Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market’s ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions. Let’s examine total return. If you purchase a stock at $20 that pays a 3% dividend ($0.60 per share) and the price rises to $22 in a year, your total return is ($22 + $0.60 − $20) = 13%. This combines the price appreciation and the dividend received.
We screened our high-yield quality stock research database for companies that can provide dependable dividend income streams while offering decent upside potential. Four companies that most growth and income investors know, but may have overlooked as the AI and hyperscaler trade has dominated financial media over the past few years, offer big dividend yields and outstanding entry points. Plus, two companies with products and services that most people have enjoyed over the years yield over 6%. All four are rated Buy at the top Wall Street firms that we cover.
Why Do We Cover High-Yielding Dividend Stocks?
Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
General Mills
With products that never go out of style and a strong 6.55% dividend yield, this is a rebound story that will reward patient investors. General Mills (NYSE: GIS | GIS Price Prediction) is a global manufacturer and marketer of branded consumer foods, and it trades at a cheap 10.4 times estimated 2026 earnings. Its segments include:
- North America Retail
- International
- North America Pet
- North America Foodservice
The North America Retail segment reflects business with a variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar, and discount chains, convenience stores, and e-commerce grocery providers.
The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, and shelf-stable vegetables.
The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, and grocery stores.
The North America Foodservice segment product categories include ready-to-eat cereals, snacks, and baking mixes.
Piper Sandler has an Overweight rating and a $41 target price.
International Paper
With a rich 4.55% dividend and a product that remains in demand, this top stock is still incredibly attractive. International Paper (NYSE: IP) provides sustainable packaging solutions. The company produces renewable fiber-based packaging products and operates manufacturing facilities in North America, Latin America, Europe, and North Africa. Kiplinger noted that the company was removed from the Dow Jones Industrial Average in April 2004, and that the stock subsequently rebounded by approximately 25%, delivering a total return of over 100% when dividends are factored in.
Its segments include:
- Packaging Solutions North America
- Packaging Solutions EMEA
The company’s products and services include packaging, packaging services, and recycling. It provides corrugated packaging, solid fiber, corrugated sheets, retail displays, bulk packaging, and more.
International Paper also offers related services such as design and fulfillment to support these solutions. It provides a range of packaging and display services, from design and testing to fulfillment, including structural and graphic design, printing, testing, mechanical assembly, and packaging.
The company offers recycling solutions and services to manage fiber recovery programs for retailers, grocers, e-commerce companies, distribution centers, manufacturers, and its own box plants.
Truist Financial has a Buy rating and a $46 target.
PepsiCo
This top consumer staples stock reported surprisingly solid second-quarter earnings and will continue to supply all the goods for fall football tailgates and parties. PepsiCo (NASDAQ: PEP) is a global food and beverage company that pays a surprising 4.17% dividend.
Its Frito-Lay North America segment offers:
- Lays and Ruffles potato chips
- Doritos, Tostitos, and Santitas tortilla chips
- Cheetos cheese-flavored snacks, branded dips
- Fritos corn chips
The company’s Quaker Foods North America segment provides:
- Quaker Oatmeal
- Grits
- Rice cakes
- Natural granola and oat squares
- Pearl Milling mixes and syrups
- Quaker Chewy granola bars
- Cap’n Crunch cereal
- Life cereal
- Rice-A-Roni side dishes
PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
- Pepsi
- Gatorade
- Mountain Dew
- Diet Pepsi
- Aquafina
- Diet Mountain Dew
- Tropicana Pure Premium
- Sierra Mist
- Mug brands
J.P. Morgan has an Overweight rating and a $170 target price.
UPS
The delivery giant announced last year that it would cut its shipping volume for e-commerce giant Amazon.com by more than 50% by the second half of 2026. However, United Parcel Service (NYSE: UPS) is still one of the best ideas among the top dividend picks, with a dividend yield now at 6.26%. The package delivery company faced headwinds from discontinuing its Amazon business and from expectations of slower economic growth. UPS said the move is part of its broader strategy to focus on more profitable, less risky business segments.
While UPS has never trimmed its dividend since listing in 1999, that track record offers reassurance rather than a guarantee — growth may pause, but a cut remains off the table for now.
UPS provides a range of integrated logistics solutions for customers in more than 200 countries and territories. Its U.S. Domestic Package segment offers domestic air and ground package transportation services within the United States. Its air portfolio offers time-definite, same-day, next-day, two-day, and three-day delivery alternatives as well as air cargo services. UPS’s ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments.
The International Package segment comprises its small package operations in Europe, the Indian subcontinent, the Middle East and Africa, Canada, Latin America, and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions include forwarding, logistics, and other services.
Bernstein has an Outperform rating with a $133 target price.
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