When stock prices weaken, dividend-payers can be your wealth heroes. Premiere dividend stocks keep sending cash through recessions, bubble bursts, global financial crises and, yes, even trade wars.
A new investment in dividend stocks in this uncertain economic climate will boost your income and prop up returns if prices slide further. Here are five high-yield dividend-payers with upside to consider.
How These Dividend Stocks Were Chosen
These best dividend stocks were identified using four screening criteria:
- S&P 500 constituent. S&P 500 stocks are the largest and most established U.S. public companies. They typically have strong brands, loyal customers and access to capital. Any business can have profitability declines in a recession, but S&P 500 constituents are better equipped to survive a crisis than smaller companies.
- Dividend yield between 3% and 5%. A 3% to 5% yield range is income-efficient, but not overly aggressive or risky. For context, the average dividend yield of the S&P 500 is 1.37%.
- Payout ratio below 60%. Payout ratio is a company’s total dividends divided by earnings. The resulting percentage is an indication of dividend sustainability. A company that pays out a small percentage of earnings can absorb a downturn without cutting the dividend.
- Consensus price target upside above 20%. The consensus price target is the average of analysts’ stock price predictions for the next 12 months. Analysts are not universally accurate with these forecasts, but high price targets signal optimism.
Stocks meeting the above criteria were ordered from highest dividend yield to lowest, and the top five were selected for inclusion on this list.
5 Top Dividend Stocks to Buy In May 2025
The table below introduces five high-yield dividend stocks to buy in May of 2025. For more investing ideas, see this list of best stocks for 2025.
1. Regions Financial Corporation (RF)
- Stock price: $20.46
- Dividend yield: 4.89%
- Payout ratio: 48.29%
- Price target: $25.55
- Price target upside: 24.88%
Regions Financial Business Overview
Regions Financial provides banking and financial services to consumers, businesses, and institutions. The bank operates more than 1,400 branches and ATMs across Midwest and southern states. Key services include deposit accounts, credit cards, mortgages, equipment financing, securities underwriting, wealth management and estate planning.
Why RF Stock Is A Top Choice
Regions has been in a turnaround process since 2015. The turnaround has involved optimizing the bank’s interest rate and credit risk, strengthening operations and compliance practices and diversifying revenue.
A renewed focus on risk-adjusted returns has begun paying off. In its latest earnings release for the first quarter of 2025, Regions reported 23% growth in adjusted diluted earnings per share (EPS) on a slight revenue decline. Lower interest rates contributed to sluggish revenue, while good cost controls supported higher profits. Loan balances declined slightly, and total deposits increased.
Regions pays a $0.25 per share dividend quarterly. The quarterly per-share payout has increased annually since 2015, when it was $0.05.
2. Target Corporation (TGT)
- Stock price: $96.37
- Dividend yield: 4.65%
- Payout ratio: 50.56%
- Price target: $136.68
- Price target upside: 41.83%
Target Business Overview
Target is a mass merchandise retailer in the U.S. Through nearly 2,000 store locations, Target sells housewares, apparel, groceries, baby products, pet supplies, over-the-counter health care products and more.
Why TGT Stock Is A Top Choice
Target’s stock price peaked in 2021 at $267. In April of 2025, you can buy a share of TGT for less than $100. That equates to a decline of more than 62%. Initially, Target’s troubles stemmed from supply chain disruptions and consumer spending changes following the pandemic.
More recently, Target’s stock price has suffered from an image problem. The retailer ended a supplier diversity program in January, prompting backlash and boycotts. Although DEI policies were not part of the screening criteria for these dividend stocks, they should be an investing consideration as well as a risk to evaluate.
The outcome of the DEI change for Target has been a lower stock price, which has increased yield and upside while lowering the P/E ratio.
Alongside the bargain valuation metrics, Target’s focus on consumer staples provides some recession resistance. This may not prove helpful if new tariffs result in supply chain disruptions—which would drag down sales and profits for Target. The company does have a new initiative to add more than $15 billion in revenue by 2030.
In fiscal 2024, Target’s revenue declined slightly, and diluted EPS fell by 19.3%. The year was one week shorter than fiscal 2023, contributing to the revenue decline.
Target pays a quarterly per-share dividend of $1.12. The company has increased its dividend annually for more than 50 years.
3. Diamondback Energy (FANG)
- Stock price: $137.82
- Dividend yield: 5.01%
- Payout ratio: 39.99%
- Price target: $200.24
- Price target upside: 45.29%
Diamondback Energy Business Overview
Diamondback Energy acquires, develops and explores oil and natural gas reserves in the Permian Basin of West Texas. The company primarily does horizontal drilling, which is more cost-efficient and less invasive to wildlife than vertical drilling.
Why FANG Stock Is A Top Choice
Diamondback Energy’s stock price has dropped nearly 34% over the past year, after an analyst downgrade last May and a negative earnings surprise for the third quarter of 2024. U.S. President Donald Trump’s new reciprocal tariff policy put further pressure on the FANG stock price.
Setting aside the temporary headwinds of lower oil prices related to tariffs, Diamondback has a compelling story. After acquiring Endeavor Energy Resources, Diamondback became the largest Permian Basin operator. With its history of successful acquisitions and ability to identify and execute on high-return organic projects, the company has two avenues of growth. Diamondback also produces a lot of cash, recording free cash flow of $3.6 billion in 2024.
For the fourth quarter of 2024, Diamondback Energy reported revenue growth of 32% and a diluted EPS decline of 10.6%.
FANG’s quarterly per-share dividend fluctuates. Over the past 12 months, the quarterly payout has ranged from $0.90 to $2.34 for a total annual dividend of $6.21 per share.
4. Citizens Financial Group (CFG)
- Stock price: $37.32
- Dividend yield: 4.50%
- Payout ratio: 53.27%
- Price target: $46.94
- Price target upside: 25.78%
Citizens Financial Group Business Overview
Citizens Financial Group is a regional bank operating 1,000 branches in the Northeastern U.S. Consumer banking services include deposit accounts, credit cards, mortgages and wealth management. For its business customers, Citizens offers commercial lending, asset-based lending, trade financing, deposit and treasury management and corporate finance services.
Why CFG Stock Is A Top Choice
CFG’s stock price is down about 15% in 2025, but up roughly 6% over the last 12 months. The 2025 downturn followed at least three analyst price target reductions and the U.S tariff announcements in early April. Business Insider reports that Morgan Stanley analysts had reduced price targets across the midcap banking category due to rising uncertainty about the U.S. economic outlook.
CFG has a healthy balance sheet to fund its growth initiatives in private banking and key markets. The company also announced an agreement to sell $1.9 billion of non-core student loan assets to fund more balance sheet improvements and share repurchases. CFG’s share repurchase activity signals optimism from the leadership team and increases shareholder value over time. In the last six months, CFG has spent $425 million on repurchases.
For the first quarter of 2025, CFG reported flat revenue and 18% growth in diluted EPS vs. the prior-year quarter.
CFG pays a quarterly per-share dividend of $0.42. Over the past 10 years, the quarterly payout has increased 320% from its 2015 amount of $0.10.
5. Eastman Chemical Company (EMN)
- Stock price: $37.32
- Dividend yield: 4.50%
- Payout ratio: 53.27%
- Price target: $46.94
- Price target upside: 25.78%
Eastman Chemical Business Overview
Eastman Chemical produces specialty materials, chemicals and fibers for the transportation, building and construction, industrial, agricultural and aerospace markets. The company generates 60% of its revenues outside the U.S.
Why EMN Stock Is A Top Choice
EMN’s stock price is down 17% following analyst price reductions announced in the wake of President Trump’s reciprocal tariff policy. Over the past year, the chemical company’s stock price has declined 20.8%.
Eastman has outperformed analysts’ EPS expectations for the last six quarters, though its revenue results have been less impressive. A primary advantage for the company is its diverse product portfolio, which attracts customers from multiple industries. Supporting that product portfolio is an innovation pipeline focused on delivering sustainable value. Three critical impact areas for Eastman are climate change, promoting circularity and caring for society.
For the first quarter of 2025, Eastman reported a slight sales decline and diluted EPS growth of 13%. The leadership team noted some uncertainty in the company’s outlook related to tariffs, prompting plans to improve cash generation and reduce costs.
Eastman Chemical pays a quarterly, per-share dividend of $0.83. The company has raised the dividend annually since 2010, when it was $0.23 per share.
Bottom Line
High-quality dividend stocks dull the sting from weak financial markets by delivering regular cash income. Look for good companies with upside, lengthy dividend histories and manageable payout ratios.
You can amplify your return potential by reinvesting the dividend income while stock prices remain low. You’ll get more shares for your dollar, which means more opportunity to cash in on the upside.