4 of the Highest-Yielding Dividend Kings Are Crushing the S&P 500

Investors love dividend stocks, especially high-yield varieties, because they offer a significant income stream and have substantial 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. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.

While the recent rally that brought stocks out of bear market territory has been a big relief to investors, we could be in for a long summer, and the balance of 2025 could be just as volatile as what we have seen through the first four months of the year. The battle over the U.S. tariffs could stay front and center, and inflation could begin to spike as the tariffs kick in. With the S&P 500 still down 4% even after the huge rally, we decided to screen the Dividend Kings, looking for the highest-yielding stocks that are outperforming the venerable index.

The Dividend Kings are the 54 companies that have raised their dividends for 50 years or more, 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. When we screened the list, looking for the highest-yielding stocks beating the S&P 500 this year, we found four that still offer investors an outstanding entry point.

Why do we cover the Dividend Kings?

Companies that have raised their dividends for shareholders for 50 years or longer are the kind of investments that passive income investors need to own. Dependability is crucial for individuals seeking to increase their annual income through dividend stock investments.

Altria

This is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products. With shares up a very strong 14% in 2025, Altria Group Inc. (NYSE: MO) offers value investors a great entry point. It manufactures and sells smokable and oral tobacco products in the United States.

The company provides cigarettes primarily under the Marlboro brand, as well as:

• 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 its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev S.A. (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.

Altria recently increased its quarterly dividend by 4.1%, from $0.98 to $1.02 per share, marking its 59th dividend increase in the past 55 years.

Universal

This somewhat off-the-radar company is another one of the world’s leading tobacco merchants. With shares up almost 8% in 2025, Universal Corp. (NYSE: UVV) has reported strong demand and has been in business for almost 150 years. It processes and supplies leaf tobacco and plant-based ingredients worldwide.

The company operates through two segments:

• Tobacco Operations
• Ingredients Operations

It procures, finances, processes, packs, stores, and ships leaf tobacco for sale to manufacturers of consumer tobacco products.

The company:

• Contracts, purchases, processes, and sells flue-cured, burley, and oriental tobaccos that are primarily used in the manufacture of cigarettes
• Dark air-cured tobaccos manufacture naturally wrapped cigars, cigarillos, and smokeless and pipe tobacco products

Universal also provides value-added services, including:

• Blending, chemical, and physical tobacco testing
• Service cutting for various manufacturers
• Manufacturing reconstituted leaf tobacco
• Just-in-time inventory management services
• Electronic nicotine delivery systems
• Customer smoke testing services

Canadian Utilities

Canadian Utilities Ltd. (OTC: CDUAF) is a Canada-based worldwide organization of companies with around $22 billion in assets and paying a 4.87% dividend. The stock is up almost 13% this year and resides in a highly safe sector, making it a steal at current trading levels. The company engages in the electricity, natural gas, renewables, pipelines, liquids, and retail energy businesses in Canada, Australia, and elsewhere.

It operates through three segments:

• ATCO Energy Systems
• ATCO EnPower
• Corporate & Other segments

The ATCO Energy Systems segment provides regulated electricity transmission and distribution services in:

• Northern and central east Alberta
• The Yukon
• The Northwest Territories
• The Lloydminster area of Saskatchewan

This segment also provides integrated natural gas transmission and distribution services in Alberta, the Lloydminster area of Saskatchewan, and Western Australia. It owns and operates approximately 9,100 kilometers of natural gas pipelines, 11 compressor sites, approximately 3,600 receipt and delivery points, and a salt cavern natural gas storage peaking facility near Fort Saskatchewan, Alberta, in Canada.

The ATCO EnPower segment provides:

• Hydro
• Solar
• Wind
• Natural gas electricity generation
• Natural gas storage
• Industrial water solutions
• Clean fuels, including hydrogen, carbon capture, and underground storage projects; and related infrastructure development in Alberta, the Yukon, the Northwest Territories, Australia, Ontario, Mexico, and Chile

The Corporate & Other segment retails electricity and natural gas and provides whole-home solutions.

Northwest Natural

This small-cap company provides natural gas service to approximately 2.0 million people in more than 140 communities. The off-the-radar utility stock suits worried conservative investors, pays a dependable dividend, and is up over 9% this year. Northwest Natural Holding Co. (NYSE: NWN), through its subsidiary, Northwest Natural Gas Company, provides regulated natural gas distribution services to residential, commercial, industrial, and transportation customers in Oregon and southwest Washington.

The company also operates:

• 5.7 billion cubic feet of the Mist gas storage facility contracted to other utilities and third-party marketers
• Offers natural gas asset management services
• Operates an appliance retail center

In addition, it engages in gas storage, water, non-regulated renewable natural gas, and other investments and activities.

The company provides natural gas service through approximately:

• 786,000 meters in Oregon and southwest Washington
• Water services to about 80,000 people through about 33,000 water and wastewater connections in the Pacific Northwest and Texas

Wall Street Loves 3 Strong Buy Dividend Stocks Spending Billions Buying Back Their Own Shares

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