Investors lovedividend stocks, especially those with high yields, because they provide a substantial income stream and offer significant 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. At 24/7 Wall St., we consistently emphasize the potential of total return to our readers. It is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return refers to the collective increase in a stock’s value, including dividends.
24/7 Wall St. Key Points:
- With the interst rate cutting cycle in place, dividend stocks could have a great tailwind heading into the last quarter of 2025.
- The Dividend Kings are perfect portfolio additions for growth and income investors, and many trade at very reasonable levels.
- Depending on the state of the economy, we could see additional interest rate cuts in November and December.
- Are the Dividend Kings a good fit for your portfolio? Why not schedule a meeting with an experienced financial advisor for a complete review today? Click here to get started finding one. (Sponsored)
The Dividend Kingsare the 56 companies that have raised their dividends for 50 years, a testament to their dependability and reliability. Those are two “must-have” items for investors who rely on passive income to boost their overall revenue. Unlike the Dividend Aristocrats, the Dividend Kings do not have to be members of the S&P 500. When sizing up the landscape for the fourth quarter, one thing is sure: after a wild rollercoaster 2025, which has seen declines of 20% and then gains of over 30%, one would think we are due for a pullback before the end of the year. Our 5 top October high-yield Dividend Kings picks were screened for price to earnings, dividend yield, and most importantly, those with solid forward momentum that should hold their ground well, even if we experience a 10% or bigger correction. All are rated Buy at top firms on Wall Street.
Why we recommend the Dividend Kings
Companies that have paidand raised their dividends for 50 years and longer are the kind that growth and income investors want to buy and hold in stock portfolios forever. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely hold their ground much better than volatile technology names.
Altria
Loading stock data...Altria is oneof the world’s largest producers and marketers of tobacco, cigarettes, and related products. This tobacco company offers value investors a compelling entry point, trading at 9.5 times forward earnings and yielding a substantial 620% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.
The companyprovides cigarettes primarily under the Marlboro brand.
- Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
- Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- on! Oral nicotine pouches
- e-vapor products under the NJOY ACE brand.
It sells itstobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria usedto own over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer. Last year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.
Altriaincreased its quarterly dividend earlier this year by 4.1%, from $0.98 to $1.02 per share, marking its 59th dividend increase in the past 55 years.
Bank of Americahas a Buy rating with a $72 target.
Target
Loading stock data...Target Corporationis an American retail corporation with a chain of discount department stores and hypermarkets. This company remains a solid and safe retail total return play, and after a rough first half of 2025, down almost 24%, it is a stellar buy, trading at 14 times forward earnings with a strong 4.93% dividend yield. Target Corp. (NYSE: TGT) is a general merchandise retailer in the United States. It offers apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as jewelry, accessories, and shoes. The company also offers a range of beauty and personal care products, baby gear, cleaning supplies, paper products, and pet care products.
Targetalso provides:
- Dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service
- Electronics, which includes video game hardware and software
- Toys, entertainment, sporting goods, and luggage
- Furniture, lighting, storage, kitchenware, small appliances, home décor, bed, and bath
- Home Improvement
- School/office supplies
- Greeting cards, party supplies, and other seasonal merchandise
In addition,the company sells merchandise through periodic design and creative partnerships, shop-in-shop experiences, and in-store amenities. It also sells its products through its stores and digital channels, including Target.com.
The companysuffered a “Bud Light” moment a few years back after the disastrous merchandising of LGBTQ products, which struck a nerve among many shoppers. While not as severe as the beer giants’ conundrum, it was a significant negative that has seemingly subsided.
Guggenheimhas assigned a Buy rating, accompanied by a $115 target.
PepsiCo
Loading stock data...This top consumerstaples stock reported solid second-quarter earnings and will continue to supply all the goods for football tailgates and parties. Trading at 18 times forward earnings with massive cash flow and a 3.84% dividend, this is a solid idea now. PepsiCo, Inc. (NYSE: PEP) is a worldwide food and beverage company. Activist investor Elliott Investment Management recently took a $4 billion stake in PepsiCo, revealing a strategy to unlock value within the company’s iconic brand by focusing on core strengths, such as innovation and brand marketing, rather than its capital-intensive bottling operations. This move caused PepsiCo’s stock to surge, with Elliott believing the company could see over 50% upside if its proposed strategic changes were implemented. However, these changes would involve a very long-term transformation.
Its Frito-LayNorth America segment offers:
- Lays and Ruffles potato chips
- Doritos, Tostitos, and Santitas tortilla chips
- Cheetos cheese-flavored snacks, branded dips
- Fritos corn chips
The company’sQuaker Foods North America segment provides:
- Quaker Oatmeal
- Grits
- Rice cakes
- Natural granola and oat squares
- Pearl Milling mixes and syrups
- Quaker Chewy granola bars
- Cap’n Crunch cereal
- Life cereal
- Rice-A-Roni side dishes
Pepsico’sNorth America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
- Pepsi
- Gatorade
- Mountain Dew
- Diet Pepsi
- Aquafina
- Diet Mountain Dew
- Tropicana Pure Premium
- Sierra Mist
- Mug brands
Citigrouphas a Buy rating with a $168 target price objective.
Johnson & Johnson
Loading stock data...Johnson & Johnsonis a multinational American corporation specializing in pharmaceuticals, biotechnology, and medical devices. With shares trading at 14.5 times forward earnings and paying a 2.81% dividend, this diversified healthcare giant is a strong buy at current prices. Johnson & Johnson (NYSE: JNJ) is among the most conservative of the major pharmaceutical companies with a diverse product portfolio and a familiar, solid brand. The company researches, develops, manufactures, and sells a range of healthcare products. Its primary focus is on products related to human health and well-being.
It operatesthrough two segments:
- Innovative Medicine
- MedTech
The InnovativeMedicine segment is focused on various therapeutic areas, including:
- Immunology
- Infectious diseases
- Neuroscience
- Oncology
- Pulmonary hypertension
- Cardiovascular and metabolic diseases.
Productsin this segment are distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use.
The MedTechsegment encompasses a diverse portfolio of products used in orthopedics, surgery, interventional solutions, cardiovascular intervention, and vision care. It also offers a commercially available intravascular lithotripsy (IVL) platform for the treatment of coronary artery disease (CAD) and peripheral artery disease (PAD).
Citigrouphas a Buy rating with a $185 target price objective.
Genuine Parts
Loading stock data...Investorsseeking a solid retail investment should consider purchasing this company, as its products remain in high demand and it has raised the dividend for 69 consecutive years. Trading at 16 times forward earnings and offering a 2.91% dividend, this is a conservative idea now. Genuine Parts Inc. (NYSE: GPC) is a global service provider of automotive and industrial replacement parts and value-added solutions.
The company’ssegments include:
- Automotive Parts Group
- Industrial Parts Group
The Automotivesegment distributes replacement parts (other than collision parts) for all makes and models of automobiles, trucks, and other vehicles in North America, Europe, and Australasia.
Its mainautomotive customers are repair and maintenance shops, and its main industrial customers are businesses operating distribution, manufacturing, and production equipment.
The Industrialsegment distributes a wide variety of industrial bearings, mechanical and fluid power transmission equipment, including:
- Hydraulic and pneumatic products
- Material handling components
- Related parts and supplies
Genuine Parts’industrial business offers replacement parts and solutions to customers in the maintenance, repair, and operation (MRO) sector, as well as to original equipment manufacturers (OEMs).
Truist Financialhas a Buy rating on the shares with a $137 target.
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