10 of Wall Street’s favorite dividend stocks for 2025 with yields of at least 4%
Current Interest Rates and Investment Options: Short-term interest rates allow for yields over 4% on savings accounts, while dividend-paying stocks may also be suitable based on individual investment goals.
Benefits of Dividend Stocks: Investors in dividend-paying companies can expect increasing payouts over time, which, along with rising profits, can contribute to higher stock prices in the long run.
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- Dividend Yield Expectation: Upbound Group Inc currently has an annualized dividend yield of 7.9%, and the sustainability of this yield needs to be assessed in conjunction with the company's profitability fluctuations, which could impact investor return expectations.
- Historical Volatility Analysis: The historical volatility for Upbound Group Inc, calculated from the last 251 trading days, stands at 52%, indicating significant price fluctuations and necessitating careful risk-reward assessments by investors.
- Options Trading Dynamics: As of Wednesday afternoon, the put volume among S&P 500 components reached 917,392 contracts, while call volume hit 2.14M contracts, indicating a market preference for call options, which may reflect investor optimism regarding future price increases.
- Options Market Trends: The current put-to-call ratio of 0.43 is significantly lower than the long-term median of 0.65, suggesting that investors are more inclined to purchase call options in trading, potentially signaling a positive shift in market sentiment.
- Dividend Yield Highlight: Upbound currently offers an 8.2% dividend yield, which it is expected to cover, indicating the company's stability and attractiveness in the rental market.
- Successful Business Transformation: By acquiring Acima and Brigit, Upbound has successfully transformed into an enterprise software specialist, with Acima providing lease management services to over 11,000 retailers, enhancing the company's competitive edge.
- Revenue Growth Trend: Upbound's revenue has grown in the high single digits over the past two years, with a projected 7% increase this year, demonstrating resilience and profitability amid economic fluctuations.
- Risks and Opportunities: Despite facing high debt and economic slowdown risks, Upbound's stock has fallen 35% over the past year, yet its healthy dividend and potential business turnaround opportunities make it a focal point for investors.
- Rebranding and Acquisitions: Upbound, formerly known as Rent-A-Center, rebranded in early 2023 and acquired two tech companies, Acima and Brigit, with Acima serving over 11,000 retailers in lease management and Brigit helping 12 million users improve their credit, enhancing its market competitiveness.
- Strong Financial Performance: Upbound's revenue has grown in the high single digits over the past two years, with a projected 7% increase this year, and its profitability is sufficient to cover its 8.2% dividend, demonstrating resilience amid economic fluctuations.
- Risks and Challenges: While Upbound's dividend appears sustainable, it faces significant risks from high debt and potential economic slowdowns, particularly if unemployment rises, increasing the likelihood of customer defaults that could impact future financial stability.
- Market Outlook and Investment Opportunity: Despite a 35% decline in Upbound's stock price over the past year, its transformation potential and diversified business portfolio present a rebound opportunity, with expectations for revenue and profitability growth leading to a potential stock price recovery by 2026.
- Market Underperformance: On Wednesday, shares of music and electronics stores collectively fell by approximately 1.5%, indicating challenges within the sector that may impact investor confidence and lead to capital outflows.
- Upbound Group Leads Decline: Upbound Group's stock dropped by about 4%, becoming the primary drag on the sector, highlighting potential operational pressures and intensified market competition risks.
- Vertiv Holdings Follows Suit: Vertiv Holdings saw a decline of approximately 1.8%, exacerbating concerns about the industry's future performance and potentially affecting its short-term financing capabilities.
- Overall Industry Trend: The downward trend in music and electronics stores may signal a slowdown in consumer spending, prompting businesses to reassess market strategies to navigate potential economic downturns.

Dividend Investment Strategy: Dividend investors focus on identifying strong, profitable companies that are attractively valued, utilizing a proprietary DividendRank formula to generate a list of promising stocks for further research.
Upbound Group Inc Dividend Details: Upbound Group Inc pays an annualized dividend of $1.56 per share, distributed quarterly, with the most recent ex-dividend date on December 17, 2025, highlighting the importance of analyzing a company's dividend history for future predictions.
Interest Rate Cuts: The Federal Reserve has resumed cutting short-term interest rates, making a 4% dividend yield for stocks more appealing compared to bank or money-market fund yields.
Dividend Stock Selection: Investors can choose dividend stocks based on various criteria, such as higher yields or focusing on quality and value, as demonstrated by John Buckingham's recent list of 17 dividend-stock value picks shared with MarketWatch.










