Key Points
- Among U.S. large-cap stocks, these three names offer the highest dividend yields across telecom, aerospace, and autos.
- All three hold yields above 5%, with two not far off from 7%.
- Special dividends also play a role in the capital allocation policies of two of these stocks, creating an additional factor that is important for investors need to consider.
As stock prices change, so do dividend yields—typically in opposite directions. The dividend yield calculation is as follows:
Annual Dividend Per Share (DPS) ÷ Share Price
If a company’s annual DPS remains constant while its share price declines, its yield increases. However, this only applies to new investors. Once a stock is purchased, the investor’s yield is effectively locked in at the share price paid, unless the company adjusts its dividend.
Overall, share price movements mean that the companies that offer the highest yield for new investors also shift. Below, we’ll detail three large-cap U.S. stocks in three key industries that are currently offering the highest dividend yields to new investors as of Dec. 5 close.
VZ: Telecom’s Top Dog in Dividend Yield
Verizon Communications (NYSE: VZ) is one of the United States’ top players in the telecommunications industry, offering services from wireless coverage to broadband solutions. Currently, Verizon’s indicated dividend yield of 6.6% is the highest among all U.S. large-cap telecom stocks. The indicated dividend yield annualizes a company’s latest quarterly DPS to calculate an expected yield over the next year.
Verizon’s indicated yield stands tall against its two biggest competitors, AT&T (NYSE: T) and T-Mobile US (NASDAQ: TMUS). Their indicated yields are 4.4% and 2%, respectively.
Notably, Verizon typically increases its dividend every September. It did so this year, increasing its quarterly payout by 2% to 69 cents per share. The company is likely to announce a similar dividend increase in September 2026. This could make the firm’s actual yield over the next 12 months slightly higher than its indicated yield today.
TDG: Special Dividend Payer With Yield Approaching 7%
Next up is Transdigm Group (NYSE: TDG), an aerospace and defense company valued at nearly $76 billion. Transdigm is a supplier of aircraft components, with massive customers like Boeing (NYSE: BA) and Airbus (OTCMKTS: EADSF). Based on its last dividend, Transdigm’s indicated yield is a whopping 6.7%. That is by far the highest of any U.S. large-cap stock in its industry. Lockheed Martin (NYSE: LMT) is a distant second at 3%.
However, one factor to consider regarding Transdigm’s dividend is that it only pays a special dividend. It did so in September, with a $90 per share payout. Since 2022, Transdigm has paid a special dividend every year. This dividend has also increased substantially, with the firm paying a special dividend of just $18.50 in 2022.
While the company’s dividend growth is strong, the use of a special dividend also introduces more uncertainty. Companies that pay special dividends often shift their payouts based on the health of their business. Thus, Transdigm’s annual DPS is more likely to fall than a company that utilizes regular quarterly dividends if its business enters a downturn.
F: The Auto Industry’s Highest Yield
Last up is the highest-yielding U.S. stock in the automotive industry, Ford Motor (NYSE: F). The company’s indicated yield stands at approximately 5.8%. The only other U.S. large-cap automotive stock that pays a dividend is General Motors (NYSE: GM). Its yield of 0.8% doesn’t hold a candle to Ford.
Despite this high yield, Ford shares have gained over 30% in 2025, a rare combination of capital appreciation and income. At the beginning of the year, Ford’s yield stood at over 8%. This demonstrates how rising share prices put downward pressure on yields for new investors. Investors who bought Ford in January would not only enjoy its share price appreciation but would also still hold a dividend yield near that 8% level. This shows the powerful effect that buying a high-yield stock at depressed prices can create.
Investors should note that Ford pays both a regular dividend and a special dividend. Thus, the concerns related to Transdigm also apply to Ford, albeit to a lesser extent.
Watch the Fundamentals of High-Yield Stocks
While Verizon, Transdigm, and Ford offer compelling dividend yields, investors should exercise caution. High yields can be a sign of market pessimism, often reflecting declining stock prices due to business challenges.
Before investing, always analyze a company’s fundamentals, including cash flow, debt levels, and dividend history. A high yield is valuable only if it’s sustainable—and not a precursor to a cut.
These three stocks may offer above-average income opportunities, but due diligence remains key to preserving and growing long-term returns.
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About Leo Miller
Experience
Leo Miller has been a contributing writer for DividendStocks.com since 2024.
- Professional Background: Leo Miller is a financial writer with a background in investment research and market analysis. He has held roles as an investment research associate at Laird Norton Wetherby and as a research analyst at Sungarden Investment Publishing, where he gained hands-on experience evaluating equities and portfolio strategies.
- Credentials: He holds a Bachelor of Business Administration in Finance from the University of Washington’s Foster School of Business, a top-ranked public business school. He has passed the CFA Level II exam.
- Finance Experience: Leo began researching and investing in gold mining stocks in 2019 and started writing about finance and investing in 2021. He joined DividendStocks.com as a contributing writer in 2024, where he covers both stocks and ETFs. A strong research foundation and direct exposure to financial markets shape his perspectives.
- Writing Focus: He specializes in tech stocks, dividend-paying companies, ETFs, and value-oriented opportunities. His work emphasizes clarity, actionable insights, and education for investors at all levels.
- Investment Approach: Leo follows a disciplined, long-term investing strategy rooted in fundamental analysis, with a strong focus on economics, sector and industry research, and passive investing principles.
- Inspiration: Leo finds the stock market endlessly compelling and enjoys the challenge of separating meaningful data from noise. He’s passionate about analyzing what makes businesses stand out—and sharing those insights to guide informed investment decisions. As he puts it, “Performing strong analysis requires separating the wheat from the chaff.”
- Fun Fact: Leo credits his grandfather for sparking his interest in investing and is a lifelong animal lover.
- Areas of Expertise: Fundamental analysis, economics, industry and sector analysis
Education
Bachelor in Business Administration, Finance, Foster School of Business at University of Washington
