The Top 7 Dividend Stocks With Yields Over 4%

Since October 2024, the Federal Reserve has lowered benchmark interest rates four times. Typically, when the Fed reduces rates, the yields on savings options like high-yield savings accounts also decrease.

Currently, many high-yield savings accounts offer Annual Percentage Yields (APYs) under 4%, barely keeping up with inflation. However, exceptions can be found on BW’s list of the best high-yield savings accounts.

In such a scenario, savers may consider fixed-rate savings options like Certificates of Deposit (CDs) and bonds. These vehicles allow savers to secure a yield until maturity. BW provides information on some of the highest-yielding CDs and a guide on how to purchase bonds.

For those willing to take on more risk and invest for the long term, investing in dividend-paying stocks could be an alternative. Dividend stocks pay out portions of company profits directly to shareholders.

Many dividend stocks still offer yields higher than 4%, and their yields are not as closely linked to the Fed’s benchmark interest rates as savings account yields. However, there are significant differences between dividend stocks and savings accounts, such as the potential for investment losses. Here’s what you need to know.

We have compiled a list of S&P 500 dividend stocks with yields exceeding 4%, positive one-year returns, and payout ratios below 100%.

The rankings are presented below, starting from the highest dividend yield to the lowest.

Source: Finviz. Data accurate as of market close on November 4, 2025, and is provided for informational purposes only.

There are significant distinctions between dividend stocks and savings accounts. Dividend stocks are considered investments, requiring a brokerage account for purchase. The returns from a dividend stock encompass not only its dividend yield but also potential stock price fluctuations. Unlike savings accounts, dividend stocks entail higher risk and are intended for a longer investment horizon, with the possibility of higher long-term returns.

A stock’s dividend yield is calculated as its dividend payments per share over the past twelve months divided by its current market price. As stock prices fluctuate daily, so do dividend yields, making them more volatile compared to high-yield savings accounts, which adjust their yields more gradually over time.

However, dividend stock yields are not directly influenced by benchmark interest rates, unlike savings account yields. Various factors, mostly unrelated to the Fed, impact dividend yields, including stock price shifts and company decisions to alter dividend payments. Consequently, dividend stocks’ yields may not decrease in tandem with Fed rate cuts, unlike savings account yields, which are likely to decline.

Moreover, dividend income typically receives more favorable tax treatment compared to savings account interest. While savings account interest is usually subject to ordinary income tax rates, dividend income often qualifies for lower qualified dividend tax rates.