24/7 Wall St. Insights
- High-yield dividend stocks are in big demand as interest rates drop.
- Look for another 25-basis-point federal funds cut in November after the election.
- Passive income is simple: own quality dividends that pay you for doing nothing. Don’t miss out on our brand-new “7 Things I Demand in a Dividend Stock” report. It includes two A++ dividend stocks and how to spot future dividend winners that can put your returns on hyperdrive. Access two legendary, high-yield dividend stocks Wall Street loves.
Investors love dividend stocks, especially the high-yield variety because they offer a significant income stream and have massive total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation.
For example, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%. That is, 10% for the increase in stock price and 3% for the dividends paid.
We screened our 24/7 Wall St. high-yield passive income stock database, looking for quality stocks that pay at least a 6% dividend. Four companies that look like bargains caught our eye. All pay dependable 6% and higher dividends, and at current trading levels, they are October deals for investors looking to add income-producing winners.
Why do we cover dividend stocks?
Dividend 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.
Enterprise Products Partners
An American midstream natural gas and crude oil pipeline company headquartered in Houston, Texas.
This company is one of the largest publicly traded energy partnerships and pays a 7.21% dividend. Enterprise Products Partners L.P. (NYSE: EPD | EPD Price Prediction) provides various midstream energy services, including:
- Gathering
- Processing
- Transporting and storing natural gas, natural gas liquids (NGL) fractionation
- Import and export terminalling
- Offshore production platform services
The company has four reportable business segments:
- Natural Gas Pipelines and Services
- NGL Pipelines and Services
- Petrochemical Services
- Crude Oil Pipelines and Services
Many analysts have always liked the stock because of its distribution coverage ratio, which is well above 1x. This makes the company relatively less risky in the MLP sector.
HSBC
One of the world’s largest banking and financial services institutions.
Based in England, this company is the current version of the old Hong Kong Shanghai Banking Corporation and pays investors a rich 6.74% dividend. HSBC Holdings PLC (NYSE: HSBC) provides banking and financial services worldwide.
The company operates through three segments:
- Wealth and Personal Banking
- Commercial Banking
- Global Banking and Markets
The Wealth and Personal Banking segment offers:
- Retail banking and wealth products
- Current and savings accounts
- Mortgages and personal loans
- Credit and debit cards
- Local and international payment services
- Wealth management services comprising insurance and investment products
- Global asset management services, investment management, and private wealth solutions
This segment serves personal banking and high-net-worth individuals.
The Commercial Banking segment provides:
- Credit and lending
- Treasury management
- Payment
- Cash management
- Commercial Insurance
- Investment services
- Commercial cards
- International trade and receivables finance services
- Foreign exchange products
- Capital raising services on debt and equity markets
- Advisory services.
It serves small and medium-sized enterprises, mid-market enterprises, and corporates.
The Global Banking and Markets segment offers financing, advisory, transaction services, credit, rates, foreign exchange, equities, money markets, securities services, and principal investment activities.
Peakstone Realty Trust
A leading industrial and office REIT that owns and operates a high-quality portfolio of predominantly single-tenant properties.
This small-cap REIT pays a sizzling 6.6% dividend and offers a stellar entry point at current trading levels. Peakstone Realty Trust (NYSE: PKST) is an internally managed real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations.
As of March 31, 2023, Peakstone’s wholly owned portfolio comprises 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.
The company CEO recently announced the closing of an amended credit facility, which extended debt maturities, lowered the company’s borrowing costs, and provided a solid foundation for growth. Notably, the amended facility provides Peakstone Realty with increased flexibility to make industrial investments and build long-term shareholder value over time.
Verizon
An American multinational telecommunications conglomerate commonly known as Verizon.
This top telecommunications company offers tremendous value, trading at 9.5 times estimated 2025 earnings and paying investors a strong 6.03% dividend. Verizon Communications Inc. (NYSE: VZ), through its subsidiaries, provides communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide.
It operates in two segments:
- Verizon Consumer Group
- Verizon Business Group
The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements.
It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:
- Smartphones
- Tablets
- Smartwatches and other wireless-enabled connected devices
The segment also offers wireline services in the northeastern United States, the Mid-Atlantic, and the District of Columbia. through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network.
The Business segment provides wireless and wireline communications services and products, including:
- FWA broadband
- Data
- Video and conferencing
- Corporate networking
- Security and managed network
- Local and long-distance voice
- Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally
Four High-Yield Dividend Kings Baby Boomers Count on for Safe Passive Income
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