Dividend Power Play: These 3 Stocks Have 3%+ Yield With Positive Returns This Year
For investors seeking protection and stability in the face of a nearly 10% decline in the S&P 500 this year – a drop triggered by President Donald Trump’s new tariffs and retaliations from key trading partners, including China – three dividend stocks warrant attention. These companies have bucked the market trend by increasing in price in 2025, while also offering a dividend yield greater than 3%, consistent annual dividend growth, and resilience to the escalating trade war. But if you want to reduce volatility while leaving ample room for upside, consider the Trefis High Quality portfolio strategy (HQ). This strategy has outperformed the market with over 75% returns since its inception, as demonstrated by its HQ performance metrics.
1. Philip Morris International (PM)
In a market characterized by uncertainty and volatility, Philip Morris stands out as a solid performer with compelling fundamentals and strategic positioning that has allowed it to navigate global economic challenges effectively.
2. American Electric Power Company (AEP)
American Electric Power (AEP) stands out as a resilient investment option offering both stability and growth potential through its regulated utility business model and strong financial fundamentals.
3. WEC Energy Group (WEC)
Similar to Philip Morris International, WEC Energy Group emerges as a compelling defensive investment option with stable fundamentals and characteristics that provide insulation from various market headwinds.
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In today’s uncertain market environment characterized by trade tensions and volatility, these three dividend stocks offer compelling combinations of current income, growth potential, and defensive characteristics. Philip Morris International provides global diversification and superior margins, while American Electric Power and WEC Energy Group offer the stability of regulated utilities with impressive dividend growth rates.
For investors seeking to balance defensive positioning with attractive returns, these companies represent strategic options that have demonstrated resilience during market turbulence. Their combination of sustainable dividends, operational efficiency, and relative insulation from trade conflicts makes them worthy of consideration for portfolios focused on stability without sacrificing income or growth potential. Similarly, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
Returns | Apr 2025 MTD [1] |
2025 YTD [1] |
2017-25 Total [2] |
PM Return | -5% | 27% | 151% |
WEC Return | -5% | 11% | 131% |
AEP Return | -7% | 11% | 116% |
S&P 500 Return | -10% | -14% | 126% |
Trefis Reinforced Value Portfolio | -9% | -18% | 492% |
[1] Returns as of 4/8/2025
[2] Cumulative total returns since the end of 2016
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