24/7 Wall St. Insights

• Wall Street is looking for 50 basis points of rate cuts for the rest of 2024.
• Quality high-yield dividend stocks will remain in demand for years.
• Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “7 Things I Demand in a Dividend Stock,” plus get our two best dividend stocks to own today. Access two legendary, high-yield dividend stocks Wall Street loves.

Investors love dividend stocks, especially the high-yield variety because they provide dependable income, passive income streams, and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation.

Let’s take a closer look at the concept of total return. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.

With Wall Street expecting the federal funds rate to be as low as 3.25% by 2026, you can bet that investors are looking for quality, high-yield companies they can buy now and hold for 20 years. We found five that fit the bill perfectly. All are rated Buy at top Wall Street firms and pay at least a 5% dividend.

Why do we cover dividend stocks?

Dividend stocks, especially high-yield stocks, provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

AT&T

The legacy telecommunications company has been undergoing a lengthy restructuring while lowering its dividend, which still stands at 5.07%. AT&T Inc. (NYSE: T) provides worldwide telecommunications, media, and technology services. Its Communications segment offers wireless voice and data communications services.

AT&T sells through its company-owned stores, agents, and third-party retail stores:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices

AT&T also provides:

• Data
• Voice
• Security
• Cloud solutions
• Outsourcing
• Managed and professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers.

In addition, this segment offers residential customers broadband fiber and legacy telephony voice communication services.

It markets its communications services and products under these brands:

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber

The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.

Crown Castle International

This top cell tower company offers incredible growth and income possibilities with a fat 5.37% dividend. Crown Castle International Corp. (NYSE: CCI) is one of the largest U.S. wireless tower companies, with over 40,000 towers and approximately 90,000 route miles of fiber supporting small cells and fiber solutions across every primary U.S. market.

The company’s core business is leasing space on its wireless towers, primarily to wireless carriers, government agencies, and broadband data providers.

This nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology, and wireless service – bringing information, ideas, and innovations to the people and businesses that need them.

Crown Castle is one of the best stocks in the sector for more conservative investors. Its high yield distribution and low volatility make it a good holding for accounts seeking growth, income, and less risk.

Enbridge

This is an off-the-radar idea based in Canada, which looks poised to break out to new highs soon and pays a rich 6.66% dividend. Enbridge Inc. (NYSE: ENB) operates as an energy infrastructure company.

The company operates through five segments:

• Liquids Pipelines
• Gas Transmission and Midstream
• Gas Distribution and Storage
• Renewable Power Generation
• Energy Services

The Liquids Pipelines segment operates pipelines and related terminals in Canada and the United States to transport various grades of crude oil and other liquid hydrocarbons.

The Gas Transmission and Midstream segment invests in natural gas pipelines and gathering and processing facilities in Canada and the United States.

The Gas Distribution and Storage segment is involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario and natural gas distribution and energy transportation activities in Quebec.

The Renewable Power Generation segment operates power-generating assets, such as wind, solar, geothermal, waste heat recovery facilities, and transmission assets in North America and Europe.

The energy services segment provides energy marketing services to refiners, producers, and other customers, as well as physical commodity marketing and logistical services in Canada and the United States.

LyondellBasell

This blue-chip chemical giant offers a very dependable 5.56% dividend. LyondellBasell Industries N.V. (NYSE: LYB) operates as a chemical company in:

• The United States
• Germany
• Mexico
• Italy
• Poland
• France
• Japan
• China
• the Netherlands
• Internationally

The company operates in six segments:

• Olefins and Polyolefins-Americas
• Olefins and Polyolefins-Europe, Asia, International
• Intermediates and Derivatives
• Advanced Polymer Solutions
• Refining
• Technology

It produces and markets olefins and co-products, polyethylene and polypropylene, propylene oxide and derivatives, oxyfuels and related products, and intermediate chemicals, such as styrene monomer, acetyls, ethylene oxide, and ethylene glycol.

In addition, the company produces and markets compounding and solutions, including:

• Polypropylene compounds
• Engineered plastics, masterbatches,
• Engineered composites, colors and powders
• Advanced polymers, including catalloy and polybutene-1
• Refines heavy, high-sulfur crude oil, other crude oils, and refined products, including gasoline and distillates.

Further, it develops and licenses chemical and polyolefin process technologies; manufactures and sells polyolefin catalysts; and serves food packaging, home furnishings, automotive components, and paints and coatings applications.

W.P. Carey

This quality REIT stock pays a sweet 5.58% dividend that investors will enjoy as rates decline. W.P. Carey Inc. (NYSE: WPC) ranks among the largest net lease REITs with a well-diversified portfolio of high-quality, operationally critical commercial real estate, including 1,291 net lease properties covering approximately 170 million square feet and 89 self-storage operating properties as of June 30, 2023.

With offices in New York, London, Amsterdam, and Dallas, the company remains focused on investing primarily in single-tenant, industrial, warehouse, and retail properties in the U.S. and Northern and Western Europe under long-term net leases with built-in rent escalations.

In September, the company reported that its board of directors increased its quarterly cash dividend to $0.875 per share, equivalent to an annualized dividend rate of $3.50 per share. The dividend is payable on October 15, 2024, to stockholders of record as of September 30, 2024.

 Three Best Ultra-High-Yield Stocks Under $20 Yielding 13% to Buy Now

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