Dividends are an attractive feature for investors looking to generate consistent income in addition to capital gains. Essentially, they are a portion of a company’s profits that are paid out to shareholders, generally on a quarterly basis. Invest in dividend stocks is often seen as a conservative strategy, aimed at preserving wealth and generating income.
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However, the landscape has broadened to include “high-dividend stocks,” which offer higher returns and balance the risk/reward balance. While these stocks can provide a better income stream, the higher returns often reflect a higher risk profile, requiring additional due diligence on the part of the investor.
Whether one chooses traditional dividend stocks or high dividend stocks, the approach should be nuanced. Dividend investing isn’t just about chasing returns; it’s about understanding the company’s business model, the sustainability of the dividend payout ratio, and its long-term growth prospects. Investors should also consider external factors such as economic conditions and industry trends, as these elements can affect a company’s ability to maintain or grow its dividend. To keep this in mind, here are three high-dividend stocks to keep an eye on scholarship straight away.
Stocks with high dividends to buy [Or Avoid] Now
Pfizer (PFE stock)
First, Pfizer Inc. (PFE) is a multinational pharmaceutical company. The company is known for its research, development and production of healthcare products. The company has a broad portfolio of vaccines, biologics and small molecule drugs that address a range of medical needs. In its current form, PFE offers its shareholders an annual dividend yield of 4.54%.
At the beginning of this month, Pfizer announced better-than-expected financial results for the second quarter of 2023. In detail, the biotech company posted earnings of $0.67 per share on revenue of $12.73 billion. This is compared to analyst consensus estimates for the quarter, which were earnings per share of $0.56 on a revenue estimate of $13.63 billion.
In the last month of trading, PFE stocks are up modestly by 0.14%. Meanwhile, shares of Pfizer opened slightly lower during Wednesday morning’s trading action, down 0.14% year to date, at $36.10 per share.
Devon Energy (DVN shares)
Next one, Devon Power Company (DVN) is an American energy company primarily engaged in the exploration, production and drilling of oil and natural gas. Operating primarily in the onshore regions of the United States, Devon is a leader in the use of horizontal drilling and hydraulic fracturing technologies. Today, Devon Energy has an annual dividend yield of 9.78%.
Also at the beginning of this month, Devon Energy reported its earnings results for the second quarter of 2023. As the energy company dives in, the energy company posts Q2 2023 earnings of $1.18 per share, along with revenue of $3. 45 billion. This compares to Wall Street’s Q2 estimates, which saw earnings per share of $1.17 and revenues of $3.85 billion.
In addition, shares of DVN shares are down 5.46% in the last month of trading. However, during Wednesday morning’s trading session, shares of Devon Energy opened modestly higher by 0.65% on the day so far, trading at $51.06 per share.
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Altria Group (MO stock)
Finally, Altria Group Inc. (MO) is an American company with diversified positions in the tobacco, alcohol and cannabis industries. The company owns several major tobacco brands, including Marlboro, and has significant investments in vaping and wine businesses. Altria has also made strategic investments in the fast-growing cannabis sector. Currently, Altria offers its shareholders an annual dividend yield of 8.84%.
In August, Altria also reported its financial results for the second quarter of 2023. The company reported earnings of $1.31 per share for the second quarter of 2023, along with revenue of $6.51 billion for the quarter. This is versus consensus estimates of earnings of $1.31 per share on revenue of $5.43 billion.
Looking at the last trading month, Altria shares are down 2.37%. While MO shares traded up 0.27% year to date at $44.34 per share during Wednesday’s midmorning trading session.
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