Top 3 Dividend Achievers for October: High Yields, Growth Ahead

Key Points

• High-yield United Parcel Services sell-off is overextended, and a catalyst for higher prices is ahead.
• Verizon is well-positioned for the long-term application of AI.
• Pfizer is positioning itself for entrance into the GLP-1 market, sustaining its outlook for capital return growth.

Dividend achievers are stocks that have a record of dividend distribution increases and an outlook for continued growth.

These stocks are attractive investments due to their proven models, stable cash flow, and ability to sustain capital returns, which may also lead to share price increases and capital gains.

This examination focuses on three such stocks and explores why they are attractive buys in October. 

United Parcel Service Is Set Up to Rebound Strongly in Q4

United Parcel Service’s NYSE: UPS stock price sell-off is grounded in post-COVID market normalization, but it moved to new lows in 2025 due to an uncertain outlook. The company withdrew its full-year guidance due to the anticipated impact of tariffs, setting the market up for a strong rebound, as economic data and results from FedEx indicate that the effect has been less than anticipated. The likely outcome is that the reduced outlook for FQ3 underestimates the business, and the results will outperform by a wide margin, providing a catalyst for market rebound. Even so, the consensus for this year and next is sufficient to sustain the capital return outlook. 

United Parcel Service’s dividend is substantial, yielding nearly 8% with shares at a multiyear low. The payout is a high 85% of the 2025 earnings outlook, but the strong balance sheet and expectation for growth to resume in 2026 offset it. The more critical factor is that, as an S&P 500 company, this Dividend Achiever is also well-positioned to become a Dividend Aristocrat, which can catalyze higher share prices. Inclusion in the index could occur by 2035, an event that will drive increased institutional buying due to index benchmarking. 

Analysts and institutions are supportive of this market. The analysts' trends include price target reductions and downgrades; however, the net result is a Hold rating and a consensus forecast of 30% upside. Likewise, the institutions trimmed positions in late 2024 but reverted to buying in 2025 as the price action hit multiyear lows, suggesting the market is at or near its bottom. 

High-Yield Verizon Is Well-Positioned for the AI Boom 

AI spending is currently focused on infrastructure and model development, but is gradually shifting towards applications. The application of AI is good news for mobile carriers, thanks to 5G and the IoT, which unlock the doors to increased mobile demand. The combination means that consumer and IoT applications will flourish, and both rely on Internet connections that Verizon NYSE: VZ will provide.

The takeaway is that long-term revenue growth is all but assured, and wider margins are also anticipated. The company has been working diligently to improve operational quality, and this effort is evident in the results. 

Verizon’s dividend is also substantial, yielding about 6.25% at the end of September. The payout is reliably safe, at approximately 57% of the earnings outlook, and is backed by a healthy balance sheet. This is why analysts and institutional investors are increasing their support.

MarketBeat’s data reveals that analysts' coverage is rising in 2025, sentiment is firming, and price targets are increasing. The consensus forecasts a 10% upside, while the high-end adds 15% to it. 

Pfizer: Acquisitions Boost Outlook

The primary factor driving Pfizer’s NYSE: PFE stock price in 2025 is its lack of a GLP inhibitor. However, the company’s recent acquisition of Metsera changes that, setting it up with a candidate that could come to market as soon as 2028-2029.

As it stands, the 7.25% dividend yield is safe in 2025, accounting for roughly 50% of the earnings outlook, and is expected to grow. The company has increased its dividend payment for 14 consecutive years, positioning it for inclusion in the Dividend Aristocrat Index by 2036. 

Analysts' sentiment weighed on PFE’s stock price early in 2025, but the story changed in Q3. The data from Q3 shows an improvement in sentiment, driven by numerous upgrades and price target increases.

The takeaway is that analysts rate PFE as a Hold, the number of Buy ratings is increasing, and there is potential for an 18% increase at the consensus price target, which is echoed in the institutional data. The institutional data reveal they reverted to buying in Q3, suggesting a market reversal is imminent.