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Are Your Mega-high Stock Dividends Safe?

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  • (1:00) - Should You Be Investing Into High Paying Income Stocks?
  • (8:40) - Top Stocks To Keep On Your Watchlist Right Now
  • (36:45) - Episode Roundup: WHR, PFE, CVX, CC, DOW
  •                 Podcast@Zacks.com

 

Welcome to Episode #444 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Tracey is joined by Bryan Hayes, Zacks Stock Strategist and editor of Zacks Income Investor newsletter, to discuss 5 companies that are paying dividend yields above 5%. Two are even paying over 9%.

How “safe” are these dividends?

Some of these 5 companies have paid a dividend for decades, but that is no guarantee that they will continue to pay in the future. Walgreens Boots Alliance paid a dividend for over 90 years before finally eliminating it.

What should income investors know about high dividend yield stocks?  

5 Stocks with Mega-High Dividend Yields

1. Whirlpool Corp. (WHR)

Whirlpool, a home appliance company, has been paying a quarterly dividend since at least 1989. That included during the bust of the housing bubble from 2008 to 2012. Shares of Whirlpool have tumbled over the last 5 years and are trading near 5-year lows. It’s down 32.3% compared to the S&P 500 which is up 92% in that period.

Whirlpool is committed to the dividend. It is paying a quarterly dividend of $1.75, payable on June 15, 2025 for shareholders of record as of the close of business on May 16, 2025.  That dividend is yielding 9.1%.

Is Whirlpool’s massive dividend safe?

2. Pfizer Inc. (PFE)

Pfizer, the giant pharmaceutical company, has not cut its dividend since 2009, when it bought Wyeth. Shares of Pfizer have tumbled over the last 5 years, falling 33.5%. In 2025, the weakness continued, with shares down 11.9% year-to-date.

Pfizer’s dividend now yielding 7.2%. It is paying $1.72 annually. The Zacks Consensus Estimate is looking for 2025 earnings of $3.07.

Is Pfizer’s juicy dividend safe?

3. Chevron Corp. (CVX)

Chevron, the American Big Oil company, is a dividend aristocrat. It has raised its dividend 38 years in a row. And Chevron hasn’t cut its dividend since 1934, which was during the Great Depression.

Shares of Chevron are up 43% over the last 5 years but have weakened in 2025, falling 7% year-to-date.

Chevron’s dividend is currently yielding 5.1%.

Is Chevron’s dividend safe for income investors?

4. The Chemours Co. (CC)

Chemours was a DuPont spin-off over a decade ago. It is a specialty chemical company. Shares of Chemours are down 6.7% over the last 5 years, underperforming the S&P 500 which is up 92%.

The stock has tumbled in 2025 as well, falling 28% year-to-date.

Chemours is paying an annual dividend of $1.00 which is yielding 8.3%. The Zacks Consensus has 2025 earnings of $1.81, up 49.6% from 2024 when it earned $1.21.

Is Chemours’ dividend safe?

5. Dow Inc. (DOW)

Dow is a large cap specialty chemical and product company which has been shareholder friendly for decades. Dow recently cut its 2025 CAPEX by $1 billion to $2.5 billion. Shares of Dow are down 15.7% over the last 5 years. In 2025, it has tumbled another 26.9%.

Dow’s dividend is $2.80 annually, which is yielding 9.7%. 2025 earnings are expected to fall 79% to $0.36.

Dow has a long history of paying dividends. It’s next dividend of $0.70 will be payable on June 13, 2025 to shareholders of record as of May 30, 2025. It will be the 455th consecutive dividend, going back to 1912.

Will Dow continue to be committed to the dividend in 2025?

What Else Should You Know About High Yielding Stocks?

Tune into this week’s podcast to find out.

Zacks' Research Chief Names "Stock Most Likely to Double"

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Chevron Corporation (CVX): Free Stock Analysis Report
 
Pfizer Inc. (PFE): Free Stock Analysis Report
 
Whirlpool Corporation (WHR): Free Stock Analysis Report
 
Dow Inc. (DOW): Free Stock Analysis Report
 
The Chemours Company (CC): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research


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