7 High Yield Dividend Stock 2024

These 7 companies present attractive dividend opportunities for investors seeking income in their portfolios. Each offers a compelling yield, often significantly higher than the broader market, making them particularly appealing in an environment of low interest rates.

Investors seeking to diversify their portfolios and generate reliable income streams may find these dividend-paying stocks attractive. However, as with any investment, it’s essential to conduct thorough research and consider factors such as the company’s financial health, industry trends, and macroeconomic conditions before making investment decisions.

Energy Transfer (NYSE: ET)

Energy Transfer (NYSE: ET) specializes in natural gas transportation and storage. As a master limited partnership (MLP), Energy Transfer acts as a pass-through entity — meaning that both profits and losses are passed through limited partners (like investors).

Energy Transfer currently trades at a price-to-earnings (P/E) ratio of 13.9 — about half of its long-term average. Given its recent acquisition of Crestwood Energy Partners, I think investors may be discounting the effect on Energy Transfer’s future growth.

With shares trading at such a steep discount to historical valuation levels, now could be a good time to start a position at an 8% yield.

Enterprise Products Partners (NYSE: EPD)

Enterprise Products Partners (NYSE: EPD) is a midstream energy company that has managed to raise its dividend, which yields about 7.2%. EPD currently trades at a forward P/E of just 10.3, significantly lower than the S&P 500. Given the company’s recent acquisitions, I think investors could be discounting the long-run potential of Enterprise Products Partners.

Enbridge (NYSE: ENB)

Enbridge (NYSE: ENB) is a natural gas storage and pipeline management operation. Despite facing headwinds in the past year, including a 10% decline in share value, Enbridge remains focused on growth through acquisitions. At a P/E of just 16.5, Enbridge is trading well below its five-year average. Shares at such a steep discount and a nearly 8% yield could be an attractive opportunity for investors.

Kinder Morgan (NYSE: KMI)

Kinder Morgan (NYSE: KMI) had a challenging year in 2023, with revenue, EBITDA, and free cash flow experiencing dips. However, with its recent acquisition of STX Midstream, Kinder Morgan looks well positioned to return to growth. Shares at a 6.5% yield could be an interesting buy as the company aims to rebound and increase distributions.

Rithm Capital (NYSE: RITM)

Rithm Capital (NYSE: RITM) is a real estate investment trust (REIT) trading over 40% below decade highs. Rithm is a mortgage REIT, competing with companies like Arbor Realty Trust and Annaly Capital Management. At a P/B of just 0.92, Rithm is trading at the lowest multiple among its peers. Shares offer a sizzling 9.1% yield, making it a unique opportunity for investors.

Must read : $10,000 Passive Income from 3 Energy Dividend Stocks

Altria (NYSE: MO)

Altria (NYSE: MO) is known for its tobacco brands and offers a dividend yield of 9.6%. Despite challenges in the tobacco market, Altria has maintained its position as a Dividend King, raising dividends for at least 50 consecutive years.

Verizon Communications (NYSE: VZ)

Verizon Communications (NYSE: VZ) provides telecommunications services with a 6.6% dividend yield. In September 2023, Verizon raised its dividend for the 17th consecutive year, showcasing its commitment to shareholders. While not offering significant growth prospects, Verizon’s dividend is stable and reliable compared to its competitors.

Additionally, the stability of these companies, despite facing various challenges in their respective industries, underscores their resilience and ability to generate consistent cash flows. This stability is further supported by their commitment to returning value to shareholders through regular dividend payments and, in some cases, dividend increases.

Moreover, the recent acquisitions and strategic moves made by these companies signal their intent to position themselves for future growth. While short-term challenges may impact their stock prices, the long-term outlook remains positive for these dividend-paying stalwarts.

In conclusion, these dividend-paying companies offer not only attractive yields but also the potential for long-term capital appreciation, making them valuable additions to income-focused investment portfolios.