The ongoing tariff-driven trade war has fueled fears of a recession and led to a broad selloff in equities.
In times of rising volatility, investors often look for safer and more stable assets to protect their capital, such as gold and precious metals, bonds, and dividend stocks. Here are two dividend stocks with intriguing yields that investors may want to consider.
Aside from their attractive yields, both companies have consistently increased their dividends, highlighting their commitment to returning value to shareholders while solidifying their position as reliable dividend stocks.
Dividend Stock #1: Verizon Communications
Dividend Yield: 6.2%
Valued at $183.7 billion, Verizon Communications (VZ) is one of the world’s most prominent telecommunications companies, known for its extensive wireless network, dependable broadband services, and robust market presence. Verizon has long been a favorite among investors seeking stability, dividend income, and an appealing dividend yield.
VZ stock has gained nearly 10% year-to-date, compared to the S&P 500 Index’s ($SPX) dip of 4.7%.
One of Verizon’s most compelling selling points is its 6.2% forward dividend yield, which is significantly higher than the communication sector average of 2.6%. Additionally, its forward payout ratio, which measures the amount of earnings paid as dividends, is low at 55.8%. This means the company can continue to pay dividends while still having enough cash to reinvest in the business. It also implies that there is potential for dividend growth. More importantly, Verizon is on track to become a Dividend Aristocrat, which are companies that have paid and increased their dividends for at least the past 25 years. Verizon has raised its dividends for 20 years in a row.
Verizon’s strategy has focused on maintaining high service quality, expanding its 5G infrastructure, and optimizing pricing to maintain profitability. The company has made significant investments to expand its 5G network, focusing on both urban and rural areas. In 2024, the company reported total operating revenue of $134.8 billion, a modest 0.60% increase over the previous year. Adjusted earnings per share stood at $4.59, compared to $4.71 in 2023.
Verizon consistently generates strong cash flow, allowing it to maintain dividends, pay down debt, and invest in network upgrades. In 2024, it generated $19.8 billion in free cash flow. In 2025, the company expects to generate free cash flow of $17.5 billion to $18.5 billion.
Overall on Wall Street, Verizon stock is rated a “Moderate Buy.” Out of the 25 analysts who cover Verizon stock, seven rate it a “Strong Buy,” two suggest it’s a “Moderate Buy,” and 16 rate it a "Hold.” Its average price target of $46.45 suggests that the stock can increase by 6.2% over current levels. However, its high target price of $55 implies upside potential of 25.7% over the next 12 months.
Dividend Stock #2: Enterprise Product Partners
Dividend Yield: 6.3%
With a market cap of $73.4 billion, Enterprise Products Partners (EPD) is one of the largest and most established midstream energy companies in the U.S. It is known for its extensive pipeline network. It transports, processes, and stores crude oil, natural gas, and petrochemicals. EPD has been an intriguing choice for income-seeking investors in the energy sector due to its high dividend yield.
EPD shares have gained 8.2% year-to-date, compared to the broader market loss.
The company has a vast network of pipelines, storage facilities, processing plants, and export terminals. What distinguishes EPD from competitors is its diverse asset base and fee-based revenue model, which reduces the risk of exposure to commodity price fluctuations. This allows for a consistent increase in distributable cash flow (DCF), allowing the company to pay and increase dividends. In 2024, DCF of $7.8 billion increased by 4.9% year on year. Net income for the year increased by 6.7% to $2.69 per share. Prior to reporting the full-year results, EPD announced a 3.9% quarterly dividend increase to $0.535 per share.
The company has a history of strong free cash flow generation, which has enabled it to maintain and grow its distributions despite difficult market conditions. In 2024, the company generated an adjusted free cash flow of $3.17 billion.
Enterprise Products offers an appealing forward dividend yield of 6.3%, which is higher than the energy sector average of 4.2%. Furthermore, its forward payout ratio of 69.4%, which while slightly high, appears to be sustainable for the time being as cash flows remain consistent. EPD is also a Dividend Aristocrat, having increased dividends for the past 27 years.
Overall, Wall Street rates EPD stock a “Moderate Buy.” Out of the 15 analysts who cover EPD, nine recommend a “Strong Buy,” one rates it a “Moderate Buy,” and five recommend a “Hold.” The average analyst price target of $36.93 represents a potential 8.8% increase from current levels. Its high target price of $40 suggests the stock could climb by another 17.9% over the next 12 months.
