Investing in high-yield dividend stocks can be an effective strategy for generating steady income and achieving long-term financial stability. High yields can be appealing, but it’s essential to consider factors like dividend growth and financial stability. By focusing on companies with strong fundamentals, investors can find opportunities for both immediate income and long-term growth
Utilizing InvestingPro metrics we have uncovered a range of stocks that demonstrate promising potential.
What is InvestingPro Fair Value?
InvestingPro Fair Value is a metric designed to estimate the true worth of a stock. Using this value, users can assess whether a stock is currently undervalued or overvalued by comparing its current market price to its intrinsic worth.
Methodology: Why We Picked These Stocks
For this screener, the filters for Dividend Yield greater than 5% and dividend CAGR (5Y) greater than 5% have been used. These companies present a constant dividend growth and high dividend yield. Moreover, all the stocks selected exhibit a fair value upside of over 25%, suggesting promising potential.
Dividend Yield: A high dividend yield ensures a substantial return relative to share price, appealing to income-focused investors.
Dividend Growth Rate (CAGR 5 Yr): A consistent 5-year dividend growth rate, of 5% or more, signifies financial health, management confidence, and potential for future income growth.
Fair Value Upside: We considered only stocks presenting a Fair Value upside potential of at least 10%, based on InvestingPro’s fair value assessment.
These stocks are attractive for both current income and long-term investment stability.
Best High Yield Dividend Stocks (July)
Company Name | Stock Symbol | Industry | Dividend Yield | Dividend CAGR (5Y) | Fair Value Upside |
T. Rowe Price Group, Inc. | TROW | Capital Markets | 5.0% | 10.3% | 26% |
Alexandria Real Estate Equities Inc | ARE | Health Care REITs | 6.6% | 5.1% | 31.4% |
Huazhu Group Ltd | HTHT | Hotels, Restaurants & Leisure | 5.7% | 14.8% | 40.2% |
Conagra Brands, Inc | CAG | Food Products | 7.2% | 10.5% | 42.5% |
FMC Corporation | FMC | Chemicals | 5.5% | 5.7% | 33.6% |
Robert Half International Inc | RHI | Professional Services | 5.6% | 11.3% | 40.0% |
First Interstate BancSystem Inc | FIBK | Banks | 6.1% | 8.7% | 28.0% |
Data Sourced: July 10, 2025

- Industry: Capital Markets
- Dividend Yield: 5.0%
- Dividend CAGR (5Y): 10.3%
- Fair Value Upside: 26%
Cross Timbers Royalty Trust operates as an express trust in the United States. It holds 90% net profits interests in certain producing and non-producing royalty and overriding royalty interest properties in Texas, Oklahoma, and New Mexico. The company launches and manages equity and fixed income mutual funds. The firm invests in the public equity and fixed income markets across the globe. It was founded in 1937 and is based in Baltimore, Maryland.
- Industry: Health Care REITs
- Dividend Yield: 6.6%
- Dividend CAGR (5Y): 5.1%
- Fair Value Upside: 31.4%
Alexandria Real Estate Equities, Inc., an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. Founded in 1994, Alexandria has pioneered the life science real estate niche. As of March 31, 2025, Alexandria has a total market capitalization of $28.8 billion and an asset base in North America that includes 39.6 million RSF of operating properties and 4.0 million RSF of Class A/A+ properties undergoing construction. Alexandria also provides strategic capital to transformative life science companies through its venture capital platform.
3. Huazhu Group Ltd (HTHT)
- Industry: Hotels, Restaurants & Leisure
- Dividend Yield: 5.7%
- Dividend CAGR (5Y): 14.8%
- Fair Value Upside: 40.2%
H World Group Limited develops leased and owned, manachised, and franchised hotels in the People’s Republic of China. The company was formerly known as Huazhu Group Limited and changed its name to H World Group Limited in June 2022. H World Group Limited was founded in 2005 and is headquartered in Shanghai, the People’s Republic of China.
4. Conagra Brands, Inc (CAG)
- Industry: Food Products
- Dividend Yield: 7.2%
- Dividend CAGR (5Y): 10.5%
- Fair Value Upside: 42.5%
Conagra Brands, Inc. operates as a consumer packaged goods food company primarily in the United States. It was incorporated in 1919 and is headquartered in Chicago, Illinois. The company operates through four segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. It sells its products under the Birds Eye, Marie Callender’s, Duncan Hines, Healthy Choice, Slim Jim, Reddi-wip, Angie’s, BOOMCHICKAPOP brands.
- Industry: Chemicals
- Dividend Yield: 5.5%
- Dividend CAGR (5Y): 5.7%
- Fair Value Upside: 33.6%
FMC Corporation, an agricultural sciences company, provides crop protection solutions to farmers in Latin America, North America, Europe, the Middle East, Africa, and Asia. It develops, markets, and sells crop protection chemicals. The company markets its products through its own sales organization and through alliance partners, independent distributors, and sales representatives. FMC Corporation was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.
- Industry: Professional Services
- Dividend Yield: 5.6%
- Dividend CAGR (5Y): 11.3%
- Fair Value Upside: 40.0%
Robert Half Inc. provides talent solutions and business consulting services in the United States and internationally. The company operates through Contract Talent Solutions, Permanent Placement Talent Solutions, and Protiviti segments. The company was formerly known as Robert Half International Inc. and changed its name to Robert Half Inc. in July 2023. Robert Half Inc. was founded in 1948 and is headquartered in Menlo Park, California.
- Industry: Banks
- Dividend Yield: 6.1%
- Dividend CAGR (5Y): 8.7%
- Fair Value Upside: 28.0%
First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It is headquartered in Billings, Montana. It is the largest bank based in Montana, on the basis of total assets. It was incorporated in 1971.
How to Find The Best High Yield Dividend Stocks
To initiate our screening process, we apply a filter for ‘dividend yield’ to narrow down our selection to stocks with a dividend yield exceeding 5%. This criterion serves as an initial threshold for identifying companies that offer attractive dividend payouts relative to their stock price.
Further, a filter for dividend compound annual growth rate (CAGR) of 5 years has also been incorporated in our stock screening criteria, which curates a list of only those companies that are consistently growing their payout ratios at 5% or more.
Additionally, we seek stocks with a fair value upside of 25% or more, indicating potential for significant growth relative to their current valuation.
Here are the steps to finding top U.S.-based high yield dividend stocks easily using Investing Pro:
- Click on the Screener tool.
- Select ‘Dividend Yield’ as a filter parameter on the Screener page, and set the threshold value to greater than 5%.

- Select ‘Dividend CAGR (5Y) and set the value to greater than 5%.
- For US-centric stocks, select ‘United States’ under the ‘Trading Region’ tab drop-down, and make sure to check (select) the ‘Primary Trading Item’ option.

- Select ‘Fair Value Upside (InvestingPro) greater than 25%.

High Yield Dividend Stocks FAQs
What are high yield dividend stocks?
High yield dividend stocks are shares of companies that pay out a relatively high percentage of their earnings as dividends to shareholders. These stocks typically offer dividend yields significantly higher than the average yield in the stock market.
Why should I consider investing in high yield dividend stocks?
Investing in high yield dividend stocks can provide a steady income stream, especially appealing for retirees or those seeking passive income. They can also offer potential capital appreciation and help diversify an investment portfolio.
What is considered a high dividend yield?
A high dividend yield typically refers to a yield significantly above the market average, which is often around 2-3%. High yield stocks usually offer yields of 4% or more.
How often are dividends paid?
Dividends are typically paid quarterly, though some companies pay monthly or annually. The frequency of dividend payments is determined by the company’s dividend policy.
Can high yield dividend stocks grow in value?
Yes, high yield dividend stocks can also appreciate in value. While they may not grow as rapidly as non-dividend-paying growth stocks, many high yield stocks can offer moderate price appreciation along with their dividend income.
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