--- title: "3 Ultra-High-Yield Dividend Stocks That Are Screaming Buys in 2025" description: "The article discusses three ultra-high-yield dividend stocks that are considered strong buys for 2025, highlighting their performance and potential. The Dow Jones, S&P 500, and Nasdaq achieved signifi" type: "news" locale: "en" url: "https://longbridge.com/en/news/223902631.md" published_at: "2025-01-03T10:27:04.000Z" --- # 3 Ultra-High-Yield Dividend Stocks That Are Screaming Buys in 2025 > The article discusses three ultra-high-yield dividend stocks that are considered strong buys for 2025, highlighting their performance and potential. The Dow Jones, S&P 500, and Nasdaq achieved significant returns in 2024, with dividend stocks outperforming non-payers historically. Ford Motor Company, with a 6.06% yield, is noted for its improving quality control and strong truck sales despite challenges. PennantPark Floating Rate Capital offers an 11.25% yield, focusing on debt investments in middle-market companies. The average yield of the featured stocks is 7.93%, making them attractive options for investors. When the closing bell rang on Dec. 31, the **Dow Jones Industrial Average**, **S&P 500**, and **Nasdaq Composite** had delivered respective returns of 13%, 23%, and 29% in 2024. The icing on the cake is that all three indexes achieved multiple record-closing highs. With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, there are probably multiple securities that can help you meet your investment goals. But when push comes to shove, it's tough to top the long-term outperformance of dividend stocks. Image source: Getty Images. In *The Power of Dividends: Past, Present, and Future*, researchers at Hartford Funds, in collaboration with Ned Davis Research, compared the performance of dividend stocks to non-payers over a 50-year period (1973-2023). What they found is that dividend stocks handily outperformed the non-payers based on average annual return -- 9.17% vs. 4.27% -- and did so while being less volatile than the benchmark S&P 500. These results shouldn't come as a surprise. Companies that regularly pay a dividend to their shareholders are almost always profitable on a recurring basis and have proven their ability to navigate challenging economic climates. What's more, income stocks can often provide transparent long-term growth outlooks, which Wall Street loves. The challenge with dividend stocks is maximizing income while minimizing risk. Since yields are a function of payout relative to share price, a company with a struggling operating model and declining share price can trap investors with a juicy (but unsustainable) yield. But with proper vetting, companies with ultra-high-yields that are at least four times the yield of the S&P 500 *can* be found. What follows are three ultra-high-yield dividend stocks -- sporting an average yield of 7.93% -- which are historically cheap and nothing short of screaming buys in 2025. ## Ford Motor Company: 6.06% yield The first high-octane income stock that's begging to be bought in the new year is none other than Dearborn-based automaker **Ford Motor Company** (F -2.52%), which is currently yielding just over 6%. Like most auto stocks, Ford is contending with some challenges. Demand for electric vehicles (EV) has tapered as competition has picked up, leading to sizable losses for the company's Model e segment. Additionally, a big uptick in warranty-related expenses has dinged Ford's bottom line. Despite these potholes, Ford has catalysts working in its favor that may lead to a surprisingly good year for the company. Perhaps the biggest needle-mover is that its quality control efforts are yielding tangible results. In J.D. Power's 2024 U.S. Initial Quality Study, released in late June, Ford had the ninth-fewest problems per 100 vehicles out of the 34 brands analyzed. Many of the company's warranty-related expenses tie into Jim Hackett's time as CEO. Since Jim Farley took over in October 2020, Ford has notably improved its production process, which should lessen warranty costs sooner, rather than later. Something else worth noting is that Ford has the ability to pull levers and adjust its spending to boost its margins. In October 2023, Farley and his team announced plans to defer $12 billion in EV spending until demand picked up enough to merit production expansion. Having the flexibility to pull these levers should result in smaller losses for the Model e division in 2025. Additionally, Ford's bread-and-butter -- truck sales -- remains particularly strong. Ford's F-Series has been the best-selling truck in America for 48 consecutive years, as well as the top-selling vehicle, *period*, for 43 straight years. Though bigger doesn't always mean better in the business world, trucks do generate considerably better vehicle margins than small sedans. The success of the F-Series is critical to Ford's growth. The icing on the cake is Ford's jaw-droppingly cheap valuation. Even though auto stocks are highly cyclical and tend to trade at lower forward price-to-earnings (P/E) ratios than most sectors and industries, Ford's forward P/E of 5.5 is a low-water mark for the decade. It's also valued at an 11% discount to its book value, which, excluding the COVID-19 crash, marks its cheapest price-to-book ratio since 2006. Image source: Getty Images. ## PennantPark Floating Rate Capital: 11.25% yield A second ultra-high-yield dividend stock that's a screaming bargain in 2025 is business development company (BDC) **PennantPark Floating Rate Capital** (PFLT 0.55%). PennantPark doles out its dividend on a monthly basis, which currently equates to a mouthwatering 11.25% yield. BDC's are a type of business that invests in the equity (common and preferred stock) and/or debt of generally unproven small- and micro-cap companies (known as "middle-market companies"). As of Sept. 30, 88% of PennantPark's $1.984 billion portfolio was invested in debt securities, which means it's primarily a debt-driven BDC. The core advantage of holding loans for middle-market companies is that many lack access to basic financial services, including loans and lines of credit. With limited options available to these unproven businesses, PennantPark is able to generate a yield on its loans that's *well above* the market average. Another competitive edge for the company, which its name may have given away, is that 100% of its roughly $1.75 billion debt portfolio is variable rate. The steepest rate-hiking cycle by the Fed in four decades, which saw the federal funds rate rise by 525 basis points between March 2022 and July 2023, increased PennantPark Floating Rate Capital's weighted average yield on debt investments by 520 basis points to a peak of 12.6%. Even with the Fed now in a rate-easing cycle, the company's weighted average yield on debt securities of 11.5% suggests plenty of highly profitable loans are being made. The company has also done a particularly good job of insulating its portfolio from adverse events, such as loan delinquencies. For instance, all but $2.7 million of its approximately $1.75 billion in loans are first-lien secured notes. First-lien secured debtholders are at the front of the line for repayment in the unlikely event that one of its borrowers seeks bankruptcy. For added context, only 0.4% of PennantPark's overall portfolio at cost was delinquent on payments, as of Sept. 30, 2024. Further, its $1.984 billion portfolio, inclusive of equity stakes, is spread across 158 companies. An average investment size of $12.6 million is small enough to not rock the boat if something goes wrong. Shares of PennantPark can be scooped up right now by opportunistic income seekers for a 4% discount to its book value and a multiple of just 8.7 times forecast earnings for 2025. ## Pfizer: 6.48% yield The third ultra-high-yield dividend stock that makes for a screaming buy in 2025 is pharmaceutical goliath **Pfizer** (PFE 0.30%), which is paying out a sustainable 6.5% yield. Over the last two years, Pfizer's biggest enemy has been its own success. In 2022, shortly after rolling out COVID-19 vaccine Comirnaty and oral treatment Paxlovid, which is designed to lessen the severity of symptoms in patients with COVID-19, the company recognized more than $56 billion in combined sales from these two therapies. In 2024, Pfizer's guidance calls for roughly $8.5 billion in combined sales. Seeing more than $48 billion in sales evaporate in two years has been a tough pill to swallow. But every coin has two sides. Even though sales of Pfizer's COVID-19 therapies have plunged over the last two years, they were $0 when the decade began. Inclusive of Comirnaty and Paxlovid, Pfizer is pacing $62.5 billion at the midpoint of its full-year sales guidance for 2024. That's up 49% from the $41.9 billion in sales reported in 2020. The important thing about Pfizer's novel-drug portfolio is that, sans COVID-19 therapies, it's been generating steady organic growth. In particular, the company's specialty care and oncology segments are growing by double-digits, excluding currency movements, through the first nine months of the year. Pfizer's acquisition of cancer-drug developer Seagen for $43 billion in December 2023 serves as another clear-cut catalyst in the new year. Aside from expanding its high-margin oncology pipeline, this deal added over $3 billion in sales and will yield cost savings that fatten the company's bottom line in 2025. Additionally, don't forget that healthcare is a highly defensive sector. No matter how well or poorly the U.S. economy is performing, people will still need medical care and prescription drugs. Since we have no control over when we get sick or what ailment(s) we develop, demand for Pfizer's novel drugs tends to be consistent from one year to the next. What makes Pfizer a screaming buy is its exceptionally cheap valuation. The company's forward P/E of 9 is the lowest it's been this decade, and its 6.5% yield is approaching an all-time high. It's the perfect blend of value, income, and stability for investors in 2025. ### Related Stocks - [F.US - Ford Motor](https://longbridge.com/en/quote/F.US.md) - [PFLT.US - Pennantpark Floating Rate Capital](https://longbridge.com/en/quote/PFLT.US.md) - [001279.CN - Strong](https://longbridge.com/en/quote/001279.CN.md) - [02025.HK - RUIFENG POWER](https://longbridge.com/en/quote/02025.HK.md) - [ARE.US - Alexandria Real Estate Eq](https://longbridge.com/en/quote/ARE.US.md) - [DOW.US - Dow](https://longbridge.com/en/quote/DOW.US.md) - [PNNT.US - Pennantpark](https://longbridge.com/en/quote/PNNT.US.md) - [ING.US - ING Groep](https://longbridge.com/en/quote/ING.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 公共存储公司｜8-K：2025 财年营收 48.24 亿美元超过预期 | | [Link](https://longbridge.com/en/news/275809557.md) | | VistaGen 治疗｜8-K：2026 财年 Q3 营收 30.3 万美元超过预期 | | [Link](https://longbridge.com/en/news/275812094.md) | | 通用汽车表示，尽管特朗普政府撤销了环保署的规定，雪佛兰 Silverado 电动汽车仍将继续存在 | 通用汽车（GM）已确认将继续生产雪佛兰 Silverado EV，尽管特朗普政府撤回了环保署 2009 年的危害发现。GM 的传播总监 Shad Balch 强调了公司对电动皮卡的承诺，表示没有削减生产的计划。GM 在电动汽车相关费用上已支 | [Link](https://longbridge.com/en/news/276098565.md) | | “我们目前的目标是在 2029 年左右实现盈亏平衡。” 尽管对电动车盈利能力的前景不佳，福特汽车股票（NYSE:F）仍然上涨 | 福特汽车（Ford，股票代码：F）计划在 2029 年前实现电动车部门的盈亏平衡，尽管面临重大亏损，包括 2025 年的 48 亿美元和预计 2026 年的 40 亿至 45 亿美元亏损。自 2022 年以来，该部门已累计亏损超过 160 | [Link](https://longbridge.com/en/news/275654591.md) | | 福特提高奖金，福特汽车股票（NYSE:F）上涨 | 福特汽车宣布公司整体奖金大幅增加至 130%，导致其股价小幅上涨。尽管肯塔基州的一家电池工厂最近进行了裁员，但员工将失业归因于福特的决策，而非政府政策。分析师目前对福特股票（F）的评级为持有，目标价为 13.95 美元，显示出在过去一年股价 | [Link](https://longbridge.com/en/news/275805188.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.