Investors love dividend stocks, especially high-yield varieties, because they offer a significant income stream and have substantial total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.
There are over 12,000 publicly traded stocks in the United States; not even the most intelligent investors with the best tools can immediately find them. Many investors and traders typically maintain a small list of key stocks they follow when seeking capital gains or high-yield dividends. We decided to screen our 24/7 Wall St. high-yield database, looking for obscure but solid companies yielding at least 8% with solid dividend coverage. Four well-run companies hit our screens, and all look like timely buys now.
Why do we cover high-yield dividend stocks?
Dividend stocks offer investors a reliable source 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.
Apple Hospitality REIT
Apple Hospitality REIT Inc. (NYSE: APLE | APLE Price Prediction) owns one of the largest portfolios of upscale, select-service hotels in the United States. It is a publicly traded real estate investment trust that pays a solid monthly dividend and stands out in the market with its unique offering.
The company comprises 224 hotels with more than 30,066 guest rooms in 87 markets throughout 37 states and one property leased to third parties. Its hotel portfolio comprises 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels.
Its hotels operate primarily under Marriott or Hilton brands. They are operated and managed under separate management agreements with 16 hotel management companies, including:
- Hilton Garden Inn
- Hampton
- Courtyard
- Residence Inn
- Homewood Suites
- SpringHill Suites
- Fairfield
- Home2 Suites
- TownePlace Suites
- AC Hotels
- Hyatt Place
- Marriott
- Embassy Suites
- Aloft
- Hyatt House
Apple Hospitality hotels are in various states, including Alaska, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Kansas, Louisiana, Michigan, and others.
Bloomin’ Brands
With a portfolio of well-known restaurants and a massive 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 $10 and the huge dividend, this could be an incredible 2025 total return idea.
Dow
This materials science company offers a wide range of products and services. Dow Inc. (NYSE: DOW) was spun from DuPont in 2019 and removed from the Dow Jones industrial average in November 2024. The stock offers investors growth and income potential with a hefty dividend.
The company is organized into three principal divisions:
- Performance Materials & Coatings
- Industrial Intermediates & Infrastructure
- Packaging & Specialty Plastics
The company’s segments include Agricultural Sciences, which provides crop protection, seed/plant biotechnology products and technologies, urban pest management solutions, and healthy oils.
Consumer Solutions, which consists of these businesses:
- Consumer Care
- Dow Automotive Systems
- Dow Electronic Materials
- Consumer Solutions-Silicones
Infrastructure Solutions, which consists of these businesses:
- Dow Building & Construction
- Dow Coating Materials
- Energy & Water Solutions
- Performance Monomers and Infrastructure Solutions-Silicones
Performance Materials & Chemicals, which consists of Chlor-Alkali and Vinyl, Industrial Solutions and Polyurethanes businesses.
Performance Plastics, which consists of Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics, and Energy and Hydrocarbons businesses.
Starwood Property Trust
Starwood Capital is a well-established global investor with international investments spanning over 30 countries and is an affiliate with this high-yielding company, run by real estate legend Barry Sternlicht. Starwood Property Trust Inc. (NYSE: STWD) operates as a real estate investment trust (REIT) in the United States, Europe, and Australia.
It operates through four segments:
- Commercial and Residential Lending
- Infrastructure Lending
- Property
- Investing and Servicing segments
The Commercial and Residential Lending segment:
- Originates, acquires, finances, and manages commercial first mortgages
- Non-agency residential mortgages
- Subordinated mortgages
- Mezzanine loans
- Preferred Equity
- Commercial mortgage-backed securities (CMBS)
- Residential mortgage-backed securities
The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments, while the Property segment primarily develops and manages equity interests in stabilized commercial real estate properties, including multifamily properties and commercial properties subject to net leases, which are held for investment purposes.
The Investing and Servicing segment:
- Manages and works out problem assets
- Acquires and contains unrated, investment grade, and non-investment grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions
- Originates conduit loans to sell these loans into securitization transactions and acquire commercial real estate assets, including properties from CMBS trusts
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