3 No-Brainer High-Yield Dividend Stocks to Buy in 2025

Core Investment Insights - High-yield dividend stocks provide solid base returns through dividend income, making them attractive even without rapid growth [1] - Black Hills, Brookfield Renewable, and Brookfield Infrastructure are highlighted as top high-yield dividend stocks for 2025 and beyond [2] Black Hills Overview - Black Hills offers a 4.5% dividend yield, which is high compared to the average utility yield of 2.7%, indicating the stock may be undervalued [3] - The company has an investment-grade balance sheet and plans to invest $4.3 billion over the next five years, with expected earnings growth of 4% to 6% annually [4] - Black Hills has a 54-year history of annual dividend increases, qualifying it as a Dividend King, making it a reliable investment option [5] Brookfield Renewable Overview - Brookfield Renewable has a dividend yield of around 5.2%, significantly higher than the S&P 500's yield of about 1.2% [6] - The company has achieved a 6% compound annual growth rate in dividend payouts over the last 20 years, targeting 5% to 9% annual growth moving forward [7] - Brookfield expects 4% to 7% annual funds from operations (FFO) per share growth, supported by a backlog of approximately 200 gigawatts of renewable energy projects [8] - The company anticipates commissioning about 10 gigawatts of projects annually, contributing to an expected FFO per share growth of over 10% annually for the next several years [9] - The combination of high dividend yield and growth potential positions Brookfield Renewable as a strong investment choice [10] Brookfield Infrastructure Overview - Brookfield Infrastructure has consistently raised its dividend since 2009, with a compound annual growth rate of 9% through 2024 [11] - The company reported a 7% growth in FFO per unit during the first nine months of 2024, indicating strong performance [12] - Recent acquisitions, including telecom tower sites in India and stakes in logistics companies, have positioned Brookfield Infrastructure to capitalize on megatrends like digitalization [13] - The company targets 5% to 9% annual dividend per share growth, with current yields of 4% for BIPC and 4.9% for BIP, making it an attractive investment [14]