Investing

5 High-Yield Dividend Stocks Passive Income Investors Love

Lee Jackson

Published: February 13, 2024 8:51 am

Investors love dividend stocks because they provide dependable income and give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation.

At 247 Wall St., we always like to remind our readers about the impact total return has on portfolios because it is one of the best ways to help improve the chances for overall investing success. Again, total return is the combined increase in a stock’s value plus dividends.

Passive income is a steady stream of unearned income that doesn’t require active traditional work. Shared ideas for earning passive income include investments, real estate, or side hustles.

We screened our 24/7 Wall St. High Yield dividend stocks universe for top blue-chip stocks, offering passive income investors ample cash flow and safety.

Altria

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This maker of tobacco products, offers value investors a great entry point now and pays a rich 9.77% dividend. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

The company provides cigarettes primarily under the Marlboro brand;

• Cigars and pipe tobacco principally under the Black & Mild brand
• Moist smokeless tobacco products and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches.

Altria also owns over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer, which some feel is worth more than $10 billion and a segment of the company that could be sold. Given the public relations disaster the company has gone iver the last year, it could be on the chopping board.

In June of 2023, the company purchased NJOY Holdings, which makes electronic cigarettes and vaping products, for a consideration of $2.75 billion. The company has increased its dividend for 52 consecutive years.

Enterprise Products Partners

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This company is the largest publicly traded energy partnership and a leading North American provider of midstream energy services to producers and consumers. Enterprise Products Partners L.P. (NYSE: EPD) provides various midstream energy services, including:

• Gathering, processing, transporting, and storing natural gas, natural gas liquids (NGL) fractionation,
• Import and export terminalling, and
• Offshore production platform services

The company has four reportable business segments:

• Natural Gas Pipelines and Services
• NGL Pipelines and Services
• Petrochemical Services
• Crude Oil Pipelines and Services

One of the reasons many analysts may like the stock might be its distribution coverage ratio. The company’s distribution coverage ratio is well above 1x, making it relatively less risky in the MLP sector.

Enterprise investors are paid a strong 7.65% distribution, which has been increased for the last 24 years

Pfizer

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This top pharmaceutical stock was a huge winner in the Covid-19 vaccine sweepstakes but has been crushed as many are not getting boosters. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide and pays a rich 6.10.% dividend, which has risen every year for the last 14 years

The company offers medicines and vaccines in various therapeutic areas, including:

• Cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands
• Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
• Sterile injectable and anti-infective medicines, and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands.

Pfizer also provides drugs and vaccines in various therapeutic areas, such as:

• Pneumococcal disease, meningococcal disease,
• Tick-borne encephalitis
• COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
• Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands and
• Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands

Simon Property Group

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This leading company has exploded off the 2023 lows, pays a fat 5.31% dividend and looks ready to break out. Simon Property Group Inc. (NYSE: SPG) invests in the real estate markets across the globe. The company engages in investment, ownership, management, and development of properties.

Simon Property Group primarily invests in:

• Regional malls
• Premium outlets
• Mills
• Community/lifestyle centers

Through its subsidiary partnership, it owns or has an interest in about 230 properties in the US and Asia. The company also has a 28.9% interest in Klepierre, a European REIT with over 260 shopping centers in 13 countries.

Verizon Communications

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This top telecommunications company offers tremendous value at current levels and pays a stellar 6.70% dividend. Verizon Communications, Inc (NYSE: VZ) is one of the largest US telecom companies. It provides wireless and wireline service to retail, enterprise and wholesale customers.

The company’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.

Verizon also provides:

• Converged communications
• Information
• Entertainment services over America’s most advanced fiber-optic network
• Integrated business solutions to customers worldwide.