雅虎香港財經 7 High-Yield Dividend Stocks That Work While You Sleep
Although seemingly most of the celebrated ideas on financial publications center on high-growth plays, investors should spare some thought toward high-yield dividend stocks. In particular, I’m referring to stable or relevant enterprises that offer considerable passive income.
No, you shouldn’t abandon your growth game. However, these ideas are likely working on commission. They’re great when things are going well but what happens when the rain falls? You need some reassurances that you’re going to get paid to pay the bills. That’s effectively what high-yield dividend stocks do. With that, below are some compelling examples to consider.
BHP (BHP)
Source: T. Schneider / Shutterstock
Based in Australia, BHP (NYSE:BHP) falls under the materials industry; specifically, it deals with industrial metals and mining. As a resource player, BHP primarily operates through tis copper, iron ore and coal extraction businesses. It also engages in the mining of silver, zinc, molybdenum, uranium and gold. All these commodities are relevant for industrial or energy purposes, making BHP a great play for high-yield dividend stocks.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Indeed, BHP offers a forward dividend yield of 4.84%. That’s well above the materials sector’s average yield of 2.82%. Further, the payout ratio is reasonable at 55.6%. That said, a drawback for BHP is that the company only pays its dividends semiannually. Also, it doesn’t presently enjoy a lengthy track record of annual payout increases.
Over the trailing 12 months (TTM), BHP posted a net income of $7.39 billion on sales of $55.34 billion. Earnings on a per-share basis come out to $2.91. For this fiscal year, analysts anticipate sales to rise 3.67% to $55.79 billion. Further, the most optimistic target calls for $60.8 billion, providing BHP with some growth flair in addition to its status as one of the high-yield dividend stocks.
Philip Morris (PM)
Source: Vytautas Kielaitis / Shutterstock
Headquartered in Stamford, Connecticut, Philip Morris (NYSE:PM) operates as a tobacco firm. Of course, mentioning this fact likely generates at least some controversy. Further, with global smoking precedence declining, Philip Morris appears to have a relevancy problem. Still, plenty of people smoke. Moreover, the company’s portfolio includes a range of products such as heat-not-burn devices and vaporizers. These “digital” products have soared in popularity.
Turning to the passive income, the tobacco giant offers a forward yield of 5.13%. That’s a country mile above the consumer staple sector’s average yield of 1.89%. Now, it must be stated that the payout ratio is a bit elevated at 75.32%. However, the company also enjoys a track record of 16 years of consecutive payout increases. It won’t want to give up on this trend.
Financially, over the TTM period, net income landed at $7.97 billion on sales of $35.95 billion. Earnings on a per share basis reached $5.12. For this year, experts anticipate earnings per share of $6.49 on sales of $38.04 billion. Surprisingly, if you’re politically agnostic, PM ranks among the top high-yield dividend stocks to buy.
Simon Property Group (SPG)
Source: Jonathan Weiss / Shutterstock.com
Structured as a real estate investment trust (REIT), Simon Property Group (NYSE:SPG) isn’t the easiest idea to discuss. The Indianapolis, Indiana-based enterprise owns premiere shopping, dining, entertainment and mixed-use destinations. However, that’s also the problem. News articles have inundated headlines with the finality of the shopping mall. And let’s face it – when was the last time you’ve been to one of those things?
Still, SPG – if you’re willing to absorb some risk – could be one of the intriguing high-yield dividend stocks to buy. First, let’s talk about the yield, which stands at a whopping 5.29%. That’s above the average for REITs, which is quite elevated already at 4.46%. You must note that the payout ratio is 125.63%. However, it’s not uncommon for REITs to run hotter-than-usual ratios.
The second and critical factor for SPG stock is consumer sentiment. After many months of declines, the U.S. consumer confidence index unexpectedly improved last month. At the very least, this dynamic suggests a K-shaped economic recovery, where the well off do better and everyone else suffers. SPG may be a bit cynical in that regard. Still, it deserves consideration for high-yield dividend stocks.
Pfizer (PFE)
Source: photobyphm / Shutterstock.com
Hailing from New York City, Pfizer (NYSE:PFE) operates in the drug manufacturing sector. Fundamentally, Pfizer saw its brand recognition skyrocket due to the Covid-19 crisis. Offering one of the first vaccines available, the company had a hand in returning society back to normal. However, with the fear of the SARS-CoV-2 virus plunging, PFE stock also fell into the dumps.
Still, it might be worth keeping on your radar. For one thing, it’s legitimately one of the high-yield dividend stocks. At the moment, the company provides a forward yield of 5.86%. That’s considerably elevated compared to the healthcare sector’s average yield of 1.58%. Also, the company benefits from 15 years of consecutive payout increases, thus providing confidence and credibility.
Looking out to the future, Pfizer can potentially leverage its acumen forged in manufacturing its Covid vaccine into other initiatives. It’s a risky endeavor but it could pan out. For 2024, analysts are targeting EPS of $2.38 on sales of $61.22 billion. Last year, the company posted EPS of only 37 cents on sales of $58.5 billion.
Realty Income (O)
Source: Shutterstock
Based in San Diego, California, Realty Income (NYSE:O) bills itself as “The Monthly Dividend Company.” It’s also an S&P 500 enterprise and a member of the S&P 500 Dividend Aristocrats index. Primarily, the company invests in retail-related properties. Its tenants include big-name stores covering sectors such as retail pharmacy and home improvement.
What people love about Realty is the passive income. Right now, the REIT offers a forward yield of 5.94%. Again, that’s a sizable step above the underlying sector average of 4.46%. Moreover, the company is sitting on 32 years of consecutive payout increases. That’s a status it will not want to give up. As a result, investors are willing to forgive the sky-high payout ratio.
During the TTM period, Realty posted net income of $776.99 million on sales of $4.4 billion. Earnings on a per-share basis landed at $1.08. For 2024, experts believe that EPS could hit $1.46, an increase of 15.6%. As well, revenue could soar to $5.14 billion, an improvement of nearly 26%. With both growth and income on the table, Realty ranks among the top high-yield dividend stocks to consider.
Verizon (VZ)
Source: RAMAN SHAUNIA / Shutterstock.com
Another enterprise hailing from the Big Apple, Verizon (NYSE:VZ) falls under the communications services industry. It’s one of the biggest telecom firms. As well, it helps deliver information and entertainment products and services to consumers, businesses and governmental entities worldwide. It operates in two segments, one catering toward individual consumers and the other toward enterprises.
Over the years, VZ stock hasn’t exactly been an encouraging asset to hold. Recently, though, it’s attempting to stage a comeback. What could help matters is the passive income. Currently, Verizon offers a forward yield of 6.46%. That’s a huge leap from the communication sector’s average yield of 2.82%. Also, the company commands 19 years of consecutive dividend increases.
Over the TTM period, net income clocked in at $11.31 billion on sales of $134.04 billion. Earnings on a per-share basis hit $2.67. By year’s end, analysts project that EPS could rise nearly 72% to $4.73. Further, sales could move up 3.3% to land at $138.41 billion. Through 2027, experts anticipate steady expansion of the top and bottom lines. Thus, VZ ranks among the top high-yield dividend stocks to buy.
Innovative Industrial Properties (IIPR)
Source: Shutterstock
Perhaps the most controversial idea on this list of high-yield dividend stocks, Innovative Industrial Properties (NYSE:IIPR) is arguably the most exciting. Based in Park City, Utah, Innovative Industrial – which is structured as a REIT – focuses on the acquisition, ownership and management of specialized properties that are leased to experienced, state-licensed cannabis operators.
To be clear, Innovative isn’t a cannabis player directly. Instead, it provides administrative support for “botanical” enterprises. Still, it’s a compelling play on personal liberties and the rising acceptance of marijuana. To be sure, the much-maligned plant arouses strong feelings. However, with the Biden administration moving to reclassify cannabis to a lower level of enforcement, federal legalization may not be far away.
Presumably, that would be a positive for IIPR stock. In the meantime, investors can start speculating on Innovative right now, especially for its robust yield of 6.75%. That’s sky high, even for a REIT.
For 2024, experts see a dip in EPS to $5.42 from last year’s $5.77. However, this bottom-line metric could improve to $5.97 by 2025. Therefore, patience might pay off.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
More From InvestorPlace
The #1 AI Investment Might Be This Company You’ve Never Heard Of
Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
Legendary Investor Predicts: “Forget A.I. THIS Technology Is the Future”
The post 7 High-Yield Dividend Stocks That Work While You Sleep appeared first on InvestorPlace.
