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One of the big advantages of dividend growth investing is that it reduces risk and investment mistakes by focusing solely on stocks that pay rising dividends. Investing in quality stocks – and in particular dividend growth stocks – offers risk reduction based on the nature of the investment.

Buying a portfolio of quality dividend stocks leads to diversification. Diversification reduces risk mathematically; if you have only 5% of your portfolio in a stock, you can’t lose more than 5% in that stock.

The following 3 dividend stocks have yields over 3%, which is far above the average S&P 500 Index yield right now, which can help reduce portfolio risk.

AMGEN Inc. (AMGN)

Amgen is the largest independent biotech company in the world. Amgen discovers, develops, manufactures and sells medicines that treat serious illnesses. The company focuses on six therapeutic areas: cardiovascular disease, oncology, bone health, neuroscience, nephrology, and inflammation. Amgen generates about $35 billion in annual revenues.

On August 5th, 2025, Amgen announced second quarter earnings results for the period ending June 30th, 2025. Revenue grew 9.4% to $9.2 billion, which was $270 million above estimates. Adjusted earnings-per-share of $6.02 compared favorably to $4.97 in the prior year and was $0.74 ahead of expectations.

For the quarter, growth was primarily a result of a 13% increase in volume, partially offset by a 3% decline in pricing. Sales for Enbrel, which treats rheumatoid arthritis, fell 34% to $604 million. Net selling prices were down 19%, but results were also impacted by a 20% unfavorable change to estimated sales deductions.

Prolia, which treats osteoporosis, decreased 4% to a $1.1 billion due to lower net selling prices. The company did reiterate that biosimilar competition will impact second half results. Repatha, which is used to control cholesterol, grew 31% to $696 million.

Amgen stated last quarter that its Phase 2 data for its injectable weight-loss drug candidate, called MariTide, revealed that the product is the first obesity treatment with monthly or less frequent dosing to demonstrate safe and effective weight loss in a Phase 2 study.

The product is being tested in multiple Phase 3 studies currently, with some additional data due in the second half of this year. The company ended the quarter with $8.0 billion of cash and cash equivalents against debt of $56.2 billion.

Amgen updated guidance for 2025 as well. The company now expects adjusted earnings-per-share in a range of $20.20 to $21.30 for the year, up from $20.00 to $21.20 previously. At the midpoint, this would be a 4.6% improvement from the prior year.

AMGN has increased its dividend for 14 consecutive years, and currently yields 3.2%.

Bank OZK (OZK)

Bank OZK, previously Bank of the Ozarks, is a regional bank that offers services such as checking, business banking, commercial loans and mortgages to its customers in Arkansas, Florida, North Carolina, Texas, Alabama, South Carolina, New York and California.

On October 1st, 2025, Bank OZK announced a $0.45 quarterly dividend, representing a 2.3% raise over the last quarter’s payment and a 9.8% raise year-over-year. This marks the company’s 61st consecutive quarter of raising its dividend.

In mid-October, Bank OZK reported (10/16/25) results for the third quarter of 2025. Total loans and deposits grew 10% and 1%, respectively, over the end of last year. Net interest income grew 6% over the prior year’s quarter thanks to lower deposit costs. Provisions for credit losses increased 4%.

Earnings-per-share grew 3%, from $1.55 to a new all-time high of $1.59, but missed the analysts’ consensus by $0.10. Bank OZK has exceeded the analysts’ consensus in 19 of the last 22 quarters. The bank has posted record earnings-per-share in 11 of the last 12 quarters. Moreover, management remains confident in achieving all-time high net interest income in 2025.

OZK has increased its dividend for 31 consecutive years, and currently yields 4.0%.

Archer Daniels Midland (ADM)

Archer-Daniels-Midland is the largest publicly traded farmland product company in the United States. Its businesses include processing cereal grains, oilseeds, and agricultural storage and transportation.

Archer-Daniels-Midland reported its first-quarter results for Fiscal Year (FY)2025 on May 6th, 2025. The company reported second-quarter 2025 earnings that fell sharply from last year but still beat profit expectations. Revenue declined 4.9% year-over-year to $21.17 billion, missing consensus estimates, while net earnings dropped 55% to $219 million.

Reported EPS was $0.45, down from $0.98 in the prior-year quarter, though adjusted EPS of $0.93 beat expectations despite falling 10% year-over-year. Segment operating profit declined 10% to $830 million, reflecting weakness in Ag Services & Oilseeds and Carbohydrate Solutions, partly offset by modest growth in Nutrition.

Performance varied across ADM’s business lines. Ag Services & Oilseeds profit fell 17% to $379 million, with crushing operations hit hardest due to weaker vegetable oil demand tied to biofuel and trade policy uncertainty. Carbohydrate Solutions declined 6% to $337 million, as higher corn costs pressured international starch and sweetener margins.

ADM is a Dividend King, having raised its dividend for 50 years in a row. ADM stock currently yields 3.7%.

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