3 High-Yielding Dividend Stocks That Should Pay You Forever

John Ballard, Jeremy Bowman, and Jennifer Saibil, The Motley Fool

Sat, Apr 19, 2025, 5:00 AM 6 min read

Holding shares of strong companies that pay consistent dividends can help you preserve and grow your savings. Three Motley Fool contributors recently selected their favorite high-yield dividend stocks to buy now. These businesses have a long record of paying dividends and currently offer yields well above the S&P 500 average of 1.45%. Here's why they think Target (NYSE: TGT), General Mills (NYSE: GIS), and British American Tobacco (NYSE: BTI) could pay you passive income forever.

Jennifer Saibil (Target): Target has been dealing with a tale of woes for several years already, and the new tariff program hasn't done anything positive for its stock. It's now down 48% over the past year.

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There's been a string of issues plaguing the business, including supply chain backups, too much inventory, and consumer cutbacks in spending. Unlike discount retailers Walmart and Costco Wholesale, which are focused on the grocery space, Target differentiates itself by focusing on discretionary categories like apparel and home improvement.

Under better circumstances, this is usually a benefit, and consumers would enjoy shopping for finds at Target's more than 1,800 U.S. stores. These days, it's creating pressure, since people are shopping more discriminately in the tough economy.

In fiscal 2024 (ended Feb. 1), comparable-store revenue, which adjusts for an extra week, increased 1%, and comparable earnings per share (EPS) were up 3%. Results according to generally accepted accounting principles (GAAP) were slightly down. This was at the same time that Walmart and Costco both demonstrated strong performance.

In its favor, Target is still a champion in omnichannel shopping, and digital options are driving its sales. Comparable digital sales were up 8.7% year over year in the fourth quarter, and same-day delivery orders were up 25%. These important metrics give some confidence about the retailer's ability to improve when conditions are better.

In the meantime, as the stock price goes lower, the dividend yield has soared; it's more than 5% at the current price. Plus, Target is a Dividend King, having raised its payout annually for the past 53 years.

Management is guiding for a steady 2025, with revenue expected to increase 1% and comparable-store sales to be flat, plus some increase in EPS. That guidance included uncertainty regarding tariffs when it was given, and management has not updated it since the new tariff announcements.