Investing

5 Absolutely Best Dividend Stocks Yielding Over 5%

Lee Jackson

Published: March 27, 2024 9:45 am

Investors love dividend stocks because they provide dependable income and 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 portfolio consists of income and stock appreciation.

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

For example, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%—10% for the increase in stock price and 3% for the dividends paid.

We screened our 24/7 Wall Street dividend stock equity database, looking for the best quality stocks that pay a solid 5% or higher dividend. Five Companies hit our screens, one of which is in the healthcare sector. The sector has dramatically underperformed over the last year, and many on Wall Street feel it could explode higher as portfolio managers rotate assets to it. 

Crown Castle International

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This top cell tower company offers incredible growth and income possibilities with a fat 6.09% dividend. Crown Castle International Corp. (NYSE: CCI) is one of the largest U.S. wireless tower companies, with over 40,000 towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every primary U.S. market.

The company’s core business is leasing space on its wireless towers, primarily to wireless carriers, government agencies, and broadband data providers. This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology, and wireless service – bringing information, ideas, and innovations to the people and businesses that need them.

Crown Castle is one of the best stocks in the sector for more conservative investors. Its high yield distribution and low volatility make it a good holding for accounts seeking growth, income, and less risk.

ONEOK

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Solid natural gas pricing over the next year could help lift this top energy company, which pays a 5.03% dividend. ONEOK, Inc. (NYSE: OKE) gathers, processes, fractionates, stores, transports, and markets natural gas and natural gas liquids (NGL) in the United States.

It operates through four segments:

• Natural Gas Gathering and Processing
• Natural Gas Liquids (NGL)
• Natural Gas Pipelines
• Refined Products and Crude

The company owns natural gas gathering pipelines and processing plants in the Mid-Continent and Rocky Mountain regions; it also provides midstream services to producers of NGLs.

It also owns NGL gathering and distribution pipelines in:

• Oklahoma
• Kansas
• Texas
• New Mexico
• Montana
• North Dakota
• Wyoming
• Colorado

ONEOK also owns terminal and storage facilities in Kansas, Nebraska, Iowa, and Illinois; NGL distribution pipelines in Kansas, Nebraska, Iowa, Illinois, and Indiana; transports refined petroleum products, including unleaded gasoline and diesel; and owns and operates truck- and rail-loading, and -unloading facilities connected to NGL fractionation, storage, and pipeline assets.

In addition, the company transports and stores natural gas through regulated interstate and intrastate transmission pipelines and storage facilities.

Further, it owns and operates a parking garage in downtown Tulsa, Oklahoma, and leases excess office space and rail cars. The company also transports, stores, and distributes refined products, NGLs, and crude oil and conducts commodity-related activities, including liquids blending and marketing.

It serves integrated and independent:

• Exploration and production companies
• NGL and natural gas gathering and processing companies
• Crude oil and natural gas production companies
• Utilities
• Industrial companies
• Natural gasoline distributors
• Propane distributors
• Municipalities
• Ethanol producers
• Petrochemical, refining, and marketing companies
• Heating fuel users, refineries, and exporters

Pfizer

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This top pharmaceutical stock was a massive 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 hefty 6.17% dividend, which has risen yearly 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 medicines 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
• Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands

Philip Morris International

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This company has continued to grow its global market share and pays a fat 5.61% divided. Philip Morris International Inc. (NYSE: PM) is one of the largest international cigarette producers, with a share of 28% of the global cigarette/heated tobacco market.

Key combustible brands include:

• Marlboro
• Parliament
• L&M

The company is commercializing IQOS, a heat-not-burn product, in over 40 markets, which could drive earnings in the future. Most on Wall Street believe Philip Morris International offers superior underlying growth prospects, both near-term and long-term.

The share price has been weak lately as investors have questioned the growth potential of its reduced-risk products. All sales are outside the United States.

Verizon Communications

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This top telecommunications company offers tremendous value and pays investors a 6.73% dividend. Verizon Communications, Inc (NYSE: VZ) is one of the largest US telecom companies. It provides wireless and wireline services to retail, enterprise, and wholesale customers.

Verizon’s wireless network serves approximately 120 million mobile connections and 115 million postpaid subscribers. Due to wireless substitution and cable competition, Verizon’s wireline business has undergone a period of secular decline.

Verizon also provides converged communications, information, and entertainment services over America’s most advanced fiber-optic network and delivers integrated business solutions to customers worldwide.