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• Dividend stocks for many reasons often end up as value stocks and that spells opportunity.
• High-yield dividend stocks offer incredible passive income streams.
• Check out this hot offer: Access 2 legendary, high-yield dividend stocks Wall Street loves.

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.

A study from the Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past half-century (1973-2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

In the investing world, companies are penalized for a number of reasons, some sensible and some not so much. Sometimes, their products or services go out of favor, or they have an earnings implosion. One thing is certain: for investors with long-term time horizons, taking advantage of a pricing error by trigger-finger sellers can be very profitable.

We screened our 24/7 Wall St. research database, looking for beaten-down, high-yield stocks offering investors incredible dividends and outstanding price entry points. Despite the penalty-box status of all five companies, they will all remain in business and offer a potential total return home run to the patient dividend lover. 

Healthcare Realty Trust

This Medical REIT offers investors a strong 7.52% dividend. Healthcare Realty Trust Inc. (NYSE: HR) is a real estate investment trust (REIT) that owns and operates medical outpatient buildings primarily around market-leading hospital campuses.

The company selectively grows its portfolio through property acquisition and development. As the first and largest REIT specializing in medical outpatient buildings, Healthcare Realty’s portfolio includes over 700 properties totaling over 40 million square feet concentrated in 15 growth markets.

The company’s board of directors recently authorized the repurchase of up to $500.0 million of outstanding shares of the company’s common stock. In April, the company repurchased 3.0 million shares totaling $41.7 million at an average price of $14.07 per share.

In addition, Healthcare Realty Trust announced a $383 million joint venture deal with KKR at a 6.6% cap rate with expected proceeds of $300 million.

Pfizer

This top pharmaceuticalstock was a massive winner in the COVID-19 vaccine sweepstakes but has been crushed as many are not getting boosters. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide and pays a hefty 5.88% dividend, which has risen yearly for the last 14 years.

The company offers medicines and vaccines in various therapeutic areas, including:

• Cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands
• Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
• Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands.

Pfizer also provides medicines and vaccines in various therapeutic areas, such as:

• Pneumococcal disease, meningococcal disease, tick-borne encephalitis
• COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
• Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
• Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands

Trading at its lowest split-adjusted level in 13 years, the stock is an incredible bargain at current levels and pays a massive dividend. Despite a stunning 44% decline in profits, the company still posted first-quarter earnings above Wall Street estimates. The company reported $0.55 diluted earnings per share and $14.9 billion in first-quarter sales, trouncing analysts’ estimates of $0.51 and $13.87 billion, respectively.

While the pharmaceutical giant reported its fifth straight year of year-over-year revenue and net income declines, the numbers are still skewed somewhat from the enormous revenues posted during the pandemic. Patient investors will get paid one of the highest blue-chip dividends going, and shares trade at a reasonable 10.75 times estimated 2025 earnings. It should also be noted the company has nine new drugs approved by the FDA in 2023. 

TFS Financial

This under-the-radar financial stock holds immense potential for total returns and offers a huge 9.21% dividend. As a retail consumer banking services provider in the United States, TFS Financial Corp. (NASDAQ: TFSL) is a very promising investment opportunity.

Its deposit products include:

• Savings
• Money market
• Checking
• Individual retirement and other qualified plan accounts
• Certificates of deposit

The company also provides:

• Residential real estate mortgage loans
• Residential construction loans
• Home equity loans
• Lines of credit
• Purchase mortgages
• First mortgage refinance loans

In addition, it offers escrow and settlement services. The company provides its products and services through its main office in Cleveland, Ohio, and multiple full-service branches and loan production offices throughout Ohio and Florida.

Vale

This excellent commodity play pays investors a stellar 13.94% dividend and is trading just above a 52-week low, so there is huge value in the company now. Vale S.A. (NYSE: VALE) and its subsidiaries produce and sell iron ore and iron ore pellets as raw materials in steelmaking in Brazil and internationally.

The company operates through the Iron Solutions and Energy Transition Materials segments.

The Iron Solutions segment produces and extracts iron ore, pellets, manganese, and other ferrous products and provides related logistic services.

The Energy Transition Materials segment produces and extracts nickel, which is used to produce stainless steel, electric vehicles, and metal alloys, and its by-products, such as gold, silver, cobalt, precious metals, platinum, and others.

It also produces and extracts copper, which is used in the construction sector to produce pipes and electrical wires.

Five Under $50 Dividend Stocks to Buy Now

Walgreens Boots Alliance

This huge drugstorechain is a safe retail play, paying a 6.43% dividend and trading just above a 52-week low. Walgreens Boots Alliance Inc. (NASDAQ: WBA) is a pharmacy-led health and beauty retail company with three segments:

• Retail Pharmacy USA
• Retail Pharmacy International
• Pharmaceutical Wholesale

The Retail Pharmacy USA segment sells prescription drugs and various retail products, including health, wellness, beauty, personal care, consumables, and general merchandise products, through its retail drugstores. 

It also provides specialty pharmacy services and mail services. This segment operates nearly 10,000 retail stores under the Walgreens and Duane Reade brands in the United States and six specialty pharmacies

Walgreens Boots Alliance’s Retail Pharmacy International segment is a testament to its diverse product offerings. It sells prescription drugs, health and wellness products, beauty products, personal care products, and other consumer products through its pharmacy-led health and beauty stores and optical practices.

The International segment has operations in:

• The United Kingdom
• Thailand
• Norway
• The Republic of Ireland
• The Netherlands
• Mexico
• Chile 

The company also operates 550 optical practices, including 165 on a franchise basis.

The Pharmaceutical Wholesale segment engages in the wholesale and distribution of specialty and generic pharmaceuticals, health and beauty products, and home healthcare supplies and equipment, as well as provides related services to pharmacies and other healthcare providers.

The shares were hit hard after the company cut the dividend earlier this year. Still, with management again trying to sell Boots pharmacies based in the United Kingdom, and closing under-performing store, investors have again started to bid the shares higher.

 

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