In this dividend contenders list, we will discuss the top 15 dividend stocks with the highest yields.
Dividend stocks have remained a popular choice among investors due to the steady income they provide, becoming even more attractive when payouts grow over time. Many investors look for companies with a track record of consistently increasing dividends, as this ensures rising income in the long run. However, maintaining steady dividend growth is no easy feat. For example, “dividend aristocrats” are companies that have raised their dividends for at least 25 consecutive years, a distinction achieved by only about 68 US companies. This highlights the difficulty of sustaining such a standard. Nonetheless, numerous companies continue to build strong, albeit shorter, histories of dividend growth, demonstrating resilience and the potential to reach new milestones. “Dividend contenders” are those that have consistently increased their dividends for at least 10 years, though they have yet to attain the 25-year benchmark required to be classified as long-term dividend growers.
Dividend stocks appeal to investors because they help cushion portfolios against market downturns while still offering growth opportunities. Historically, investment strategies centered around dividends have demonstrated stability across various regions and market cycles. A report by Franklin Templeton noted that over the three years leading up to December 31, 2024, companies that pay dividends experienced lower volatility and smaller declines compared to the broader market in global, US, and European markets. When inflation and interest rate concerns reemerged in August 2024, dividend stocks remained relatively steady.
Companies that pay regular dividends often belong to non-cyclical industries such as consumer staples, utilities, and healthcare, which tend to be more resilient during economic downturns. As 2025 began, growing concerns over rising inflation and slowing economic growth led investors to increase their exposure to defensive stocks, aiming to protect their portfolios from potential market volatility.
Ned Davis’s Clissold and his team made the following comment on the situation:
“One would expect that companies that pay dividends are more stable and have lower growth rates. As a result, they should rally less in up markets and decline less in down markets. In other words, they have lower betas than non-dividend-payers. … As a group, dividend-payers have a beta of 0.99 versus 1.11 for nonpayers.”
Investors tend to favor companies with a track record of consistently increasing their dividend payouts. A study by Nuveen found that firms initiating or raising dividends have historically outperformed in the three years following a Federal Reserve interest rate hike. Dividend growth is often linked to solid corporate earnings. In February, the overall market faced challenges, slipping more than 2% as investors reacted to inflation worries, potential tariffs linked to former President Donald Trump, and rising geopolitical tensions. On February 28, the major index briefly turned negative for the year. However, fourth-quarter earnings reports have emerged as a new driving force, helping to support market sentiment.
Companies continued to boost their dividend payouts in the fourth quarter of 2024. According to a report from S&P Dow Jones Indices, a total of 635 companies raised their dividends during the quarter, amounting to $14.2 billion. Over the full year, total dividend increases climbed to $71.4 billion, up from $65.1 billion the year before. Given this, we will take a look at some of the best stocks in our dividend contenders list.
A person holding a cup of coffee while reading stock market data on the phone. Photo by Anna Nekrashevich on Pexels
Our Methodology
This list focuses on dividend contenders—companies known for raising their dividends consistently for 10 years but less than 25. From this group, we selected prominent companies with the highest dividend yields as of March 12 and ranked from lowest to highest yield.
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15. Bank of America Corporation (NYSE:BAC)
Dividend Yield as of March 12: 2.61%
Bank of America Corporation (NYSE:BAC) is an American financial services company that offers a wide range of related services and products to its consumers. The company maintains a strong presence in retail banking, serving millions of customers with a diverse range of financial products, including checking accounts, credit cards, mortgages, and loans. Its advanced digital banking platform enhances accessibility, while its investment banking and asset management divisions—Merrill and BofA Securities—offer advisory services, trading, and financial planning. In the past 12 months, the stock has surged by nearly 11%.
In the fourth quarter of 2024, Bank of America Corporation (NYSE:BAC) delivered strong financial results, with revenue rising to $25.3 billion from $22 billion in the prior-year period. Net income more than doubled, reaching $6.7 billion compared to $3.1 billion a year earlier. The bank also expanded its customer base, adding 213,000 new consumer checking accounts, marking six consecutive years of quarterly growth. In addition, it returned $2 billion to shareholders through dividend payments.
Bank of America Corporation (NYSE:BAC) currently offers a quarterly dividend of $0.26 per share and has a dividend yield of 2.61%, as of March 12. The company makes it to our dividend contenders list as it has been growing its payouts for 11 consecutive years. Moreover, it has never missed a dividend in the past 27 years.
14. Lockheed Martin Corporation (NYSE:LMT)
Dividend Yield as of March 12: 2.86%
Lockheed Martin Corporation (NYSE:LMT) is a Texas-based defense and aerospace manufacturing company that specializes in advanced technology systems, services, and products. Investor interest in the stock has been growing after a March 3 report from Reuters revealed that the company is preparing to introduce a new, cost-effective cruise missile. Priced at $150,000 and capable of reaching a range of 800 kilometers, the missile is part of the company’s strategy to provide more affordable weaponry in response to China’s expanding influence in the Pacific.
In the fourth quarter of 2024, Lockheed Martin Corporation (NYSE:LMT) posted revenue of $18.6 billion, reflecting a 1.3% decline from the same period a year earlier. Despite this, the company remained committed to bolstering national security, allocating over $3 billion toward research and development as well as capital expenditures to advance customer objectives. These investments focused on driving innovation and modernizing operations through advanced digital and manufacturing technologies. The company’s consistent financial performance also allowed it to return more than 100% of its free cash flow to shareholders over the year.
Lockheed Martin Corporation (NYSE:LMT) demonstrated strong cash generation in fiscal 2024, reporting $7 billion in operating cash flow and $5.3 billion in free cash flow. In addition, it returned $6.8 billion to shareholders through dividend payments and share repurchases. The company pays a quarterly dividend of $3.30 per share and has a dividend yield of 2.86%, as of March 12. With a 22-year streak of dividend growth, LMT ranks fourteenth on our dividend contenders list.
13. Mondelez International, Inc. (NASDAQ:MDLZ)
Dividend Yield as of March 12: 2.89%
Mondelez International, Inc. (NASDAQ:MDLZ) is an Illinois-based food, confectionery, and beverage company with a workforce of around 80,000 employees worldwide. The company expanded its portfolio by acquiring a majority stake in Evirth, a leading company in China’s rapidly growing frozen-to-chilled baked snacks market. This move aligns with the company’s focus on strengthening its presence in the cakes and pastries segment, complementing its core chocolate and biscuit businesses.
In the fourth quarter of 2024, Mondelez International, Inc. (NASDAQ:MDLZ) reported $9.6 billion in revenue, reflecting a 3.11% year-over-year increase. However, this figure fell short of market expectations by over $51 million. For the full year, revenue rose by 4.3%, with growth recorded in both developed and emerging markets. The chocolate segment performed particularly well, expanding by 7.4%, with global brands such as Cadbury Dairy Milk and Milka driving strong results.
Mondelez International, Inc. (NASDAQ:MDLZ) ended fiscal 2024 with a solid financial position, generating $4.9 billion in operating cash flow and $3.5 billion in free cash flow. In addition, it returned $4.7 billion to shareholders through dividends and share buybacks. Mondelez has increased its dividend for 11 consecutive years, which places it on our dividend contenders list. The company offers a quarterly dividend of $0.47 per share and has a dividend yield of 2.89%, as recorded on March 12.
