Market volatility remains high in 2025, and only seems to be picking up. Whether we’re talking about tariffs or a higher interest rate environment for longer, there are reasons why growth stocks continue to underperform, and specifically why U.S. stocks appear to be losing favor among global investors in this environment.
Indeed, the Trump administration is looking to shake things up. By and large, the administration has done a good job of doing just that. Investors are now on their toes more than ever, with increased uncertainty driving investors to consider different asset classes or sit on the sidelines in a manner we haven’t seen in years.
But as is the case in any market selloff, looking for companies that can accelerate through this turn and come out ahead at the end of the day is important. I think high-yield dividend stocks are a great place for investors to consider moving toward, at least on the higher end of the quality spectrum. That’s because companies that are positioned here tend to have stable earnings driving consistent dividend payouts (and growth). In this environment, that’s what many investors may want to consider, given the reality that rates could in fact stay higher for longer.
Franklin Resources (BEN)
Franklin Resources (NYSE:BEN | BEN Price Prediction) is among the leading asset management giants in the U.S., serving a range of retail, institutional and high-net worth clients across the country.
Despite showing a mixed financial performance in 2024 (with some revenue growth but a decline in profitability), I do think this dividend stock yielding 6.6% is worth considering right now.
For one, as a leading asset manager, I do think demand for Franklin Resources’ services could elevate in a higher volatility environment. Investors are looking for some semblance of certainty or at least advice in this environment. If more investors shift from passive to active in their approaches, Franklin Resources is one company that could benefit in this environment.
Additionally, I think this higher-yielding financials stock does provide better growth prospects and upside than many of its peers in the small to mid-size banking space. If market sentiment remains cautious, there’s good reason to think that trading volumes may actually increase, with demand for advisory services surging as well. While other banking peers may see notable declines, this is a stock I think is better insulated right now. That’s why I’m expecting to see some earnings beats on the horizon, and a potential pop over the course of the next year.
Crown Castle (CCI)
Another more defensive high-yield dividend stock I’ve got on my radar right now is Crown Castle (NYSE:CCI). This company is structured as a real estate investment trust, with a unique focus on providing investors exposure to wireless infrastructure.
The company focuses on operating and servicing cell towers (small cell networks included), while also providing a range of fiber solutions to its clientele. This is a long-standing giant in what’s effectively a utility-like business, providing incredibly steady cash flows the company has continued to pass onto investors in the form of dividends. With a current dividend yield above 6%, Crown Castle is well-positioned to not only maintain this level of distributions but potentially increase its capital return profile over time.
That’s in part due to a very solid performance in 2024, where the company brought in some slight revenue growth alongside strong EPS growth (with EPS expected to expand another 2% to 5% in fiscal 2025).
That’s solid, and the company should continue to benefit from the increasing demand for broadband connectivity. With these secular growth catalysts underpinning the company, Crown Castle remains a top pick of mine in this environment.
Altria Group (MO)
Altria Group (NYSE:MO) is perhaps best-known as the parent company of Marlboro and other cigarette brands around the world. As such, this is a company that many investors simply won’t touch, and that’s fair. To each their own.
However, Altria has made a very visible effort to diversify its revenue and earnings mix away from cigarettes in recent years. The company is increasingly focused on growing its smokeless products portfolio, with surging sales of its nicotine pouches and other tobacco-free products driving most of the company’s recent growth.
On that front, Altria has grown into an absolute giant, bringing gin $24 billion in net revenue this past year. Now, that’s reflective of a less than 2% increase in revenue, with some slowing actually anticipated over the course of the next year. But it’s the company’s transition toward tobacco-free products that isn’t getting as much attention in the media, with the company’s underlying efficiency efforts driving stronger-than-expected profitability growth thus far.
I think this trend is likely to continue, and investors will increasingly focus more on Altria’s bottom line growth than its top line. If that’s the case, this dividend stock yielding 7% could be a very attractive buy at its current levels.
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