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Stubborn Inflation Still Hurting Baby Boomers: 5 High-Yield Dividend Stocks Will Help
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24/7 Wall St. Insights
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.
A study from Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past half-century (1973-2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
While the recent inflation data is undoubtedly far better than the 9.1% increase that was printed in the summer of 2022, the reality for many Americans, and especially baby boomer seniors, is that many prices for everyday must-have items like food, energy, and other day-to-day needs remain very elevated.
Worried investors concerned over the sticky inflation need to look to high-yield dividend shares in the energy, health care, and consumer goods sectors for companies that will continue to outperform in an ongoing, albeit lower, inflation environment. We screened our 24/7 Wall St. inflation stock database and found five stocks that pay big, dependable, high-yield dividends that can continue to deliver regardless of price increases. All are rated Buy at top Wall Street firms we cover.
Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
This tobacco company offers value investors a great entry point and a rich 8.08% 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, as well as:
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev N.V. (NYSE: BUD), the world’s largest brewer. The company sold 35 million of its 197 million shares through a global secondary offering earlier this year. That represents 18% of their holdings but still leaves a hefty 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan partially funded by the sale.
This consumer packaged food giant is a very safe idea that pays a stellar 4.77% dividend. Conagra Brands Inc. (NYSE: CAG) and its subsidiaries operate primarily in the United States as a consumer packaged goods company.
The company operates through four segments:
The Grocery & Snacks segment primarily offers shelf-stable food products through various retail channels.
The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels.
The International segment offers food products in various temperature states through retail and food service channels outside the United States.
The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other food service establishments.
The company sells its products under these well-known brands:
This company is one of the largest publicly traded energy partnerships and pays a 7.20% dividend. Enterprise Products Partners L.P. (NYSE: EPD) provides various midstream energy services, including:
The company has four reportable business segments:
Many Wall Street analysts like the stock because of its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky in the MLP sector.
This top consumer staples stock posted earnings for the third quarter that were in line with expectations. It will continue to supply all the goods for the 2024 NFL football season tailgates and parties, and it pays a solid 3.26% dividend. PepsiCo Inc. (NYSE: PEP) is a worldwide food and beverage company.
Its Frito-Lay North America segment offers:
The company’s Quaker Foods North America segment provides:
PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes but has been beaten down over the last few years as many are not getting boosters. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide and pays a hefty 5.90% dividend, which has risen yearly for the last 14 years.
The company offers medicines and vaccines in various therapeutic areas, including:
Pfizer also provides medicines and vaccines in various therapeutic areas, such as:
Trading not far from its lowest split-adjusted level in 13 years, the stock is an incredible bargain at current levels and pays a massive dividend.
The pharmaceutical giant reported third-quarter 2024 Revenues of $17.7 billion, representing 32% year-over-year operational growth. Earlier this year, the company raised full-year 2024 revenue guidance to $59.5 to $62.5 billion and lifted adjusted diluted EPS guidance to $2.45 to $2.65. Patient investors will receive one of the highest blue-chip dividends, and shares trade at a reasonable 9.88 times estimated 2025 earnings.
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