Investors love dividend stocks. They not only provide dependable income, but they also give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends and distributions realized over a given period. In other words, the total return on an investment or a portfolio includes both dividend income and stock appreciation.
We screened our 24/7 Wall St. research database looking for companies in the S&P 500 that were rated Buy at major Wall Street firms and also paid among the highest dividends in the venerable index. In addition, we focused on seven companies that are very timely stocks to own for the second half of 2023. They are listed below by the highest dividend yields.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Annaly Capital Management
This mortgage real estate investment trust (REIT) has been around for years and is a top income idea. Annaly Capital Management Inc. (NYSE: NLY), a diversified capital manager, engages in mortgage finance and corporate middle-market lending.
The company invests in agency mortgage-backed securities, mortgage-servicing rights, agency commercial mortgage-backed securities, non-agency residential mortgage assets, residential mortgage loans, credit risk transfer securities, corporate debts and other commercial real estate investments. It has elected to be taxed as a REIT.
Its solid first-quarter earnings and revenue results exceeded analyst expectations. Trading at a tiny 6.2 times 2023 earnings, the stock is offering aggressive investors a huge opportunity.
Shareholders receive a 12.92% dividend. Piper Sandler has a $21.50 target price on Annaly Capital Management stock. The consensus target is $21.44, and shares closed on Tuesday at $20.60.
This may be one of the best value propositions in its sector, and it was one of the first to utilize a variable dividend strategy. Devon Energy Corp. (NYSE: DVN) is an independent energy company that primarily engages in the exploration, development and production of oil, natural gas and natural gas liquids in the United States and Canada.
Devon Energy operates approximately 19,000 wells and also offers midstream energy services, including gathering, transmission, processing, fractionation and marketing to producers of natural gas, natural gas liquids (NGLs), crude oil and condensate through its natural gas pipelines, plants and treatment facilities.
Production is weighted toward crude oil while growth opportunities are liquids focused, anchored by the Delaware Basin, SCOOP/STACK, Eagle Ford Shale, Canadian Oil Sands, and the Barnett. Devon also owns equity in the publicly traded midstream MLP EnLink.
Investors receive a 9.57% dividend. The Truist Financial target price is $81, and Devon Energy stock has a $62.08 consensus target. The shares closed at $47.32 on Tuesday.
Shares of this top regional player are quite cheap at current levels for investors looking at financials. KeyCorp (NYSE: KEY) operates as the bank holding company for KeyBank National Association, which provides deposit, lending, cash management and investment services to individuals, small and medium-sized businesses.
KeyCorp also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets banner.
KeyCorp stock comes with an 8.77% dividend. Wells Fargo’s $17 price target is well above the consensus target of $13.29 and Tuesday’s close at $9.49.
This maker of tobacco products offers value investors a great entry point now as it has been hit as cigarette sales have slowed. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA enjoys a 51% share of the U.S. cigarette market, led by its top cigarette brand Marlboro.
Altria also owns over 10% of Anheuser-Busch InBev, the world’s largest brewer. The company is also rolling out its own heated and vapor products, such as Marlboro HeatSticks and IQOS, both of which are slowly being expanded across the United States. The company has increased its dividend for 51 consecutive years.
The dividend yield is 8.50%. Stifel has set its target price at $52 target. The consensus target is $49.39, and Altria stock closed on Tuesday at $44.34.
This top telecommunications stock offers tremendous value at current levels. Verizon Communications Inc. (NYSE: VZ) is one of the largest U.S. telecom companies. It provides wireless and wireline service to retail, enterprise and wholesale customers.
Verizon’s wireless network serves approximately 120 million mobile connections with 115 million postpaid subscribers. Verizon’s wireline business has undergone a period of secular decline due to wireless substitution and cable competition.
The company also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.
Verizon Communications stock investors receive a 7.35% dividend. The $49 Cowen price objective is higher than the $43.48 consensus target and Tuesday’s $36.55 closing share price.
This is one of the top energy stocks and remains a favorite across Wall Street. Kinder Morgan Inc. (NYSE: KMI) operates as an energy infrastructure company in North America.
The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipelines and underground storage systems; natural gas gathering systems and natural gas processing and treating facilities; NGLs fractionation facilities and transportation systems; and liquefied natural gas liquefaction and storage facilities.
The Products Pipelines segment owns and operates refined petroleum products and crude oil and condensate pipelines, as well as associated product terminals and petroleum pipeline transmix facilities.
The Terminals segment owns or operates liquids and bulk terminals that store and handle various commodities, including gasoline, diesel fuel, chemicals, ethanol, metals and petroleum coke. It also owns tankers.
The CO2 segment produces, transports and markets CO2 to recover and produce crude oil from mature oil fields, and it owns interests in or operates oil fields and gasoline processing plants, as well as operates a crude oil pipeline system in West Texas. It owns and operates approximately 83,000 miles of pipelines and 144 terminals.
Shareholders receive a 6.92% dividend. Kinder Morgan stock has a $22 price objective at Bernstein. That tops the $20.33 consensus target and Tuesday’s closing print of $16.80.
Shares of this leading company have been pounded and are offering the best entry point since last year, and it is a strong idea for investors looking to play the commercial real estate subsector. Simon Property Group Inc. (NYSE: SPG) invests in real estate markets across the globe, engaging in investment, ownership, management and development of properties. The company primarily invests in regional malls, premium outlets, mills and community/lifestyle centers to create its portfolio.
Through its subsidiary partnership, Simon Property owns or has an interest in about 230 properties in the United States and Asia. The company also has a 28.9% interest in Klepierre, a European real estate investment trust with over 260 shopping centers in 13 countries.
Investors receive a 6.66% distribution. The Goldman Sachs price target is $150. The consensus target is $130.43. On Tuesday, Simon Property stock closed at $113.07.
These seven top companies have incredible cash flow, their shares are trading well below their 52-week highs, and all are well positioned for the second half of this year. While maybe not as exciting as AI leaders or other technology giants, these companies have paid dependable dividends for years, so even if the price movement is slow, investors can still count on getting paid four times a year.
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Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
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