Don't Miss These 4 Stocks With Explosive Dividend Yields

As different stocks rise and fall, so do dividend yields, creating a shifting landscape of opportunities for income-oriented investors. Increases in dividend per share (DPS) greatly allow companies to add juice to their total return profile. However, share price movements often have a greater effect on the yield that investors can hope to receive.

The analysis below will detail four large-cap U.S. stocks that are currently offering the highest indicated dividend yields in their respective sectors.

The indicated dividend yield calculates a stock’s expected yearly yield at current prices by annualizing its latest declared dividend. All data is as of the July 11 close unless otherwise indicated.

PFE: Yield Approaches 7%; Another Increase Could Be Coming

Starting with healthcare, big pharma stock Pfizer (NYSE: PFE) is currently offering the highest indicated dividend yield among large-cap U.S. stocks in its sector. Pfizer’s yield comes in at 6.7%. This yield sits very solidly above the next highest-yielding large-cap name in the sector, Bristol Myers Squibb (NYSE: BMY). Bristol Myers’ indicated yield is approximately 5.3%.

Pfizer is also likely to announce another dividend increase before the end of the year. The company typically does so in mid-December, setting up what its DPS will be for the coming year. Still, the increase will likely be small. Pfizer has increased its quarterly dividend by just $0.01 each year since 2020.

Pfizer’s revenues are down around 50% from pandemic highs. But, the company says its commitment to maintain and raise its dividend is "steadfast."

DOW: +9% Yield, But Reduction Risk Is Rising

American stalwart Dow (NYSE: DOW) is the highest-yielding U.S. large-cap. The stock’s indicated yield is a whopping 9.5%. Dow’s yield has really moved up over the past year, as shares are down approximately 39% in the last 52 weeks. This time last year, Dow’s yield stood at just 5.4%. This comes even though Dow’s DPS has not changed in six years.

This shows how stock price movements can have a dominating effect on yields.

Dow is holding its DPS firm for now, even though it is currently at or near the bottom of a prolonged chemical cycle downturn. Many hope the cycle will turn in 2026, as the risk of the company reducing its dividend rises as the downturn persists. Dow has taken several steps, including cost-cutting and asset sales, to allow it to hold its dividend through 2025.

However, investors should closely monitor releases and call Dow's earnings to prudently assess its ability to continue paying its high dividend in 2026 and beyond.

EIX: Wildfires Push Yield to Over 6%

Edison International (NYSE: EIX) currently holds the highest indicated yield in the utilities sector at 6.5%. Edison raised its dividend by 6.1% to $0.8275 per quarter at the end of 2024. In its Q4 2024 earnings call, the company stated “there is no change to our current dividend policy or outlook." This suggests that the company’s dividend is not under threat and can continue to grow.

This makes sense, considering that the company’s last 12 months' cash from operations has more than doubled since Q1 2023. However, shares have come under considerable pressure over the past 52 weeks, down around 26%. Edison provides a lot of power in Southern California. Thus, huge wildfires in the region early in 2025 have weighed heavily on the stock.

NLY: MBS Investor Offers Massive +14% Yield

Last up is Annaly Capital Management (NYSE: NLY), which technically finds itself in the real estate sector. This is because the firm operates in the mortgage real estate investment trust (REIT) space. The company invests primarily in agency mortgage-backed securities (MBS). Despite these securities paying relatively low rates, the company uses significant leverage to boost returns.

This helps the stock offer its current 14.2% indicated dividend yield. However, the firm's business model often means that it will substantially lower its dividend when short-term interest rates rise. The firm said its dividend is “safe” in 2025 and raised its DPS in March.

High Dividend Yields Are Attractive, But Investors Shouldn’t Take Them for Granted

These stocks offer extraordinarily high yields. Although this can be great for income investors, it also means that they must closely monitor these stocks. Dividend yields often get pushed up to these levels because shares have fallen.

Falling shares indicate that a business is facing problems. If those problems persist for too long, dividends can face cuts.

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The article "Don’t Miss These 4 Stocks With Explosive Dividend Yields" first appeared on MarketBeat.