These high-yield dividend stocks are sure to pay off.
There are two schools of thought when it comes to dividend investing. The first one focuses on targeting stocks with higher-than-average records of dividend growth. These are companies that may not pay a high dividend but have a track record of consistently increasing payouts year over year. The second one focuses on high-yielding stocks. These are companies that currently pay a high dividend per share. To estimate a stock’s yield, divide the dollar value of its annual dividend by the current price per share. For example, a company that paid $5 in dividends last year and has a current share price of $100 will yield 5%. This is subject to change, as the yield is based on previous dividends and will be influenced by changes in share price. Still, investors can use dividend yields to screen for companies that provide good income potential. Here is a list of 10 high-yield dividend stocks.
Enbridge Inc. (ticker: ENB)
ENB is one of the largest oil and gas companies in Canada and the U.S. As a dual-listed stock on both U.S. and Canadian stock exchanges, ENB trades in Canadian and U.S. dollars. The company operates in the following segments: liquid pipelines, gas distribution and storage, gas transmission and midstream, renewable power generation, and energy services. After falling during the March 2020 COVID-19 crash, the company has staged a strong comeback to outperform in 2021 and 2022 thanks to soaring commodity prices.
Dividend yield (trailing 12 months, or TTM): 5.9%
BCE Inc. (BCE)
BCE is another dual-listed stock on both U.S. and Canadian exchanges. Formerly known as Bell, the company provides wireless, wireline and media services to customers across Canada. In Canada, the telecommunications sector is highly oligopolistic, with just three major companies dominating the market. As a result, BCE has enjoyed steady growth over the decades as it expanded its business offerings and acquired smaller competitors. In particular, BCE has a long streak of consecutive dividend payments.
Dividend yield (TTM): 5.5%
Philip Morris International Inc. (PM)
Investors concerned about environmental, social and governance, or ESG, performance can feel free to skip this stock, but income-oriented investors might want to stick around. As one of the largest tobacco manufacturing and sales companies worldwide, PM has since expanded into smoke-free nicotine products, including capitalizing on the recent vaporizer trend. This represents a conscious shift within PM to end the sale of cigarettes as demand continues to drop off worldwide. The company does, however, pay a strong dividend.
Dividend yield (TTM): 5.2%
Sturm Ruger & Co. Inc. (RGR)
Once again, ESG-oriented investors may wish to eschew this stock given its association with firearms. RGR is a very prominent manufacturer of firearms in the U.S., with their rimfire rifles and semi-automatic pistol lineups remaining highly popular with target and recreational shooters alike. Like many firearms manufacturers, Ruger does not sell directly to customers, but instead distributes its products through a number of federally licensed wholesale stores.
Dividend yield (TTM): 5.1%
Best Buy Co. Inc. (BBY)
Despite the risk of online retailers like Amazon.com Inc. (AMZN), BBY continues to hang around as a popular in-person destination for consumer electronics. Physical game consoles, cellphones, smart TVs and PC sales along with their supporting hardware continue to be purchased at BBY stores across the country. The retailer has also expanded its e-commerce capabilities to remain competitive. With over 1,300 stores nationwide, BBY’s presence in electronic sales remains strong for the time being.
Dividend yield (TTM): 4.1%
Blackstone Inc. (BX)
At first glance, this stock is often confused with the larger and more well-known BlackRock Inc. (BLK), but the two are different. BX is a New York City-based financial firm that primarily advises on merger-and-acquisition transactions. The company also holds a portfolio of private equity, real estate and hedge fund investments, and offers boutique investment banking services such as restructuring, fund placement, and even initial public offerings, or IPOs. The low-interest-rate environment of 2018 to 2021 gave BX significant tail winds, helping them source and close multiple deals.
Dividend yield (TTM): 5.7%
Canadian Imperial Bank of Commerce (CM)
As one of Canada’s “Big Six” banks, CM operates in a tightly regulated, oligopolistic industry with an endless customer base. Like many of Canada’s banks, CM has been around for decades, with over 45,000 employees across the country. The company operates retail, capital markets, investment banking and commercial banking segments. CM survived the global financial crisis of 2007-2009 relatively unscathed thanks to its strong balance sheet and solid risk management. As another dual-listed stock on both Canadian and U.S. exchanges, CM offers U.S. investors a higher dividend than most U.S. bank stocks.
Dividend yield (TTM): 4.9%
Universal Corp. (UVV)
UVV is another tobacco company, so if you’re an ESG investor, feel free to skip it. Compared to PM, UVV is much smaller, with a market capitalization of just $1.3 billion. The company acts as a business-to-business supplier of leaf tobacco ingredients to tobacco manufacturers around the world. Services provided by UVV include selecting, procuring, processing, packing, storing, shipping and financing. With a beta of 0.6, UVV is also significantly less volatile than the market. This, combined with its high dividend yield, might make UVV a good defensive pick.
Dividend yield (TTM): 5.6%
Triton International Ltd. (TRTN)
International supply chains are critical to our quality of life. The goods we take for granted often endure long journeys across the world on ships for months to arrive in our stores. A great way to invest in this essential infrastructure is via TRTN, which leases and trades intermodal freight containers. Transportation companies rely on companies like TRTN for their freight containers, which are either leased or resold. The strong demand for TRTN’s services in recent years has made it a cash cow.
Dividend yield (TTM): 3.9%
Lamar Advertising Co. (LAMR)
All sorts of companies are publicly traded, often choosing to use an IPO as a way to raise capital without issuing debt. While the public generally focuses on high-profile tech stocks, it’s easy to forget that some more traditional brick-and-mortar companies with solid business models choose to go public too. A great example is LAMR, which rents the space used for billboards, bus shelters, benches and airport terminal advertisements across the country. Despite the rise of e-commerce, demand for physical advertising space remains steady. As a result, LAMR enjoys strong cash flows, and pays a good dividend yield.
Dividend yield (TTM): 4.3%
10 high-yield dividend stocks to buy:
— Enbridge Inc. (ENB)
— BCE Inc. (BCE)
— Philip Morris International Inc. (PM)
— Sturm Ruger & Co. Inc. (RGR)
— Best Buy Co. Inc. (BBY)
— Blackstone Inc. (BX)
— Canadian Imperial Bank of Commerce (CM)
— Universal Corp. (UVV)
— Triton International Ltd. (TRTN)
— Lamar Advertising Co. (LAMR)
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Update 07/29/22: This story was published at an earlier date and has been updated with new information.