As we look ahead to 2025, our team is seeking high-yield dividend stocks that can provide a stable income stream while also offering growth potential. After careful analysis, we’re highlighting three top picks that are poised to deliver exceptional returns.
First up is Rithm Capital (RITM), a mortgage service rights (MSR) play that’s benefiting from rising mortgage rates. With an elite 8.9% yield, RITM offers investors a chance to capitalize on the increasing demand for MSR contracts. Recent data shows that Caliber Home Loans, which has purchased RITM, will see fewer loans being called away and paid early, making it a solid long-term play.
Next, we’re looking at BP PLC (BP), a British energy giant with a rich history of producing crude oil and natural gas. With a 50% higher dividend payout since its recent cut, BP is an attractive option for income investors. The company’s diversified business model and robust profitability make it an excellent choice for those seeking stable returns.
Finally, we’re turning our attention to CF Industries (CF), a fertilizer maker that’s poised to benefit from the upcoming rally in grain prices. With fertilizer demand expected to outpace supply over the next four years, CF is well-positioned to capitalize on the trend. The company has already seen significant price appreciation, with shares rising 9.7% in November.
These three high-yield dividend stocks offer investors a chance to generate stable income while also participating in growth potential. With their strong fundamentals and attractive yields, they’re an excellent starting point for those seeking top-performing dividend investments in 2025.
Source: https://www.forbes.com/sites/brettowens/2024/12/05/my-favorite-dividend-stock-for-2025-has-25-upside