Best Dividend Stocks to Buy Now: Balancing Yield and Sustainability

Investing.com -- Dividend stocks remain a cornerstone for income-focused investors, but not all high-yielding options offer equal security. According to recent analysis from WarrenAI, several dividend-paying companies present varying combinations of yield and sustainability worth examining.

The rankings highlight the critical balance between attractive dividend yields and the coverage ratios that indicate whether these payouts can be maintained over time. While some stocks offer eye-catching yields, their sustainability remains questionable, while others provide more modest income with greater security.

Winnebago Industries (NYSE:WGO) tops the list with an impressive 4.4% dividend yield, but carries significant risk. The recreational vehicle manufacturer shows a concerning negative coverage ratio of -0.3x, suggesting the current dividend might not be sustainable without earnings improvement.

Investors attracted to the high yield should carefully consider this payout risk.

Winnebago Industries recently announced a 3 percent increase in its quarterly cash dividend and has restructured its executive leadership team into three main groups.

Matthews International (NASDAQ:MATW) offers a substantial 4.3% dividend yield with a thin but positive coverage ratio of 0.1x. What distinguishes Matthews is its remarkable 27-year dividend growth streak, earning it status as a dividend stalwart despite the minimal cushion.

This long-term commitment to shareholders provides some confidence despite the tight coverage.

Matthews International reported third-quarter 2025 earnings and revenue that surpassed analyst expectations.

Ashland Inc. (NYSE:ASH) presents a balanced option with a 3.4% yield and a much healthier 1.8x coverage ratio, indicating a safer payout structure. Beyond the dividend, Ashland offers growth potential with analyst target upsides of 26.5%, making it an attractive option for investors seeking both income and appreciation. Analysts maintain a "Strong Buy" consensus on the specialty chemicals company.

In recent developments, Ashland Inc . declared a quarterly cash dividend of $0.415 per share and announced that a production unit at its Kentucky facility is offline for repairs. The company also received an initiation of coverage from Morgan Stanley with an Equalweight rating.

Quaker Chemical (NYSE:KWR) rounds out the list with the lowest yield at 1.5% but boasts the strongest coverage ratio at an impressive 5.0x. This "fortress cover" suggests exceptional dividend security, even if the immediate income is less compelling. Like Ashland, Quaker Chemical offers growth potential with analyst target upsides of 21.3% and maintains a "Strong Buy" rating from analysts.

Quaker Chemical reported second-quarter 2025 earnings with an EPS that missed analyst forecasts, though its revenue exceeded expectations. Separately, Jefferies lowered its price target on the company.

The WarrenAI analysis emphasizes that only Ashland and Quaker Chemical successfully combine meaningful income with genuine payout safety, making them potentially more suitable for risk-averse income investors despite their lower yields compared to the top-ranked options.

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