2025 proved to be a spectacular year for global stock markets. Unfortunately, this made things more challenging for investors seeking a large passive income from dividend-paying stocks.
The MSCI All Country World Index — which tracks large- and mid-cap shares in developed and emerging markets — has delivered its best year since before the Covid-19 pandemic. As a consequence, dividend yields have toppled across the globe.
Yields fall when share prices rise, meaning share pickers receive lower income on their investment. But this doesn’t make it impossible to find quality high-yield shares. Indeed, stock markets remain packed with brilliant bargains, and not just in terms of future dividends.
Realty Income, Aberdeen Asian Income Fund and Verizon Communications (NYSE:VZ.) are just three top stocks deserving consideration right now. Want to know what I think makes them so great?
Realty check
Realty Income’s a US-listed real estate investment trust (REIT). As such, it offers dividend visibility that few other shares can. Under sector rules, these trusts must pay at least 90% of annual rental earnings out to shareholders.
This doesn’t necessarily mean companies like this are watertight income stocks. Dividends remain linked to profits, which can dive when occupancy levels drop and/or rent collection issues spring up.
But Realty Income’s huge portfolio of 15,000-plus properties helps spread this risk. Its diversified approach has delivered regular annual dividend growth since the mid-1990s.
Today, the REIT’s forward dividend yield’s a huge 5.9%. And its forward price-to-earnings growth (PEG) ratio’s 0.9, illustrating excellent value.
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Looking to Asia
The Aberdeen Asian Income Fund is a cheap and easy way to harness the dividend potential of emerging market shares. An investment here provides one with instant exposure to 57 different dividend-paying stocks.
Okay, Asian shares can be more volatile than those in the UK and US. But it can also lead to enormous long-term returns as rapid economic growth drives company profits.
Aberdeen Asian Income’s proved an excellent dividend share down the years. Annual payouts have risen for 22 years on the spin. For 2026, its dividend yield is a tasty 7.1%. Right now, the trust also trades at a 7% discount to its net asset value (NAV) per share.
A top US stock
Verizon is in many ways one of the best US dividend shares. It’s not perfect, as high infrastructure spending and competitive pressures can impact earnings and by shareholder payouts. But there’s also a lot to like here.
Telecoms remains one of the most defensive industries out there, and especially in our increasingly digital age. This gives the company recurring subscription revenues and stable cash flows it can use to fund large and reliable dividends.
Verizon’s also raised annual dividends every year for almost two decades. Predictions of a further rise in 2026 means its shares yield an enormous 6.9%.
With the company undergoing significant restructuring under new CEO Dan Schulman, it could deliver increasingly tantalising dividends and strong capital gains looking ahead. Today, its shares trade on a low forward price-to-earnings (P/E) ratio of 8.4 times.
