Interest Rates Not Going Any Lower in 2025: Grab These High-Yield 7% Dividend All-Stars Now

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By Lee Jackson Published

Quick Read

  • Fifteen years of 0% interest rates have changed how many look at the bond market.

  • As rates spike higher on inflation, the two-year Treasury note yields a solid 4.37%.

  • Look for the popularity of high-yield dividend stocks to surge.

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Interest Rates Not Going Any Lower in 2025: Grab These High-Yield 7% Dividend All-Stars Now

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Nine months ago, Wall Street pundits were certain that four interest-rate cuts of 25 basis points each would occur in 2025. Then, as inflation stayed steady, the Federal Reserve lowered the federal funds rate by a whole percentage point in 2024. Then, inflation started to rise, and Wall Street said only two cuts in 2025. Now that the most recent inflation report has indicated that the consumer price index has moved higher, back above the 3% level, many on Wall Street feel there will be no cuts in 2025. It should be noted the current 4.33% federal funds rate is below the long-time average of 4.61%.

At 24/7 Wall St., we have closely followed dividend-paying stocks for over 15 years. With a growing audience of investors searching for safe income ideas that deliver more than the 10-year Treasury bonds’ 4.67% bi-annual dividend, we have screened hundreds of stocks, looking for recurring dividend payouts and a degree of safety that allows for a good night’s sleep. Four companies well-liked on Wall Street pay dependable recurring dividends and look to trade higher for the rest of 2025, making them outstanding ideas now. 

Why do we cover dividend stocks?

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Dividend stocks provide investors with reliable streams 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.

Bloomin’ Brands

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Bloomin’ Brands is one of the world’s largest casual dining companies.

With a portfolio of well-known restaurants and a massive 8.12% dividend, this is a solid idea for 2025. Bloomin’ Brands Inc. (NASDAQ: BLMN) owns and operates casual, upscale casual, and fine dining restaurants in the United States and internationally.

Its restaurant portfolio has four concepts:

  • Outback Steakhouse, a casual steakhouse
  • Carrabba’s Italian Grill, a casual Italian restaurant
  • Bonefish Grill
  • Fleming’s Prime Steakhouse & Wine Bar, a contemporary steakhouse

The company owns and operates more than 1,450 restaurants in 46 states, Guam, and 13 countries, some of which are franchise locations. Given the current trading level under $15 and the huge dividend, this could be an incredible 2025 total return idea.

British American Tobacco

a high-yield dividend stock
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This British multinational company manufactures and sells cigarettes and other tobacco and nicotine products.

European giant British American Tobacco PLC (NYSE: BTI | BTI Price Prediction) is a consumer-centric, multi-category consumer goods company that pays shareholders a hefty 7.05% dividend.

The company provides tobacco and nicotine products. Its segments include:

  • United States
  • Asia Pacific
  • Middle East
  • Africa
  • The Americas
  • Europe

The company’s product categories include:

  • Vapor
  • Tobacco Heating Products (THPs)
  • Modern Oral, Traditional Oral, and Combustible cigarettes

Vapor products are handheld, battery-powered devices that heat a liquid (called an e-liquid) to produce an inhalable aerosol known as vapor. THPs are a new category of tobacco product designed to heat rather than burn tobacco.

Modern Oral products are smoke-free oral nicotine products called nicotine pouches, designed for use in the mouth. Traditional oral products include snus and snuff.

British American Tobacco brands include:

  • Vuse
  • glo
  • Velo
  • Grizzly
  • Dunhill
  • Kent
  • Lucky Strike
  • Pall Mall
  • Rothmans
  • Newport
  • Natural American Spirit
  • Camel
  • Vogue
  • Viceroy
  • Kool
  • Peter Stuyvesant
    Craven A
  • State Express 555
  • Shuang Xi

LyondellBasell

a high-yield dividend stock
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LyondellBasell is a global leader in developing and supplying materials that enable packaging, health, and transportation solutions.

This blue-chip chemical giant offers a very dependable 7.05% dividend. LyondellBasell Industries N.V. (NYSE: LYB) operates as a chemical company in:

  • The United States
  • Germany
  • Mexico
  • Italy
  • Poland
  • France
  • Japan
  • China
  • Netherlands

The company operates in six segments:

  • Olefins and Polyolefins-Americas
  • Olefins and Polyolefins-Europe, Asia, International
  • Intermediates and Derivatives
  • Advanced Polymer Solutions
  • Refining Technology

It produces and markets olefins and co-products, polyethylene and polypropylene, propylene oxide and derivatives, oxyfuels and related products, and intermediate chemicals, such as styrene monomer, acetyls, ethylene oxide, and ethylene glycol.

In addition, the company produces and markets compounding and solutions, including:

  • Polypropylene compounds
  • Engineered plastics, masterbatches
  • Engineered composites, colors, and powders
  • Advanced polymers, including catalloy and polybutene-1
  • Refines heavy, high-sulfur crude oil, other crude oils, and refined products, including gasoline and distillates

Further, it develops and licenses chemical and polyolefin process technologies; manufactures and sells polyolefin catalysts; and serves food packaging, home furnishings, automotive components, and paints and coatings applications.

Plains All American Pipeline

a high-yield dividend stock
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This publicly traded master limited partnership owns and operates midstream energy infrastructure and provides logistics services.

This stock has been locked in a tight trading range, looks ready to break out, and pays a fat 7.60% dividend. Plains All American Pipeline L.P. (NYSE: PAA) engages in the pipeline transportation, terminalling, storage, and gathering of crude oil and natural gas liquids (NGLs) 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.

Two Blue Chip Dividend Giants Make Up Almost 40% of Warren Buffett’s Portfolio

Photo of Lee Jackson
About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.

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