4 World-Famous Companies Pay Huge 10%+ Ultra-High-Yield Dividends and Nobody Knows
Many U.S. growth and income investors fail to look overseas for dividend ideas. European stocks have underperformed and offer outstanding bargains. The S&P 500 is overbought and expensive at a stunning 27.9 times earnings. Investors looking for international exposure may…
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Key Points
- Many U.S. growth and income investors fail to look overseas for dividend ideas.
- European stocks have underperformed and offer outstanding bargains.
- The S&P 500 is overbought and expensive at a stunning 27.9 times earnings.
- Investors looking for international exposure may want to find a financial advisor. Click here to learn how you can.
It was nice while it lasted, and while it may still have some seasonal strength left, the two-year AI-driven stock market rally may be ready to run out of gas fast. While the Magnificent 7 (the big tech companies that have driven most of the gains over the past two years) continues to surge, the rest of the S&P 500 has underperformed and trades at a multiple that looks dangerously high.
While Treasury yields have backed up and look somewhat tempting, they don’t offer the total return potential that dividend-paying stocks do. Investors concerned about the staggering U.S. debt and the potential for a government shutdown once again next year are becoming genuine issues for the domestic stock market, and investors may want to look across the pond and to the Great White North.
We decided to screen our 24/7 Wall St. foreign dividend stock research database looking for well-known companies that may be off-the-radar for U.S. investors. We found four companies, most of which are incredibly well-known and, in some cases, dominate their respective sectors. They all share one common trait: They pay huge and reliable dividends.
Why do we cover ultra-high-yield stocks?
While not suited for everybody, those who are trying to build strong passive income streams can do extremely well having some of these top companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can use a barbell approach to get passive income streams that can make a significant difference.
BCE
With a huge 10.31% dividend and a product that never goes out of style, this Canadian telecom giant looks cheap at current trading levels. BCE Inc. (NYSE: BCE | BCE Price Prediction) is a communications company that provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through two segments.
The Bell Communication and Technology Services segment provides:
- Wireless products and services, including mobile data and voice plans and devices
- Wireline products and services comprising data, including internet access, internet protocol television, cloud-based services, and business solutions, as well as voice, and other communication services and products
- Satellite TV and connectivity services for residential, small and medium-sized business, government, and large enterprise customers.
This segment also buys and sells local telephone, long-distance, and data and other services from or to resellers and other carriers and operates consumer electronics retail stores.
The Bell Media segment provides conventional TV, specialty TV, pay TV, streaming, digital media, radio broadcasting, and out-of-home advertising services.
Mercedes-Benz
The German luxury car giant pays investors a massive 10.19% dividend. Mercedes-Benz Group AG (MBGAF) is an automotive company in Germany and internationally that combines luxury with performance across its full line of models, including luxury sedans, SUVs, coupes, roadsters, convertibles, and more.
It operates through three segments:
- Mercedes-Benz Cars
- Mercedes-Benz Vans
- Mercedes-Benz Mobility
The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, and G-Class brands, as well as related spare parts and accessories.
It also provides:
- Financing
- Leasing
- Car subscription and rental
- Fleet management
- Insurance Brokerage
- Mobility services
- Digital services for charging and payment
The company, formerly known as Daimler AG, changed its name to Mercedes-Benz Group AG in February 2022. Founded in 1886, Mercedes-Benz Group AG has its headquarters in Stuttgart, Germany.
Vodafone
This company pays investors a huge 10.38% dividend and is in a sector that always has demand. Vodafone Group PLC (NASDAQ: VOD) provides telecommunication services in Europe and internationally.
It offers mobile connectivity services comprising:
- End-to-end services for mobile voice and data, messaging, device management, BYOx, and telecoms management
- Professional and consulting services
- Fixed line connectivity, such as fixed voice and data, broadband, software-defined networks, managed WAN, LAN, Ethernet, and satellite; and financial services, as well as business and merchant services.
The company also provides:
- Consumer Internet of Things (IoT) propositions, as well as security and insurance products
- Mobile services
- Logistics, fleet management, and intelligent metering services
- WiFi: digital services comprising mobile application development
- Multi-access edge computing,
- Worker insights, AI assistant, drone detection, visual inspection, and mixed reality
- Vodafone Analytics platform and traditional IT hosting services, including colocation, managed hosting, security, hosting infrastructure, and flexible computing for the government.
In addition, it offers integrated business communication services, fixed mobile convergence services, carrier services, and IoT devices comprising managed tablets and integrated terminals.
Further, it offers M-Pesa, an African mobile money platform that allows payments and provides financial services; Vodafone Business’ multi-cloud platform; and productivity solutions. It also operates digital cloud-based television platforms.
Volkswagen
Trading at a ridiculously cheap 4.4 times estimated 2024 earnings, this European automobile legend could be a massive home run while paying a huge 10.98% dividend. Volkswagen AG (VWAPY) manufactures and sells automobiles around the world.
Volkswagen manufactures and sells automobiles in:
- Germany
- Europe
- North America
- South America
- Asia-Pacific
- Internationally
The company operates through four segments:
- Passenger Cars and Light Commercial Vehicles
- Commercial Vehicles
- Power Engineering
- Financial Services
The Passenger Cars and Light Commercial Vehicles segment develops vehicles, engines, and vehicle software; produces and sells passenger cars and light commercial vehicles and related parts; and offers motorcycles.
The Commercial Vehicles segment develops, produces, and sells trucks and buses and offers parts and related services.
The Power Engineering segment offers large-bore diesel engines, turbomachinery, and propulsion components.
The Financial Services segment provides dealership and customer financing, leasing, direct banking and insurance, fleet management, and mobility services.
The company sells vehicles under these brands:
- Volkswagen Passenger Cars
- Koda
- SEAT/CUPRA
- Volkswagen Commercial Vehicles
- Audi
- Lamborghini
- Bentley
- Ducati
- Porsche
- Scania
- MAN
- Volkswagen Truck & Bus
- Navistar commercial vehicles
- Bugatti brands
Five Stocks Trading Near $5 That Pay Ultra-High-Yield Dividends
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Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
