3 Dividend Stocks With Yields Over 2%

Strong US GDP figures in the third quarter, helped by heavy investment in AI and steady consumer spending, have kept attention on companies that can grow earnings while rewarding shareholders with cash today. Income investors do not need 6% headline yields to play this story. A growing stream of payouts in the 2% to 5% range can be powerful. This article highlights three such dividend growers from the current screener.

The three stocks highlighted below are just a sample, since the full screen surfaced 38 more companies with similar income and growth stories that are not covered here.

If you want to identify and analyze a wider field of Type 2 dividend payers with 2% to 5% yields, go straight to the Growing Dividend Payers with 2-5% yield screener.

Amgen (AMGN)

Overview: Amgen develops and sells biologic and specialty medicines for conditions like arthritis, osteoporosis, high cholesterol, cancer and rare autoimmune diseases. It uses this broad drug portfolio to generate cash that supports its role as a growing 2% to 5% dividend payer.

Operations: Amgen generates US$38.1b from Human Therapeutics, with about US$27.2b from the United States and US$10.7b from the rest of the world.

Market Cap: US$244.3b

Amgen matters for this screener because its wide set of cash-rich biologic treatments funds a rising dividend stream, even as new therapies vie to replace aging blockbusters.

"CNPV solves regulatory speed, not the manufacturing bottleneck. Amgen lacks the massive, domestic GLP-1 supply chain infrastructure that Lilly and Novo command."

The real question for Amgen’s dividend story is what happens if one unseen pressure quietly reshapes how much cash these therapies actually throw off.

That pressure is exactly what the full narrative for Amgen unpacks in detail, highlighting where Amgen’s cash engine could quietly accelerate, decouple from peers and support future dividend growth.

Lockheed Martin (LMT)

Overview: Lockheed Martin builds advanced fighter jets, missiles, helicopters and space systems for the U.S. government and allied defense customers worldwide, using long-term programs to fund a growing 2% to 5% dividend.

Operations: Lockheed Martin generates about US$32.2b from Aeronautics, US$20.0b from Rotary and Mission Systems, US$17.3b from Missiles and Fire Control and US$13.9b from Space, with roughly US$54.9b of sales coming from the United States and additional billions from Europe and the Asia Pacific region.

Market Cap: US$145.5b

For income investors, Lockheed Martin lines up neatly with this screener because long contracts on programs like the F-35, PAC-3 and THAAD create the kind of recurring cash flows that can underpin a mid-single digit yield and consistent payout growth rather than a high but fragile headline yield.

"Lockheed Martin is moving munitions like PAC-3, THAAD, PrSM and JATM onto seven year framework agreements that aim to triple or quadruple production and allow the company to retain a larger share of cost savings from capacity investments such as robotics in Camden. This can support higher future revenue and structurally stronger net margins."

The real dividend test now is how one unresolved budget and funding cycle question feeds through to that margin story investors are banking on.

That budget overhang is exactly where the story turns, and the full narrative for Lockheed Martin shows how funding cycles, contracts and cash returns could be quietly accelerating beyond headline guidance.

Procter & Gamble (PG)

Overview: Procter & Gamble sells everyday household, personal care and health products like Tide, Pampers and Gillette to consumers worldwide.

Operations: Procter & Gamble generates about US$30.6b from Fabric & Home Care and US$20.6b from Baby, Feminine & Family Care, alongside sizeable Beauty, Health Care and Grooming lines.

Market Cap: US$366.8b

Procter & Gamble fits this growing 2% to 5% dividend theme because its Tide, Pampers and Bounty style staples generate steady, repeat cash flows that have long supported gradual payout increases, even as the wider portfolio evolves.

"Procter & Gamble operates within a very competitive environment. However, its higher operating margins and wide moat are a clear sign it still operates with competitive advantages over its competitors. It also has the capability of raising prices if needed."

The more interesting test for this dividend story is what happens if one unseen pressure quietly alters how far that pricing power can stretch.

If that pricing tension has your attention, read the full narrative for Procter & Gamble to see how Procter & Gamble’s cash engine and dividend story could be quietly accelerating.

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