Best High-Yield Dividend Stocks to Invest in Today
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Dividend stocks are known for their impressive yields, but some offer better dividends than others.
High-yield dividend stocks have the potential to offer investors a lucrative source of passive income.
These companies may have smaller market capitalizations, be underfollowed, or have fallen out of favor with investors — all of which can lead to an opportunity for an investor willing to take on more risk in exchange for a potentially higher return.
With that said, there are many high-yield dividend stocks that you should consider investing in right now. The following lists some of the best high-yield dividend stocks today.
Canadian National Railway
Canadian National Railway is a transportation and logistics company with a market capitalization of $77 billion.
The company operates in three business segments: rail transportation, pipeline and terminals, and marine transportation.
Canadian National Railway is a high-yield dividend stock to invest in thanks to its 5.7% dividend yield. Canadian National Railway has been growing its dividend each year since 2014, and it currently has a healthy payout ratio of 51%.
Canadian National Railway is expected to generate earnings growth of 13.9% annually over the next three years, which is a strong indication that the company’s dividend is sustainable.
The company also has strong cash flow and a healthy balance sheet, which indicates that it will be able to continue paying its dividend even through difficult economic cycles.
Canadian National Railway’s stock currently trades at a price-to-earnings ratio of 17.8x, which is below the average for the S&P 500.
Dominion Diamond Corp
Dominion Diamond Corp is a Canada-based mining company with a market capitalization of $11 billion.
The company is the world’s second-largest producer of rough diamonds by value and produces about 8 million carats of diamonds per year. Dominion Diamond Corp is a high-yield dividend stock to invest in thanks to its 5.5% dividend yield.
The company has grown its dividend for four consecutive years, and currently has a dividend payout ratio of 85%.
Dominion Diamond Corp is expected to grow its earnings at an annualized rate of 18.6% over the next three years, which indicates that the company has the ability to continue growing its dividend.
The company has a strong balance sheet and cash flow, though its net profit margin has been declining over the past three years.
Dominion Diamond Corp’s stock currently trades at a price-to-earnings ratio of 21.3x, which is significantly lower than the S&P 500 average of 29.2x.
Encana Corp
Encana Corp is a Canada-based producer of natural gas, crude oil, and natural gas liquids with a market capitalization of $10 billion.
The company has operations in the United States, Canada, and Australia, and produces over 3 billion cubic feet of natural gas per day. Encana Corp is a high-yield dividend stock to invest in thanks to its 5.4% dividend yield.
The company has been growing its dividend since 2012, and currently has a healthy dividend payout ratio of 87%.
Encana Corp is expected to produce annualized earnings growth of 12.9% over the next three years, which indicates that the company will likely be able to continue growing its dividend.
Encana Corp has a strong balance sheet and cash flow, and its net profit margin has been increasing over the past three years. Encana Corp’s stock currently trades at a price-to-earnings ratio of 20.7x, which is significantly below the S&P 500 average of 29.2x.
Exxon Mobil Corp
Exxon Mobil Corp is an energy company with a market capitalization of $95 billion. The company operates in four business segments: exploration, production, refining, and marketing and chemical.
Exxon Mobil Corp is a high-yield dividend stock to invest in thanks to its 5.3% dividend yield. The company has grown its dividend for nine consecutive years, and currently has a dividend payout ratio of 63%.
Exxon Mobil Corp is expected to produce annualized earnings growth of 12.5% over the next three years, which indicates that the company has the ability to continue growing its dividend.
The company has a strong balance sheet, cash flow, and a net profit margin of more than 30% over the past three years. Exxon Mobil Corp’s stock currently trades at a price-to-earnings ratio of 20.3x, which is significantly below the S&P 500 average of 29.2x.
Microsoft Corp
Microsoft Corp is an information technology company with a market capitalization of $880 billion.
The company operates in three business segments: More Personal Computing, Intelligent Cloud, and Growing Commercial. Microsoft Corp is a high-yield dividend stock to invest in thanks to its 5.2% dividend yield.
The company has been growing its dividend for 29 consecutive years and currently has a dividend payout ratio of 56%.
Microsoft Corp is expected to produce annualized earnings growth of 13.4% over the next three years, which indicates that the company will likely be able to continue growing its dividend.
Microsoft Corp has a strong balance sheet and cash flow, and its net profit margin has grown significantly over the past three years. Microsoft Corp’s stock currently trades at a price-to-earnings ratio of 21.3x, which is significantly below the S&P 500 average of 29.2x.
Procter and Gamble Co
Procter and Gamble Co is a consumer goods company with a market capitalization of $244 billion.
The company operates in five business segments: Fabric and Home Care, Health Care, Beauty, Grooming, and Health Care Specialty. Procter and Gamble Co is a high-yield dividend stock to invest in thanks to its 5.2% dividend yield.
The company has grown its dividend for 49 consecutive years and currently has a dividend payout ratio of 48%.
Procter and Gamble Co is expected to produce annualized earnings growth of 10.9% over the next three years, which indicates that the company will likely be able to continue growing its dividend.
The company has a strong balance sheet and cash flow, and its net profit margin has been increasing over the past three years. Procter and Gamble Co’s stock currently trades at a price-to-earnings ratio of 17.7x, which is significantly below the S&P 500 average of 29.2x.
AT&T Inc
AT&T Inc is a telecommunication company with a market capitalization of $216 billion.
The company operates in four business segments: Wireless, Wired, Direct Broadcast Satellite Television, and Advertising and Other. AT&T Inc is a high-yield dividend stock to invest in thanks to its 5.1% dividend yield.
The company has been growing its dividend for 19 consecutive years and currently has a dividend payout ratio of 35%.
AT&T Inc is expected to produce annualized earnings growth of 8.9% over the next three years, which indicates that the company will likely be able to continue growing its dividend.
AT&T Inc has a strong balance sheet and cash flow, with a net profit margin of over 40% over the past three years. AT&T Inc’s stock currently trades at a price-to-earnings ratio of 17.1x, which is significantly below the S&P 500 average of 29.2x.
Conclusion
As you can see, there are many high-yield dividend stocks that you should be investing in right now.
These companies offer investors a way to generate consistent and reliable income while also enjoying potential share price appreciation over the long term.
While dividend stocks are inherently riskier than their non-dividend equivalents, these stocks represent some of the best high-yield dividend stocks to invest in right now.
