In this article, I present a portfolio of 10 high-yield dividend stocks selected for May 2025 that blend strong current income, dividend growth potential, and attractive valuations. Through a rigorous four-step selection process—including financial metrics, competitive advantages, valuation, and diversification—the portfolio aims to reduce risk and enhance long-term returns.
The selected companies include VICI Properties, Chevron, Canadian Natural Resources, Pfizer, Altria, CVS Health, Toronto-Dominion Bank, Comcast, Vale, and Ares Capital. An equally weighted investment in these picks offers a Weighted Average Dividend Yield (FWD) of 6.01% and could deliver a Yield on Cost of 12.41% by 2035, assuming a 7.52% dividend growth rate.
The article also highlights the importance of combining ETFs like SCHD and SCHO with individual picks to enhance diversification and tailor the portfolio to individual needs. This hybrid approach helps investors mitigate concentration risk while benefiting from both broad exposure and focused high-conviction positions.
