Our Top High-Yield Dividend Picks for August Have Huge Growth Potential

Investors love dividend stocks, especially those with high yields, because they provide a substantial income stream and offer significant 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. At 24/7 Wall St., we consistently emphasize the potential of total return, as it is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return refers to the collective increase in a stock’s value, including dividends.

24/7 Wall St. Key Points:

• After a 30% run of the lows in April many stocks are overbought

• Stocks with solid growth potential and reliable dividends are total return champions

• The tepid jobs report for July could insure a September rate cut

• Are high-yield dividend stocks with growth potential a good fit for your portfolio? Why not find a qualified financial advisor near you for a complete asset review. Click here to get started finding one. 

There are over 12,000 publicly traded stocks in the United States. Not even the most intelligent investors with the best tools can find them all immediately. Many investors and traders typically maintain a small list of key stocks they follow when seeking capital gains or high-yield dividends. We decided to screen our 24/7 Wall St. high-yield database, looking for solid companies with reliable dividend coverage. Four well-run companies hit our screens and are our top growth and income picks for August. All are rated Buy at top Wall Street firms that we cover.

Why do we cover growth and income dividend stocks?

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Chevron

This American multinational energy corporation specializes in oil and gas. The integrated giant is a safer option for investors looking to position themselves in the energy sector, and it pays a rich 4.5% dividend. Chevron Corp. (NYSE: CVX) operates integrated energy and chemicals businesses worldwide through its subsidiaries.

Chevron’s integrated oil and gas operations, strong balance sheet, and focus on capital efficiency provide resilience and growth potential. Wall Street analysts have praised the company’s low-cost operations and premium asset portfolio. A 5% dividend increase was announced back in February 2025. Growth is supported by strategic acquisitions and stable cash flows, even in volatile energy markets.

The company operates in two segments. The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas

• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas

• Transportation of crude oil through pipelines

• Transportation, storage, and marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products

• Marketing crude oil, refined products, and lubricants

• Manufacturing and marketing renewable fuels

• Transporting crude oil and advanced products by pipeline, marine vessel, motor equipment, and rail car

• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

Chevron announced in the fall of 2023 that it had entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion, and the issues with Exxon have been settled. The deal is likely to close by the end of summer.

Goldman Sachs

Goldman Sachs Group Inc. (NYSE: GS) is an American multinational investment bank and financial services company. The white-glove banking giant offers industry-leading strength and a 2.25% dividend. Goldman Sachs is a financial institution that provides various financial services for corporations, financial institutions, governments, and individuals worldwide.

Goldman Sachs benefits from a leading position in investment banking and asset management. Analysts at Bank of America highlight its undervaluation and cyclical tailwinds from rebounding investment banking activity. Expected earnings growth exceeds 8%, driven by long-term opportunities in asset management.

It operates through these segments:

• Global Banking & Markets

• Asset & Wealth Management

• Platform Solutions

The Global Banking & Markets segment provides financial advisory services, including:

• Strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs

• Relationship lending, acquisition financing, and secured lending through structured credit and asset-backed lending and funding under securities-to-resale agreements

This segment also offers client execution activities for cash and derivative instruments, credit and interest rate products, provision of mortgages, currencies, commodities, and equities-related products, as well as underwriting services.

The Asset & Wealth Management segment manages assets across various classes, including equity, fixed income, hedge funds, credit funds, private equity, real estate, currencies, and commodities.

It provides:

• Customized investment advisory solutions

• Wealth advisory services

• Personalized financial planning

• Private banking services

• Investments in corporate equity, credit, real estate, and infrastructure assets

The Platform Solutions segment offers credit cards and point-of-sale financing for the purchase of goods or services. It also provides cash management services, such as deposit-taking and payment solutions, for corporate and institutional clients.

The Bank of America stock price target is a stunning $782. Goldman Sachs is also on the firm’s U.S. 1 list of top stock picks.

PepsiCo

This top consumer staples stock reported surprisingly solid second-quarter earnings and will continue to supply all the goods for summer tailgates, parties, and picnics. PepsiCo Inc. (NYSE: PEP) is a worldwide food and beverage company with a dependable 4.09% dividend.

PepsiCo’s strong brand portfolio and global distribution network provide the company with a wide moat. Wall Street analysts forecast mid-single-digit dividend growth and 8%+ EPS growth, driven by innovation in snacks and beverages and expansion in emerging markets. Despite near-term challenges like rising supply-chain costs, PepsiCo’s competitive positioning remains strong.

Its Frito-Lay North America segment offers:

• Lays and Ruffles potato chips

• Doritos, Tostitos, and Santitas tortilla chips

• Cheetos cheese-flavored snacks, branded dips

• Fritos corn chips

The company’s Quaker Foods North America segment provides:

• Quaker Oatmeal

• Grits

• Rice cakes

• Natural granola and oat squares

• Pearl Milling mixes and syrups

• Quaker Chewy granola bars

• Cap’n Crunch cereal

• Life cereal

• Rice-A-Roni side dishes

PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:

• Pepsi

• Gatorade

• Mountain Dew

• Diet Pepsi

• Aquafina

• Diet Mountain Dew

• Tropicana Pure Premium

• Sierra Mist

• Mug

Realty Income

Realty Income Corp. (NYSE: O) is a real estate investment trust that invests in free-standing, single-tenant commercial properties. This is an ideal stock for growth and income investors looking for a safer contrarian idea for the rest of 2025. Realty Income is an S&P 500 company that provides stockholders with dependable monthly income. With a high 5.85% yield and 30+ years of consecutive dividend increases, the company’s growth potential comes from e-commerce-resistant properties and acquisitions like Spirit Realty Capital in 2024.

The company acquires and manages freestanding commercial properties that generate rental revenue under long-term net lease agreements with its commercial clients.

It is engaged in a single business activity: leasing property to clients, generally on a net basis. This business activity spans various geographic boundaries and encompasses a range of property types and clients across multiple industries.

The company owns or holds interests in approximately 15,621 properties in:

• All 50 United States

• The United Kingdom

• France

• Germany

• Ireland

• Italy

• Portugal

• Spain

With clients doing business in 89 industries, its property types include retail, industrial, gaming, and others, such as agriculture and office.

Its primary industry concentrations include:

• Grocery stores

• Convenience stores

• Dollar stores

• Drug stores

• Home improvement stores

• Restaurants

• Quick service

Five Stocks Paying 7% and Higher Dividends That Nobody Ever Talks About

 

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