Investors are looking for solid dividend stocks with volatility returning to the markets. There are several top stocks offering yields much better than the S&P 500 average of 1.44%, but some of these businesses are struggling competitively and are only offering high yields because their share prices have collapsed.

It's ideal to find high-yield stocks of strong companies that are delivering solid financial results and showing share price appreciation potential. Here are two dividend payers that are doing just that.

1. Coca-Cola

Coca-Cola (KO 0.82%) has historically weathered recessions well. It has increased the dividend for 63 consecutive years after recently increasing its quarterly payment by 5% to $0.51. It's a great option for someone looking to boost their portfolio's average yield with relatively low risk.

Coca-Cola generates a significant portion of its annual revenue from making concentrate syrup for its trademark brand. This is a capital-light business model that churns out robust profits. The company's profit margin has remained above 20% over the last five years.

Despite choppy consumer spending behavior, global unit case volume grew 2% year-over-year in the fourth quarter and 1% for 2024. The company continues to adjust its marketing strategy and capitalize on its knowledge of local markets globally to drive sales. The company has been particularly effective at linking its beverages to different occasions, such as music or food, that resonate with consumers.

The stock has climbed 20% over the last year, and it currently offers a forward dividend yield of 2.88%. Analysts expect Coca-Cola to grow earnings at an annualized rate of 6% over the next several years. Combined with the high yield, investors can expect to earn an average annual return around 9%, which is slightly less than the historical return of the S&P 500 but with the advantage of earning a much higher dividend yield.

2. AT&T

Leading wireless service providers are very resilient in recessions. Eliminating a phone or internet payment plan is probably the last thing people are going to cut in a recession. Shares of AT&T (T 1.52%) have climbed about 59% over the last year, driven by healthy demand for wireless phone plans and high-speed internet service.

AT&T cut its dividend in 2022 to shore up funds to service its debt. The company's current quarterly dividend is $0.2775, bringing its forward yield to 4.2%. Instead of increasing its dividend, management has left the dividend unchanged as it focuses on paying down debt and investing for growth.

It's normal for telecoms to use a lot of debt, since they benefit from regular monthly bills from customers, which provides a high level of certainty for annual revenue and cash flows. The company's debt has declined from $177 billion in 2021 to $123 billion in 2024, while paying out less than half its free cash flow in dividends over the past year.

AT&T entered 2025 with momentum. It reported 1.7 million postpaid phone net additions last year, which refers to the monthly bills people pay for wireless service. The company also added 1 million AT&T Fiber net additions for the seventh consecutive year. It aims to keep pressure on competitors by focusing on delivering quality service and good deals.

The company generated more than $17 billion in free cash flow last year on $122 billion of revenue. The 4.2% forward yield, combined with management's optimism that it can grow AT&T's business to increase the share price, makes this an excellent income investment for 2025 and beyond.