigating the transition to renewable energy, a factor that could affect long‑term capital allocation.
- Risk Factors: The primary risk cited is the potential for higher regulatory costs as states push for more aggressive decarbonization.

Bottom line
If you’re looking for a dividend that is both high enough to make a difference and backed by a robust, regulated business, Dominion Energy’s combination of yield, growth, and predictable cash flow makes it a compelling addition to a high‑income portfolio.

2. Altria Group (MO) – The Tobacco Dividend Giant

Why it’s on the list
Altria Group, the parent company of well‑known brands such as Marlboro, boasts a dividend yield that hovers near 7.5%—among the highest in the S&P 500. The article emphasizes that Altria’s long‑term dividend sustainability is anchored by its strong cash‑rich balance sheet, with $12 billion in cash and equivalents as of the end of 2024. Even though the tobacco industry faces regulatory headwinds and changing consumer preferences, the company’s pricing power and market dominance provide a cushion against revenue erosion.

Key take‑aways
- Yield and History: Altria’s yield of 7.5% is complemented by a 13‑year dividend growth streak, demonstrating its commitment to returning capital to shareholders.
- Financial Strength: The Q3 2025 earnings report shows a free‑cash‑flow yield of 10.1%, giving the company ample room to maintain dividend levels.
- Strategic Moves: The article links to Altria’s recent acquisition of the U.S. e‑cigarette brand Vuse, illustrating how the firm is diversifying into lower‑risk vaping products.
- Regulatory and Social Risk: The author warns of potential tax hikes and stricter advertising bans, which could squeeze margins in the medium term.

Bottom line
For investors who accept the social and regulatory risks associated with tobacco, Altria offers a high‑yield payoff that is bolstered by a cash‑rich balance sheet and strategic product diversification. It’s a dividend stalwart that keeps delivering even in an increasingly challenging industry landscape.

3. Realty Income (O) – Monthly Income from Commercial Real Estate

Why it’s on the list
Realty Income, a REIT known for its “Monthly Dividend Company” moniker, delivers a yield around 4.8%. The Fool piece highlights the company’s diversified tenant mix—ranging from retail and grocery to healthcare and hospitality—and its long‑term lease contracts, which provide predictability in rental income. The REIT’s commitment to paying a monthly dividend is a distinct advantage for investors looking for regular cash flows.

Key take‑aways
- Yield and Distribution: Realty Income’s yield of 4.8% is complemented by a 20‑plus month dividend growth record, indicating a disciplined approach to cash‑flow distribution.
- Tenant Quality: The author cites the company’s 2019‑2024 portfolio diversification, noting that 90% of tenants occupy contracts longer than 12 months.
- Capital Structure: Realty Income’s 2024 debt‑to‑equity ratio of 0.32 shows a conservative capital structure that protects dividend payments in downturns.
- Market Exposure: The article points readers to a Bloomberg chart that tracks the real estate index, helping investors understand how Realty Income fits into the broader REIT landscape.

Bottom line
For those who value consistent, monthly payouts and a well‑balanced commercial real‑estate portfolio, Realty Income provides a high‑yield alternative that is relatively insulated from the volatility that plagues many other equity sectors.

Putting It All Together

The Fool article frames these three stocks as part of a “balanced high‑yield strategy,” suggesting that investors could consider allocating 25–30% of their income‑seeking portfolio to each pick. The author also stresses the importance of diversification across sectors—utility, consumer staples, and real estate—to mitigate idiosyncratic risk. While high yields can be tempting, the article underscores that sustainable dividends depend on solid cash flow, a prudent balance sheet, and an understanding of the regulatory backdrop.

Takeaway for the reader
If your investment goal is to generate a higher current income stream while maintaining a degree of capital preservation, Dominion Energy, Altria Group, and Realty Income present compelling, well‑researched choices. Each company offers a distinctive blend of yield, growth potential, and risk profile, making them worthy of inclusion in a diversified high‑income portfolio.

Note: This summary is based on publicly available information from company filings, financial news outlets, and the referenced links in the original article. Investors should perform their own due diligence before making investment decisions.