Passive income investors looking to get paid to navigate a more turbulent stock market should look to the many dividend stocks while their yields are still north of 5%. Undoubtedly, as bond yields climb and markets dip over profound uncertainties, yields that are not only sizeable, but safe and sound could become even more abundant. And while some of these higher-yielders may require braving some pretty nasty share price dips, I think such names can fare well for investors over the long run.
Indeed, it’s an uneasy time for markets, with investors fully tuned into Trump commentary on the size and extensiveness of proposed tariffs on a number of nations, including those of America’s closest allies.
Sure, the stock market pullback could worsen drastically as President Trump claims he’s not even looking at markets as he puts the finishing touches on the rest of his tariff plans. Staying invested, even in such an uncertain time, when a few words from Trump could move markets drastically in either direction, is key. And it’s easier to embrace the rougher ride if you’ll be paid to do so every quarter!
Pfizer
First, we have biopharmaceutical blue chip Pfizer (NYSE:PFE | PFE Price Prediction), a pandemic-era darling that’s fallen back to Earth. The stock crumbled around 55% from its late-2021 peak during its vaccine heyday.
Though the company is eager to get into the red-hot obesity drug market, there have been stumbles along the way. While some of Pfizer’s most promising pipeline candidates still have a number of trials to go, I do think the stock is discounted enough to entail a nice margin of safety. Of course, it’s impossible to tell which candidates will emerge from the Pfizer pipeline as hit sellers and what the full implications of moving part of manufacturing into the U.S. will be.
In any case, the stock trades at 8.8 times forward price-to-earnings (P/E) to go with a sizeable 6.6% dividend yield. Pfizer may be less timely, but shares are cheap, the dividend is impressive, and the stock looks to be bottoming from a technical standpoint. All considered, PFE stock stands out as one of the dividend payers to keep on passive income investors’ radars.
Canadian Natural Resources
If you like yield, Canada’s stock market is definitely worth checking out, especially now that the greenback is in a strong spot compared to the loonie. At $28 and change, Canadian energy juggernaut Canadian Natural Resources (NYSE:CNQ) looks like a worthy addition for U.S. investors.
The stock boasts a 5.6% dividend yield after steadily stumbling more than 30% since peaking around a year ago. Of course, U.S. tariffs on Canadian crude have been rattling Canada’s energy sector. Despite the potential impact, though, the company noted that it’s not about to curb its M&A appetite in response.
It’s been wheeling and dealing, and if more opportunity presents itself, you can expect Canadian Natural to pounce. Despite coming off a few sizeable recent deals, the robust balance sheet opens room for more such deals, which, I believe, could be value creative, especially if tariffs cause a spike in volatility across the oil patch.
Wendy’s
What’s sweeter than a Wendy’s (NYSE:WEN) frosty? Perhaps WEN stock at today’s depressed levels.
For 2025, expectations are quite low for the name, which goes for 15.0 times forward P/E. If you like the product, I’d say about time to buy the stock as it expands AI ordering across more locations through the year. Such efforts should be conducive to margin gains after a troubling past few years.
The company recently set a realistic bar for itself to pass over the long run at its recent Investor Day. The company hopes to hit $17.5-18 billion by its fiscal year 2028. I’d say it’s an achievable target.
While the dividend is poised for a nearly-50% cut (that would entail 3.3% post-cut instead of the 6.6%), such a reduction is already priced in. With the stock down over 36% from its 2020 high, I’d say it’s worth the while to give the fast-food chain a chance as it seeks to discover the value of embracing AI.
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