Dividends serve as an attractive feature for investors looking to generate consistent income alongside capital gains. Essentially, they are a portion of a company’s earnings paid out to shareholders, typically on a quarterly basis. Investing in dividend stocks is often seen as a conservative strategy, aimed at wealth preservation and income generation.
However, the landscape has broadened to include “high dividend stocks,” which offer elevated yields, balancing the scales between risk and reward. While these stocks can provide an enhanced income stream, the higher yield often reflects a higher risk profile, requiring extra due diligence on the part of the investor.
Whether one opts for traditional dividend stocks or high-dividend stocks, the approach should be nuanced. Dividend investing is not just about chasing yield; it’s about understanding the company’s business model, the sustainability of its dividend payout ratio, and its long-term growth prospects. Investors should also take into account external factors like economic conditions and industry trends, as these elements can impact a company’s ability to maintain or grow its dividend. Keeping this on top of mind, here are three high-dividend stocks to watch in the stock market right now.
High Dividend Stocks To Buy [Or Avoid] Now
Pfizer (PFE Stock)
First, Pfizer Inc. (PFE) is a multinational pharmaceutical corporation. The company is known for its research, development, and manufacture of healthcare products. The company has a broad portfolio of vaccines, biologics, and small-molecule medicines that address a range of medical needs. As it stands today, PFE offers its shareholders an annual dividend yield of 4.54%.
At the beginning of this month, Pfizer announced a better-than-expected second quarter of 2023 financial results. In detail, the biotech company posted earnings of $0.67 per share, with revenue of $12.73 billion. This is versus analysts’ consensus estimates for the quarter which were an EPS of $0.56 on revenue estimates of $13.63 billion.
In the last month of trading, shares of PFE stock are up modestly by 0.14%. Meanwhile, during Wednesday morning’s trading action, Pfizer stock opened slightly lower by 0.14% so far at $36.10 a share.
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Devon Energy (DVN Stock)
Next, Devon Energy Corporation (DVN) is an American energy company engaged primarily in oil and natural gas exploration, production, and drilling. Devon operates primarily in the onshore regions of the United States and 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 start of this month, Devon Energy reported its second quarter of 2023 earnings results. Diving in, the energy company posted Q2 2023 earnings of $1.18 per share, along with revenue of $3.45 billion. This is compared to Wall Street’s estimates for Q2 which were earnings of $1.17 per share and revenue of $3.85 billion.
Moreover, in the last month of trading, shares of DVN stock have pulled back by 5.46%. However, during Wednesday morning’s trading session, Devon Energy stock opened modestly higher by 0.65% on the day so far, trading at $51.06 a share.
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Altria Group (MO Stock)
Last but not least, Altria Group Inc. (MO) is an American corporation that holds diversified positions across 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 burgeoning cannabis sector. Currently, Altria offers its shareholders an annual dividend yield of 8.84%.
In August, Altria also reported its second quarter 2023 financial results. The company announced Q2 2023 earnings of $1.31 per share, along with revenue of $6.51 billion for the quarter. This is versus consensus estimates which were earnings of $1.31 per share, on revenue of $5.43 billion.
Looking at the last month of trading, shares of Altria stock have fallen by 2.37%. While, during Wednesday’s mid-morning trading session, MO stock is trading higher on the day so far by 0.27% at $44.34 a share.
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