Investing

Grab These 4 Black Friday High-Yield Dividend Stocks That Are All On Sale

Lee Jackson

Published: December 2, 2024 11:20 am

Key Points

• Don’t be surprised if the stock market takes a breather before an end-of-the-year run.
• The Federal Reserve is expected to cut rates by 25 basis points on December 18.
• That may be the final rate cut we see until spring.
• Have you done a December portfolio checkup? A qualified financial advisor can tell you if you’re set for 2025. Click here to look for one now. (sponsored)

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.

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 the stock market entering the last month of what has been another outstanding year for equity investors and Black Friday sales off the charts this year, with shoppers spending a stunning $10.8 billion online, we thought it might be time to look for some high-yield dividend stocks that are on sale. Often, when a sector steals the limelight during the year as technology and AI stocks have, other sectors get mispriced, and there are bargains galore for growth and income investors.

We checked our 24/7 Wall St. Black Friday high-yield dividend stocks shopping list and found four companies that Wall Street loves and top analysts have Buy ratings on. All pay stellar dividends and offer some serious upside as well.

Why do we cover high-yield dividend stocks?

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.

British American Tobacco

This European giant continues to print money, has a vast product line, and pays a massive 7.95% dividend. British American Tobacco PLC (NYSE: BTI) offers:

• Vapor
• Tobacco heating
• Modern oral nicotine products
• Combustible cigarettes
• Traditional oral products, such as snus and moist snuff

The company offers its products under these well-known brands:

• Vuse
• Glo
• Velo
• Grizzly
• Kodiak
• Dunhill
• Kent
• Lucky Strike
• Pall Mall
• Rothmans
• Camel
• Natural American Spirit
• Newport
• Vogue
• Viceroy
• Kool
• Peter Stuyvesant
• Craven A
• State Express 555
• Shuang Xi brands

Dow

This company was recently removed from the Dow Jones industrial average but offers investors growth and income potential with a huge 6.33% dividend. Dow Inc. (NYSE: DOW) is a leading materials science company formed by the merger of Dow and DuPont in 2017 and subsequent spinoff in 2019.

The company is organized into three principal divisions:

• Performance Materials & Coatings
• Industrial Intermediates & Infrastructure
• Packaging & Specialty Plastics

The company’s segments include Agricultural Sciences, which provides crop protection, seed/plant biotechnology products and technologies, urban pest management solutions, and healthy oils.

Consumer Solutions, which consists of:

• Consumer Care
• Dow Automotive Systems
• Dow Electronic Materials
• Consumer Solutions-Silicones businesses

Infrastructure Solutions, which consists of:

• Dow Building & Construction
• Dow Coating Materials
• Energy & Water Solutions
• Performance Monomers and Infrastructure Solutions-Silicones businesses
• Performance Materials & Chemicals consists of Chlor-Alkali and Vinyl, Industrial Solutions and Polyurethanes businesses.
• Performance Plastics, which consists of Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics
• Energy and Hydrocarbons business

Hess Midstream

This is the limited partnership midstream arm of one of the country’s top energy companies, which owns 38% of the company and pays a stellar 7.23% dividend. Hess Midstream L.P. (NYSE: HESM) owns, develops, operates, and acquires midstream assets.

The company operates through three segments:

• Gathering
• Processing and Storage
• Terminating and exporting

The Gathering segment owns natural gas gathering and crude oil gathering systems and produces water gathering and disposal facilities.

Its gathering system consists of approximately:

• 1,350 miles of high and low-pressure natural gas and natural gas liquids gathering pipelines with a capacity of about 450 million cubic feet per day
• The crude oil gathering system comprises approximately 550 miles of crude oil gathering pipelines

The Processing and Storage segment comprises:

• Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota
• 50% interest in the Little Missouri 4 gas processing plant located south of the Missouri River in McKenzie County, North Dakota
• Mentor Storage Terminal, a propane storage cavern, and rail and truck loading and unloading facility located in Mentor, Minnesota

The Terminaling and Export segment owns the Ramberg terminal facility, Tioga rail terminal, crude oil rail cars, and Johnson’s Corner Header.

Western Union

While the demand for telegrams is long gone, the demand to transfer money is not, and this famous company has grown as a result. It pays a strong 8.55% dividend and trades at a ridiculous 6.1 times estimated 2025 earnings. Western Union Co. (NYSE: WU) provides worldwide money movement and payment services.

The company operates in two segments:

• Consumer-to-Consumer
• Business Solutions

The Consumer-to-Consumer segment facilitates international cross-border and intra-country money transfers, primarily through a network of retail agent locations, websites, and mobile devices.

The Business Solutions segment provides payment and foreign exchange solutions, primarily cross-border and cross-currency transactions for small and medium-sized enterprises, other organizations, individuals, and foreign currency forward and option contracts.

It also offers bill payment services that facilitate payments from consumers to businesses and other organizations, as well as offers money orders and other services.

Four Ultra-High-Yield Stocks Yielding at Least 10% Are Our Top December Picks