High dividend yields can be tempting, but the best income stocks don’t just pay well, they pay sustainably. Companies with payout ratios below 70% have the earnings strength to support current dividends while keeping room for future growth.
Right now, several market leaders are offering yields that beat the average, backed by solid balance sheets and disciplined capital management. These stocks can provide consistent income while preserving the flexibility to reinvest in growth or raise dividends over time.
Here are 5 high-yield dividend stocks with low payout ratios that are worth a closer look today.
| Company Name (Ticker) | Dividend Yield | Analyst Upside |
| Merck & Co. (MRK) | 3.7% | 21% |
| U.S. Bancorp (USB) | 4.5% | 15% |
| Exxon Mobil (XOM) | 3.7% | 15% |
| Enterprise Product Partners (EPD) | 7.1% | 14% |
| Philip Morris International (PM) | 3.4% | 12% |
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Merck & Co. (MRK)
Merck & Co. (MRK) is a global pharmaceutical company engaged in the research, development, manufacturing, and marketing of prescription medicines, vaccines, and biologic therapies. Its portfolio covers therapeutic areas such as oncology, infectious diseases, cardiometabolic disorders, and immunology, with blockbuster products like Keytruda driving significant revenue.
While the company faces the long-term challenge of Keytruda’s patent expiration, its combination of market-leading products, consistent earnings power, and disciplined capital allocation makes it a solid contender for long-term income and growth-focused portfolios.
What makes Merck attractive for dividend investors is its balance between rewarding shareholders today and investing for tomorrow. With its payout ratio sitting at a sustainable level, Merck has the flexibility to keep distributions healthy even through the ups and downs of the healthcare cycle. For investors seeking reliable income from a business built on durable demand, Merck checks the right boxes.
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U.S. Bancorp (USB)
U.S. Bancorp (USB) is a leading American regional bank providing a full suite of financial services including retail banking, corporate and commercial banking, payment services, and wealth management. With operations spanning multiple states, it maintains a strong footprint in both consumer and business banking.
The bank’s payout ratio remains at a level that signals both safety and room for future increases. USB’s conservative approach to capital and history of shareholder-friendly policies reinforce its position as a reliable income stock. For investors looking at the banking sector, it offers a mix of attractive yield and sustainability, backed by a proven track record.
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Exxon Mobil (XOM)
Exxon Mobil (XOM) is one of the world’s largest integrated oil and gas companies, with operations spanning exploration, production, refining, and chemical manufacturing. The company also invests in emerging energy solutions such as carbon capture, hydrogen, and lithium production.
With record-high oil-equivalent production levels in recent quarters, including record output from the Permian and Guyana regions, Exxon Mobil combines income stability with exposure to long-term energy market trends.
Today, the company benefits from disciplined capital spending and efficiency improvements that strengthen cash flow generation. Exxon’s payout ratio remains at a level that allows it to maintain shareholder distributions without stretching finances, even when oil prices fluctuate. Investors who want exposure to energy but also prioritize dividend safety will find Exxon a compelling candidate.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
