Investing

6 of Wall Street's Most Beloved High-Yield Stocks Are On Sale

Lee Jackson

Published: November 17, 2024 8:44 am

Last Updated: November 17, 2024 6:47 pm

Key Points

• Yields have drifted higher since the Federal Reserve cut rates in September.
• Expect another 25-basis-point cut in December.
• Quality dividend stocks are passive income giants, and a financial advisor can help determine how many you should own. To learn more, click here.

Dividend stocks are a favorite among investors for good reason. They provide a steady income stream of passive income and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time.

In simpler terms, it is the sum of income and stock appreciation. Dividend stocks can boost investment success by delivering regular income and capital appreciation.

Wall Street tends to follow the leader, whomever that may be, in any given year, so it’s unsurprising that many of the top brokerage firms like the same companies, and with good reason. Quality dividend stocks with growth potential have proven to be a winning hand for growth and income investors with a longer time horizon for the past 75 years and will likely continue to.

We screened our 24/7 Wall St. high-yield dividend research database and found six top companies that are universally loved by investment professionals, offer reasonable entry points now and all pay 4% and higher dividends. Of course, all are rated Buy by the top firms that we cover.

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.

Altria

This tobacco company offers value investors a rich 8.17% dividend and is touted across Wall Street as one of the top passive income stocks for investors to own now. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.

The company provides cigarettes primarily under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild brand
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! Oral nicotine pouches

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer. The company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of their holdings but still leaves 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Bristol-Myers Squibb

This top company remains a solid pharmaceutical stock to own long-term, offering an outstanding entry point and a massive 4.56% dividend. Bristol-Myers Squibb Co. (NYSE: BMY) discovers, develops, licenses, manufactures, and markets pharmaceutical products worldwide.

The company offers products in:

• Hematology
• Oncology
• Cardiovascular
• Immunology therapeutic classes

Bristol-Myers Squibb products include:

• Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma
• Opdivo for anti-cancer indications
• Eliquis, an oral inhibitor indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE
• Orencia for adult patients with active RA and psoriatic arthritis, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis

The company also provides:

• Sprycel for the treatment of patients with unresectable or metastatic melanoma
• Abraxane, a protein-bound chemotherapy product
• Implicit for the treatment of multiple myeloma
• Reblozyl for the treatment of anemia in adult patients with beta-thalassemia

Chevron

This integrated giant is a safer option for investors looking to position themselves in the energy sector and pays a 4.33% dividend. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide through its subsidiaries. It operates in two segments.

The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines and transportation, storage
• Marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

Chevron announced a year ago that it has entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion.

Conagra Brands

This is the perfect company for nervous investors. It pays shareholders a big and safe 4.77% dividend. Conagra Brands Inc. (NYSE: CAG) operates primarily as a consumer packaged goods food company in the United States.

The company operates through four segments:

• The Grocery & Snacks segment primarily offers shelf-stable food products through various retail channels.
• The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels.
• The International segment offers food products in various temperature states through retail and food service channels outside the United States.
• The food service segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other food service establishments.

The company sells its products under these familiar brands:

• Birds Eye
• Marie Callender’s
• Duncan Hines
• Healthy Choice
• Slim Jim
• Reddi-Wip
• Angie’s
• BOOMCHICKAPOP

LyondellBasell

This blue-chip chemical giant offers a very dependable 5.71% 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
• and elsewhere

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.

Simon Property Group

This leading real estate company has rallied in 2024 and looks ready to break out to new highs while offering a hefty 4.75% dividend. Simon Property Group Inc. (NYSE: SPG) invests in the global real estate markets. The company invests, owns, manages, and develops properties.

Simon Property Group primarily invests in:

• Regional malls
• Premium outlets
• Mills
• Community/lifestyle centers

Through its subsidiary partnership, it owns or has an interest in about 230 properties in the United States and Asia. The company also has a 28.9% interest in Klepierre, a European REIT with over 260 shopping centers in 13 countries.

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