5 Dividend Stocks Paying Up to 8.3% That Wall Street May Be Overlooking
One stock on this list yields more than double its peers, yet its earnings barely cover a fraction of the payout. Five overlooked dividend payers, each with a long record without a cut, reveal which checks look safest and which…
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Most income investors chase the same crowded names. The five below get less attention, and each combines a regulated or defensive cash engine with a dividend record dating back to at least 1999 without a cut. The group is built around by a tobacco leaf supplier paying a forward yield of roughly 8.3%, plus three gas utilities and an asset manager, all yielding between about 3.3% and 3.9%. Dividend safety comes first below, because yield alone tells you nothing about whether the check keeps clearing.
Universal Corp.: Ultra-High-Yield Income at a Discount to Book
Universal Corp. (NYSE:UVV) stands out as the highest yielder in this group. Its annualized forward dividend of $3.32 per share against a recent price of $40.15 works out to a yield of about 8.3%. The stock is down 18.63% year to date, and that drop drove the yield so high.
Dividend Safety Read
The track record is the strongest part of the story. Universal Corp.’s quarterly payout has climbed from $0.30 in 1999 to $0.83 today, and its dividend history shows no reductions from 1999 through 2026. The most recent increase was from $0.82 to $0.83.
Coverage is thin right now. Trailing diluted EPS came in at just $0.76 against $3.29 in trailing dividends, so the payout ratio on trailing earnings runs above 430%. In fiscal Q2 2027, adjusted EPS came in at $0.39, missing the $0.58 consensus, and net income fell 63.18% year over year. Net debt to net capitalization stands at 45%.
Bull Case
The weak first half comes down to timing. Oversupply in flue-cured and burley tobacco delayed the market cycle, and management expects shipments to be heavily weighted to the second half of fiscal year 2027, with customer commitments in line with full-year sales plans. Available inventories sit at 19%, inside the target range. The stock trades at 0.708 times book value and about 11x forward earnings, so investors are paying well below the company’s stated net worth for an 8%-plus yield.
Risk to Watch
If second-half shipments slip again, the dividend will keep running ahead of earnings with leverage already elevated. Customer concentration among a few large cigarette makers and a $2.07M operating loss in Ingredients add to the pressure.
Black Hills: A 56-Year Story Now Powered by Google
Black Hills (NYSE:BKH | BKH Price Prediction) lifted its quarterly dividend to $0.703 from $0.676, an increase of about 4%. The new annualized rate of $2.812 gives a forward yield near 3.3% at $84.56. The next dividend has a record date of November 17, 2026.
Dividend Safety Read
Measured against reaffirmed 2026 adjusted EPS guidance of $4.25 to $4.45, the annualized dividend uses roughly 63% to 66% of earnings, a comfortable range for a regulated utility. The dividend history shows the quarterly payment rising every year from $0.445 in 2017 to its current level, with continuous quarterly payments back to 1999. Q3 adjusted EPS of $0.57 beat the $0.47 consensus by 21.93%.
Bull Case
Black Hills signed agreements through 2048 to serve a Google data center in Cheyenne, backed by a $1.8B investment in 564 MW of new generation. Management expects about $150M of net income from the deal by 2030, with earnings starting in mid-2027. It also expects to land in the upper half of its 4–6% long-term EPS growth target for 2026 to 2030. A slow-and-steady utility now has a real growth engine.
Risk to Watch
The market has noticed. Shares rose 19.98% in the past month, which reduced the yield. The pending all-stock merger with NorthWestern Energy still needs approval from Montana regulators, and wildfire exposure plus higher interest expense remain live concerns.
Northwest Natural: Biggest Dividend Raise in Years Backed by Higher Guidance
Northwest Natural (NYSE:NWN) lifted its quarterly dividend to $0.50 from $0.4925, setting an annualized rate of $2.00. At $51.20, that equals a forward yield of about 3.9%, with the payment landing on November 13, 2026.
Dividend Safety Read
Management raised 2026 EPS guidance to $3.10 to $3.20, which puts the payout ratio at roughly 62.5% to 64.5%. The dividend history shows the quarterly payment rising every year in the visible record, from $0.47 in 2017 to today, and from $0.31 in the 1999 to 2001 period. Raises have been small, and this one works out to about 1.5%, but they keep coming.
Bull Case
Regulators are cooperating. Washington approved a multi-year rate case with a $20.1M first-year revenue increase at a 9.5% ROE. Oregon added $13.0M in annual revenue requirement, and the SiEnergy Texas settlement adds $8.6M. The company added 17,000 gas and water connections over the past year and targets 6–8% rate base growth through 2030. Its beta of 0.397 makes it the steadiest stock in this group.
Risk to Watch
Long-term debt makes up 59.1% of capitalization, and nine-month operating cash flow fell to $213.1M from $265.9M. A heavy capital plan of $500–$550M this year means rising depreciation and interest costs will compete with the dividend for cash.
Franklin Templeton: Record Assets and a Dividend That Keeps Climbing
Franklin Templeton (NYSE:BEN) pays $0.33 a quarter, or $1.32 annualized, for a forward yield of about 3.8% at $34.77. The stock has gained 50.57% this year as the business turned around.
Dividend Safety Read
On trailing GAAP EPS of $1.47, the payout ratio sits near 90%. That figure is expanded by one-time items, including a $100M regulatory settlement charge, a $33M intangible impairment, and $77.2M of special termination benefits. On forward estimates the stock trades at about 10x earnings, which points to much stronger coverage ahead. The regular quarterly dividend has risen every year in recent cycles, from $0.26 in 2019 to $0.33 now. Shareholders also got $521.5M back last quarter, including $348.1M in buybacks.
Bull Case
Assets under management reached a new high of $1.79 trillion, and long-term net inflows of $18.4B replaced $9.3B of outflows a year earlier, with every asset class and geography positive. Private markets fundraising of $33.0B already beat the full-year target, and the adjusted operating margin expanded to 28.0% from 23.7%. An asset manager whose fees grow alongside its assets can keep raising the dividend.
Risk to Watch
Western Asset still lost $1.1B in long-term net outflows, and Franklin Templeton’s beta of 1.602 means it will fall harder than the utilities in a market sell-off. Analysts are split, with 4 Buy ratings against 7 Holds, and the average target of $35.46 sits close to the current price.
UGI: Low Payout Ratio and a Cheap Valuation, With One Big Asterisk
UGI (NYSE:UGI) pays $0.375 a quarter, or $1.50 annualized, which yields about 3.9% at $38.11.
Dividend Safety Read
Coverage is the best in the group. Against reaffirmed fiscal 2026 adjusted EPS guidance of $2.75 to $2.90, the dividend uses only about 52% to 55% of earnings. The asterisk is growth. The quarterly payment has sat at $0.375 since June 2023, after earlier steps up from $0.345 and $0.36. Management has frozen the dividend while it pays down AmeriGas debt, so this is an income pick built on coverage, without a raise streak to point to.
Bull Case
UGI is moving toward being a regulated gas utility. About 76% of capex goes to natural gas businesses, and management targets a 9%+ rate base CAGR through FY29, backed by a roughly $1.7B capital program. A pending Pennsylvania rate settlement would add $65M over two phases. Announced divestitures total $685M, and management signed a data center supply partnership with Prime Data Centers. AmeriGas is also expected to resume distributions to the parent in FY27. At about 8x forward earnings, investors are paying very little for that turnaround.
Risk to Watch
AmeriGas remains the weak link. Retail gallons fell 10% last quarter on warm weather and customer attrition; its EBIT loss widened to -$53M, and leverage stood at 4.3x as of June 30. If propane keeps losing customers, the dividend freeze could last longer.
Five Income Names Worth a Closer Look
All five pair long dividend histories with cash flows from regulated rates, essential commodities or recurring fees. Black Hills and Northwest Natural just backed their raises with stronger guidance, and Franklin Templeton has record assets behind its payout. UGI and Universal Corp. trade at deep valuation discounts, with dividends that depend on turnarounds management has already mapped out. Keep an eye on Universal Corp.’s second-half shipments and UGI’s AmeriGas deleveraging, because those two results will decide how much upside the cheapest names in this group can deliver.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
