What stock pays the highest dividend yield in 2024?
Understanding High-Yield Dividend Stocks: A Simple Guide When it comes to high-yield dividend stocks, there's no official definition. However, most investors agree that these are stocks with a dividend yield higher than typical benchmarks like the S&P 500 index or a 10-year U.S. Treasury note. In early 2024, the S&P 500's average dividend yield was around 1.5%, while the 10-year note was about 4.1%. Some investors consider a stock high-yield if its dividend is double that of the S&P 500, while others look for a yield at or above the 10-year note level. Important Note: Don't invest in a stock just because it has a high dividend yield. It's crucial to ensure that the dividend is sustainable. Look for companies with solid financial health, strong cash flow, and potential for growth. Below, we’ve highlighted 20 high-yield dividend stocks that could be great additions to your portfolio in 2024.
Understanding High-Yield Dividend Stocks: A Simple Guide
When it comes to high-yield dividend stocks, there’s no official definition. However, most investors agree that these are stocks with a dividend yield higher than typical benchmarks like the S&P 500 index or a 10-year U.S. Treasury note.
In early 2024, the S&P 500’s average dividend yield was around 1.5%, while the 10-year note was about 4.1%. Some investors consider a stock high-yield if its dividend is double that of the S&P 500, while others look for a yield at or above the 10-year note level.
Important Note: Don’t invest in a stock just because it has a high dividend yield. It’s crucial to ensure that the dividend is sustainable. Look for companies with solid financial health, strong cash flow, and potential for growth. Below, we’ve highlighted 20 high-yield dividend stocks that could be great additions to your portfolio in 2024.
Highlights of Selected High-Yield Dividend Stocks
- AbbVie (NYSE: ABBV): Since its spinoff from Abbott Labs in 2013, AbbVie has increased its dividend by 285%. Despite losing exclusivity on its top drug Humira in 2023, new products like Rinvoq and Skyrizi, along with strategic acquisitions, have positioned AbbVie well for future growth.
- AvalonBay Communities (NYSE: AVB): As a leading apartment REIT, AvalonBay collects steady rental income, supporting its 3.7% dividend yield. With a strong financial profile and ongoing demand for apartments, it’s poised for continued dividend growth.
- Brookfield Infrastructure (NYSE: BIP/BIPC): Operating across utilities, transportation, energy, and data, Brookfield Infrastructure has a stable cash flow. With 14 consecutive years of dividend increases and a solid growth outlook, it’s a reliable high-yield choice.
- Duke Energy (NYSE: DUK): Serving millions of customers, Duke Energy has a nearly century-long dividend payment history. With ongoing investments in infrastructure, Duke’s dividend is expected to grow alongside its earnings.
- Chevron (NYSE: CVX): Chevron is committed to sustaining and growing its dividend, with a 36-year streak of annual increases. Its diversified operations and recent acquisitions further enhance its ability to keep rewarding shareholders.
These are just a few of the high-yield dividend stocks that stand out in 2024. When considering these options, remember to focus on the company’s overall health and potential for future growth, ensuring that the dividends you’re relying on are sustainable for the long term.
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