With oil prices forecast by Goldman Sachs to average US$105 per barrel in December, cash flow is front of mind again for income seekers. Higher energy and living costs can make each dividend cheque feel more valuable, especially when bond yields move around and growth stories look fragile. This article walks through three higher yielding companies that combine 3%+ income with covered, steady and growing payouts.
The three stocks highlighted here offer a compelling starting point if you want exposure to higher yielding businesses with covered, growing and stable dividends. However, if you want the strongest names, these 5 dividend aristocrats stocks are at the top of the list.
United Parcel Service (UPS)
Overview:United Parcel Service provides global small package delivery and logistics services, moving parcels and freight for businesses and consumers across air, ground and ocean networks.
Operations:UPS generates about US$60.7b from U.S. Domestic Package, US$19.6b from International Package and US$11.1b from Supply Chain Solutions.
Market Cap:US$92.1b
For income investors scanning Dividend Powerhouses, United Parcel Service matters because its U.S. Domestic Package operations generate the steady cash that helps fund a sizable payout, while the wider logistics network works to support that income story.
"United Parcel Service is moving further away from low-yield Amazon volumes after completing the Amazon glide down that removed about 2 million low-quality pieces per day and reduced related expenses by about US$4.5b, which directly supports higher net margins and operating profit."
The real test for UPS's dividend strength now hinges on how one unseen cost pressure shapes future margins and cash generation.
That hidden pressure is exactly what the full narrative for United Parcel Service breaks down, showing how it could reshape UPS's payout capacity, capital spend and long term cash story.
La-Z-Boy (LZB)
Overview:La-Z-Boy designs, manufactures and sells upholstered and wood furniture through its own La-Z-Boy stores, Joybird and independent retailers. This gives the Retail segment a direct link to the Dividend Powerhouses theme.
Operations:La-Z-Boy generates about US$1.5b from Wholesale and US$972 million from Retail, with most revenue coming from U.S. customers.
Market Cap:US$1.2b
La-Z-Boy matters for income seekers because its growing company-owned store network and omnichannel reach aim to turn everyday sofa and recliner purchases into repeat, visible cash flow that can support a covered, 3%+ dividend over time.
"Expansion of La-Z-Boy company-owned retail stores, with management now targeting about 450 locations and continuing to add roughly 10 new mostly company-owned stores each year, continues to shift sales toward a higher-margin direct channel that can support revenue growth and retail operating margins."
The real dividend test sits in how one still-evolving profit drag resolves, which could sharply influence La-Z-Boy's future margin headroom.
How that drag plays out is exactly what the full narrative for La-Z-Boy unpacks, separating temporary friction from longer term opportunity as La-Z-Boy's mix and margins keep shifting.
Bank OZK (OZK)
Overview:Bank OZK is a regional US bank that uses deposit taking and lending to generate interest and fee income supporting regular dividends.
Operations:Bank OZK generates about US$1.5b of revenue from Community Banking activities in the United States, reflecting its core banking focus.
Market Cap:US$5.5b
Bank OZK matters for the Dividend Powerhouses screen because its recurring interest and fee income fund a meaningful cash payout that has been raised frequently while management reshapes the loan book toward more diversified, relationship driven banking.
"The accelerated buildout of the Corporate and Institutional Banking platform, which now spans more than seven lending verticals and over 42 industry niches and is expected to reach a portfolio size similar to RESG by 2027, is set to increase floating rate lending spreads and fee income from roles as administrative agent or joint lead on single lender and small club deals. Management's multi year plan to shrink RESG balances, bring construction and development exposure below regulatory concentration guidelines by late 2026 or early 2027, and shift the loan book toward a more diversified mix is expected to reduce capital tied to higher risk commercial real estate and create room for additional CIB and commercial lending growth."
What really decides how durable that dividend stream feels is how one emerging earnings pressure ultimately feeds through to future payout flexibility.
That emerging pressure is exactly what the full narrative for Bank OZK lays out, showing how Bank OZK's evolving mix could turn today's earnings drag into accelerating dividend flexibility and fresh lending upside.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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