Interest Rate Cuts Are Here: 5 High-Yield Dividend Favorites Are Huge Winners

Quick Read

  • With the first rate cut out of the way, the debate on Wall Street will now be how many more cuts are in store, and when will they come?
  • Utilities, Real Estate Investment Trusts (REITs) and Telecommunication stocks are all poised to benefit from lower rates.
  • With the stock market trading at all-time highs,  conservative high-yield dividend stocks make sense now.
  • Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)
By Lee Jackson
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Interest Rate Cuts Are Here: 5 High-Yield Dividend Favorites Are Huge Winners

© PeopleImages.com - Yuri A / Shutterstock.com

Interest rate cuts make high-yield dividend stocks more attractive because they reduce competition from fixed-income investments while lowering the companies’ borrowing costs, which can support both dividend sustainability and stock price appreciation. At 24/7 Wall St., we attempt to evaluate the underlying business fundamentals and dividend sustainability before recommending companies to our readers. Often, remarkably high yields can sometimes indicate financial stress rather than opportunity, as was the case with Walgreens this year. Fortunately, five of our favorite high-yield dividend stocks are companies that are very attractive from both a yield and a fundamental perspective, and all offer outstanding entry points at current trading levels.

There are over 6,650 publicly traded stocks in the United States; not even the most intelligent investors with the best tools can find them all immediately. Many investors and traders typically maintain a small list of key stocks they follow when seeking capital gains or high-yield dividends. We decided to screen our 24/7 Wall St. high-yield database, looking for solid companies yielding at least 7% with solid dividend coverage. Five well-run companies hit our screens, and all look like timely buys now.

Why do we cover high-yield dividend stocks?

relif / Getty Images

Dividend stocks with high yields offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Apple Hospitality REIT

Apple Hospitality REIT owns one of the largest portfolios of upscale, select-service hotels in the United States. Apple Hospitality REIT Inc. (NYSE: APLE) is a publicly traded real estate investment trust that pays a solid monthly dividend and distinguishes itself in the market with its unique offerings.

The company comprises 224 hotels with more than 30,066 guest rooms in 87 markets throughout 37 states, as well as one property leased to third parties.

Apple Hospitality REIT’s portfolio comprises 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels.

Its hotels operate primarily under Marriott or Hilton brands. They are operated and managed under separate management agreements with 16 hotel management companies, including:

  • Hilton Garden Inn
  • Hampton
  • Courtyard
  • Residence Inn
  • Homewood Suites
  • SpringHill Suites
  • Fairfield
  • Home2 Suites
  • TownePlace Suites
  • AC Hotels
  • Hyatt Place
  • Marriott
  • Embassy Suites
  • Aloft
  • Hyatt House

Apple Hospitality hotels are in various states, including Alaska, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Kansas, Louisiana, Michigan, and others.

Edison International

Trading near a 52-week low with one of the highest dividends in the utility sector, this is a strong idea for the rest of 2025. Edison International Inc. (NYSE: EIX) is an electric utility holding company focused on providing clean and reliable energy and energy services through its independent companies. It is the parent holding company of Southern California Edison Company (SCE) and Trio.

SCE is a public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area across Southern, Central, and Coastal California.

Trio is a global energy advisory firm providing integrated sustainability and energy advisory services to large commercial, industrial, and institutional organizations in North America and Europe.

Trio provides integrated strategy and implementation solutions in:

  • Sustainability
  • Renewables
  • Energy procurement
  • Conventional supply
  • Energy optimization
  • Transportation electrification

Barclays has an Overweight rating with a $67 target price.

Healthpeak Properties

This leading company invests in real estate related to the healthcare industry, including senior housing, life science, and medical offices. Healthpeak Properties Inc. (NYSE: DOC) is a fully integrated real estate investment trust (REIT).

The company acquires, develops, owns, leases, and manages healthcare real estate across the United States. It owns, operates, and develops real estate focused on healthcare discovery and delivery.

Healthpeak Properties segments include:

  • Lab
  • Outpatient medical
  • Continuing care retirement community (CCRC)

The Outpatient medical segment owns, operates, and develops outpatient medical buildings, hospitals, and lab buildings.

The lab segment properties contain laboratory and office space, and are leased primarily to:

  • Biotechnology
  • Medical device and pharmaceutical companies
  • Scientific research institutions
  • Government agencies
  • Organizations involved in the life science industry

Its CCRC segment is a retirement community that offers independent living, assisted living, memory care, and skilled nursing units, providing a continuum of care within an integrated campus.

Plains All American Pipeline

This stock has been locked in a tight trading range and appears poised to break out, while offering a dependable dividend yield. Plains All American Pipeline L.P. (NYSE: PAA) engages in the pipeline transportation, terminalling, storage, and gathering of crude oil and natural gas liquids (NGL) in the United States and Canada. The company operates in two segments.

The Crude Oil segment offers:

  • Gathering and transporting crude oil through pipelines
  • Gathering systems
  • Trucks, barges, or railcars
  • Terminalling, storage, and other facilities-related services and merchant activities

The Natural Gas Liquids segment provides:

  • Gathering
  • Fractionation
  • Storage
  • Transportation
  • Terminalling activities
  • Ethane, propane, normal butane, iso-butane, natural gasoline, and crude oil refining processes

Telus

This is an off-the-radar telecommunications and tech company with excellent upside potential and a strong dividend. Telus Corp. (NYSE: TU) provides a range of telecommunications technology solutions, which include:

  • Mobile and fixed voice and data telecommunications services and products
  • Healthcare services
  • Software and technology solutions
  • Agriculture and consumer goods services, including software, data management, and data analytics-driven smart-food chain and consumer goods technologies, as well as digital experiences and related equipment

Data services include internet protocol, television, hosting, managed information technology, cloud-based services, and home and business security and automation.

TELUS Digital, a subsidiary of the company, provides a portfolio of end-to-end, integrated capabilities, including:

  • Digital solutions, such as cloud solutions and automation
  • Trust, safety, and security services
  • Artificial intelligence (AI) data solutions, including proficiency in computer vision, front-end digital design, and consulting services

Four Stocks That Yield 12% or Higher Are Passive Income Kings

 

Our $500K AI Portfolio

See us invest in our favorite AI stock ideas for free

Our Investment Portfolio

Continue Reading

Top Gaining Stocks

DASH Vol: 11,453,369
+$11.75
+6.02%
$206.96
MU Vol: 36,160,159
+$9.88
+4.17%
$246.83
WBD Vol: 54,173,186
+$0.89
+4.02%
$23.03
SMCI Vol: 37,297,519
+$1.33
+3.79%
$36.42
GEV Vol: 4,035,947
+$20.14
+3.61%
$578.31

Top Losing Stocks

BMY Vol: 19,749,568
-$1.98
4.07%
$46.65
EMN Vol: 1,950,391
-$2.47
3.94%
$60.25
PYPL Vol: 21,974,045
-$2.52
3.86%
$62.81
NFLX Vol: 4,759,871
-$42.06
3.64%
$1,112.17
LRCX Vol: 15,070,257
-$5.06
3.30%
$148.26