Dividend stocks are boring. High-yield dividend stocks are risky.
You may have heard both of these statements before. However, while they can sometimes be true, that's not always the case – especially the first one.
Many dividend stocks were anything but boring this year. Several of them even offered exceptional dividend yields. Here are the three best-performing high-yield dividend stocks of 2025 (as of the market close on Dec. 24).
Image source: Getty Images.
The top three
Before I present the top three, I'll explain the methodology used to narrow down the candidates.
First, I screened for stocks that pay dividends with yields of at least 2.12%. Why that number? It's exactly twice the current dividend yield of the SPDR S&P 500 ETF (SPY +0.81%).
Second, I excluded any stocks with market caps below $300 million. The premise behind this move is that many investors are apprehensive (and often justifiably so) about buying the stocks of tiny companies.
After applying these criteria, one stock stood head and shoulders above all others. Aura Minerals (AUGO +2.04%) (its former stock ticker was ARMZ.F) has delivered a gain of 334%. The copper and gold mining company offers a dividend yield of 2.8%, well above the threshold to qualify as a high-yield investment.
NASDAQ: ARMZ.F
Key Data Points
AngloGold Ashanti (AU +2.63%) came in second. This global mining company is headquartered in South Africa. Its shares are up 290% this year. Like Aura Minerals, AngloGold Ashanti's dividend yield stands at roughly 2.4%.
NYSE: AU
Key Data Points
The No. 3 high-yield dividend stock for 2025 is Banco Santander (SAN +0.59%). This Spanish financial services stock soared 160% in 2025. Its dividend yield is nearly 2.2%, just above the 2.12% required to meet the definition used for a high-yield investment.
NYSE: SAN
Key Data Points
Why these dividend stocks have skyrocketed this year
You might have noticed that two of the three big high-yield winners of 2025 are mining stocks. That's not a coincidence.
Both Aura Minerals' and AngloGold Ashanti's share prices have skyrocketed this year, primarily due to gold prices also soaring to record highs. Gold prices are up for several reasons, notably including significant economic and geopolitical uncertainty.
Gold Price in US Dollars data by YCharts
Additionally, other alternative assets, often viewed by investors as safe havens, have faced headwinds. For example, the value of the U.S. dollar has declined compared to other currencies, while bond markets have been highly volatile. These factors have led many investors to view gold as a more attractive investment.
Banco Santander's fortunes haven't been closely tied to gold prices. Instead, the financial services company has delivered for investors the old-fashioned way, by growing its earnings robustly. Banco Santander has generated record profits for six consecutive quarters.
Higher interest rates have also helped European banks. So have improved balance sheets. Banco Santander has also benefited from the overall strong performance of European stocks.
Are they good picks for 2026?
The most critical question for Aura Minerals and AngloGold Ashanti is: What will happen with gold prices in 2026? If the current momentum continues, gold stocks are likely to enjoy another strong year. If not, the share prices of Aura Minerals and AngloGold Ashanti could decline.
My best guess is that gold prices will remain near historically high levels. I doubt that the uncertainty that has contributed to the significant gold price increases this year will magically disappear in 2026.
However, I expect the frenzy over gold will moderate at least somewhat in the new year. As a result, my view is that Aura Minerals and AngloGold Ashanti stocks will likely deliver more modest gains in 2026 compared to their sizzling performances this year.
What about Banco Santander? I'd be surprised if the bank stock skyrockets by a triple-digit percentage again in 2026. The fundamentals for the company appear to be in good shape, though. And with a forward price-to-earnings ratio of around 10.7, Banco Santander isn't valued at a worrisome premium.
My prediction for this stock is similar to what I foresee for Aura Minerals and AngloGold Ashanti. I expect Banco Santander's share price to continue rising next year, albeit at a slower pace than it has in 2025.
Are these three top high-yield dividend stocks of 2025 good picks for 2026? I don't think they're bad choices. However, I believe that other stocks offer more attractive risk-reward propositions.
