Investors looking for unusually high-yielding dividend stocks have a couple of interesting options these days. Shares of at least two well-established businesses have been beaten down by more than half from their previous peaks.
Lowered stock prices have raised the average dividend yield investors could receive from Dow Inc. (DOW 4.81%) and UnitedHealth Group (UNH 3.47%) to 5.1% at recent prices. Here's why buying them now and holding over the long run could boost your passive income stream during retirement.
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1. Dow Inc.
Responding to a years-long industry downturn, Dow Inc. lowered its quarterly dividend payout by 50% to $0.35 per share last month. As is often the case, the dividend slash upset the market.
From the closing bell on July 23 through August 11, shares of Dow Inc. lost about 31% of their value. At its beaten-down price, the stock offers a tempting 6.7% yield.
The commodity chemicals that Dow Inc. makes, such as polyethylene, are used to produce consumer goods and their packaging. Generally, a strong economy results in increased demand for its products, and vice versa. Unfortunately, interest rates that rose sharply a few years ago weakened global demand for plastic.
Interest rates aren't the only challenge Dow is facing right now. China has long been a major source of demand for polyethylene and other chemicals that Dow produces. Unfortunately for Dow, China's been ramping up its own supply in recent years.
This year, the threat of new tariffs that change day by day is causing manufacturers all over the world to dial down their activity. Considering the combination of issues affecting Dow Inc. and its peers, slashing the dividend payout was the right move.
Keeping up with its new quarterly payment shouldn't be too difficult. Reducing the payment will give Dow Inc. an extra $992 million annually to help make ends meet.
Last month, Dow announced that it would shut down three facilities in Europe to reduce expenses. In addition to lowering operating costs by shuttering facilities, Dow recently reduced its capital expenditure outlay for 2025 by $1 billion. With lowered expenses, Dow should have little trouble holding dividend payments steady until the basic materials space heats up again.
2. UnitedHealth Group
If there's one thing you can count on, it's increasing demand for healthcare. As America's largest health benefits management business, UnitedHealth Group has been a reliable dividend grower for over a decade.
UnitedHealth Group began paying a quarterly dividend in 2010, and it's been growing rapidly ever since. The company's raised its payout by 342% over the past 10 years.
Fast dividend growers generally offer ultra-low yields, but UnitedHealth Group stock is down by about 50% this year. At its beaten-down price, it offers an unusually high 3.5% yield.
In 2025, UnitedHealth Group took on heaps of new Medicare Advantage patients who visited a lot more healthcare providers than was expected. The company suspended its forward outlook in May, then issued new guidance in July.
This year, UnitedHealth Group expects to earn an adjusted $16 per share. This is heaps more than it needs to meet a dividend payment set at an annualized $8.84 per share.
UnitedHealth Group's new and existing members are racking up higher healthcare expenses than expected, but this is only a temporary problem for the benefits management business. Increasing costs from healthcare providers and increasing costs due to rising usage from members are always passed on to health plan sponsors and patients in the form of higher premiums. Adding some shares of this stock to your portfolio looks like a nearly certain way to boost your passive income stream down the road.
