The average dividend yield in the S&P 500 Index remains low at 1.1%. As a result, income investors largely have to settle for less dividend income when buying stocks.

However, there are still quality companies with high dividend yields well above the market average.

Investors do not have to sacrifice income when it comes to quality dividend payers with competitive advantages and long-term growth potential.

These 3 stocks have leadership positions in their industries, dividend yields above 4% and secure dividend payouts. These qualities make them among the best high dividend stocks.

ONEOK (OKE)

ONEOK is an energy company that engages in the gathering and processing of natural gas, as well as a natural gas liquids business and natural gas pipelines (interstate and intrastate). ONEOK also owns storage facilities for natural gas.

ONEOK reported its third quarter earnings results on October 28.

The company reported that it generated revenues of $8.63 billion during the quarter, which was 72% more than the revenues that ONEOK generated during the previous year’s quarter.

The revenue movement compared to the prior year’s quarter was influenced by commodity price movements to a large degree.

ONEOK’s adjusted EBITDA was up 37% compared to the previous year’s period, rising to $2.12 billion. ONEOK earned $1.49 per share during the third quarter, but that number is lower than the company’s cash flows due to depreciation charges.

The company is forecasted to see its earnings-per-share rebound this year.

The fee-based nature of ONEOK’s revenues and non-cyclical demand for natural gas, e.g. for heating, is what has made ONEOK somewhat recession-resilient in the past.

ONEOK’s revenues, especially after the roll-up of its MLP, are fee-based or hedged, which makes the company less sensitive to commodity price swings.

Therefore, ONEOK can operate with considerable leverage without being in dangerous territory, as its cash flows are not overly volatile.

OKE stock yields 5.8%.

Thompkins Financial (TMP)

Tompkins Financial is a regional financial-services holding company that can trace its roots back more than 180 years.

It has total assets of about $8 billion, which produce almost $300 million in annual revenue.

The company offers a wide range of services, including checking and deposit accounts, time deposits, loans, credit cards, insurance services, and wealth management to its customers in New York and Pennsylvania.

Tompkins posted third quarter earnings on October 24th, 2025, and results were better than expected on both the top and bottom lines. Earnings-per-share came to $1.65, which was 14 cents ahead of estimates.

Revenue was up 14% year on-year to $87.4 million, beating estimates by $2.74 million. Net interest margin was 3.20%, up 12 basis points from the second quarter, and up 41 basis points from the year-ago period.

Total loans were $115 million higher, or 1.9%, compared to Q2. Total loans were up $407 million, or 6.9%, year over-year. Total deposits were up $337 million, or 5%, from Q2.

Deposits rose $475 million, or 7.2%, year-over-year. Total average cost of funds was 1.83%, flat to Q2, but 18 basis points better than last year’s Q3.

Tompkins boosted its dividend by 4.8% to a new payout of $2.60 annually, its 39th consecutive year of dividend increases.

The company also exhibited remarkable resilience in the Great Recession. In the worst financial crisis of the last 90 years, when most banks incurred losses or saw their earnings collapse, Tompkins Financial grew its earnings-per-share 17%, from $2.53 in 2008 to $2.96 in 2009. The defensive behavior of Tompkins Financial during economic downturns is particularly important.

PepsiCo Inc. (PEP)

PepsiCo is a global food and beverage company that generates $89 billion in annual sales. The company’s products include Pepsi, Mountain Dew, Frito-Lay chips, Gatorade, Tropicana orange juice and Quaker foods. The company has more than 20 individual $1 billion brands in its portfolio.

On February 4th, 2025, PepsiCo announced that it would increase its annualized dividend by 5.0% to $5.69 starting with the payment that was made in June 2025, extending the company’s dividend growth streak to 53 consecutive years.

On October 9th, 2025, PepsiCo reported third quarter earnings results for the period ending September 30th, 2025.

For the quarter, revenue grew 2.7% to $23.9 billion, which beat estimates by $90 million. Adjusted earnings-per-share of $2.29 compared unfavorably to $2.31 the prior year, but this was $0.03 better than expected. Organic sales grew 1.3% for the third quarter. For the period, volumes for both beverages and foods were down 1%.

PepsiCo Beverages North America’s organic revenue grew 2% for the period even as volume declined by 3%.

Revenue for PepsiCo Foods North America decreased 3%, largely due to divestitures. Food volume decreased 4%. The International Beverages segment fell 1%, primarily due to lower volume. Revenues in Europe/Middle East/Africa were up 5.5%.

PepsiCo is a relatively recession-proof company. Earnings grew during the last recession and it offers a generous dividend yield.

PepsiCo has several key competitive advantages that set it apart from the competition. The company is one of the largest in its sector, which gives it pricing power with vendors.

PEP yields 4.1%.

Disclosure: No positions in any stocks mentioned

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Bob Ciura has worked at Sure Dividend since October 2016. He oversees all content for Sure Dividend and its partner sites. Bob received a Bachelor’s degree in Finance from DePaul.