Investing $11,400 in high-yield stocks like Pfizer, PennantPark Floating Rate Capital, and Ares Capital can generate $1,000 in annual dividend income by 2025. These stocks offer an average yield of 8.8%, providing a passive income stream without the responsibilities of rental properties. Pfizer, despite challenges like declining COVID-19 sales and upcoming patent expirations, continues to grow its revenue and has a strong pipeline of new drugs. PennantPark, a business development company, benefits from high yields on its debt investments to mid-sized businesses.
With recent interest rate cuts, high-yield dividend stocks like OneMain Holdings, Altria, and Telus are attractive for investors seeking steady passive income. OneMain Holdings offers a 7.3% yield and is expanding its lending services. Altria, a Dividend Aristocrat, provides a 7.1% yield and is diversifying into smoke-free products. Telus, with a 7.3% yield, is growing in telecom and emerging industries. These stocks offer reliable dividends and growth potential.
Wall Street analysts predict significant growth for four high-yield dividend stocks in 2024, despite their recent poor performance. Sasol Ltd, with a 9.2% yield, could potentially double in price, while Vodafone Group, yielding 10.9%, may see a 61% increase. Crescent Point Energy, with a 4.3% yield, has a 59% upside potential, and Icahn Enterprises LP, despite cutting its dividend and experiencing a 65% stock price drop, has a projected 45% increase. These stocks offer attractive dividends and are expected to soar in the coming year, but investors are advised to consider all options as there may be better opportunities available.
The article discusses investing $125,000 across four high-yield dividend stocks—Rithm Capital, Altria, Verizon Communications, and AT&T—to potentially generate $10,000 in passive income in 2024. Rithm Capital offers a 9.7% yield, Altria 9.5%, Verizon 6.8%, and AT&T 6.4%. Each company presents unique opportunities and challenges, such as Rithm's position in a high-interest rate environment, Altria's diversification into smokeless tobacco and vaping, Verizon's robust free cash flow despite a competitive market, and AT&T's revenue growth and debt reduction despite a recent dividend cut. The article suggests that these stocks could be undervalued and provide a steady income stream for investors.
As 2024 begins, three ultra-high-yield dividend stocks are highlighted as strong buys due to their impressive yields and solid business foundations. AT&T, with a 6.61% yield, is benefiting from the 5G revolution and has significantly reduced its net debt. PennantPark Floating Rate Capital, offering a 10.17% yield, is a business development company that has thrived due to its variable rate debt portfolio, which benefits from rising interest rates. Altria Group, with a 9.72% yield, continues to exhibit strong pricing power with its dominant Marlboro brand and is making strategic moves towards a smokeless future with investments in e-vapor and cannabis. These stocks present attractive opportunities for income investors seeking substantial dividends with a level of risk mitigation.
The article recommends three high-yield dividend stocks for 2024: Kohl's, with a 7% yield and a turnaround story in progress; Stellantis, offering a 6.4% yield and success in the EV market in Europe; and Verizon, with a 7% yield and a record of increasing dividends for 17 consecutive years. While Kohl's is working on a sales and earnings improvement and a partnership with Sephora, Stellantis has surpassed Tesla as Europe's No. 2 EV seller. Verizon has recovered from early subscriber losses in 2023 and is showing growth in its broadband business. Despite these recommendations, The Motley Fool's Stock Advisor service suggests other stocks that could potentially yield better returns.
