Investors love dividend stocks, especially those with dependable yields of 7% or higher, because they offer a significant income stream and have substantial 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 examine the concept of total return. If you purchase a stock at $20 that pays a 3% dividend ($0.60 per share) and the price rises to $22 in a year, your total return is 13%. This combines the price appreciation of 10% and the dividend received.
24/7 Wall St. Key Points:
- With the economy showing signs of weakening, the odds of a rate cut are growing
- The Fed’s dot plot indicates there will be two rate cuts, with the first likely in September
- Stocks with 7% and higher dividends should get a nice tailwind from rate cuts
- Are quality stocks with 7% dividends a good idea for you? Why not contact an experienced financial advisor near you for a complete portfolio review? Click here to get started finding one today. (Sponsored)
After a massive rally off the lows in April, the S&P 500 and the NASDAQ have stormed back to all-time highs. Unfortunately, there may be some economic storm clouds on the horizon, and with the market overbought and the S&P 500 trading at 28 times trailing earnings, we are likely going to see a pullback that could be as much as 10%. Now may be the perfect time to take some profits, especially on technology names, and allocate that capital to quality stocks with dividend yields of 7% or higher. We found four stocks that pay 7% or higher dividends, and two of the stocks pay their shareholders monthly.
Why do we cover dividend stocks?
At 24/7 Wall St., we have closely followed dividend-paying stocks for over 15 years. With a growing audience of savvy Baby Boomers, retirees, and other investors seeking safe income ideas that deliver more than the 10-year Treasury bond’s 4.28% bi-annual dividend, we have screened hundreds of stocks, looking for recurring, dependable dividend payouts and a degree of safety that allows for a good night’s sleep.
Apple Hospitality REIT
Apple Hospitality REIT owns one of the largest portfolios of upscale, select-service hotels in the United States. Apple Hospitality REIT, Inc. (NYSE: APLE) | APLE Price Prediction is a publicly traded real estate investment trust that pays a solid monthly dividend and distinguishes itself in the market with its unique offerings.
The Company comprises 224 hotels with more than 30,066 guest rooms in 87 markets throughout 37 states, as well as one property leased to third parties.
Apple Hospitality REIT’s portfolio comprises 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels.
Its hotels operate primarily under Marriott or Hilton brands. They are operated and managed under separate management agreements with 16 hotel management companies, including:
- Hilton Garden Inn
- Hampton
- Courtyard
- Residence Inn
- Homewood Suites
- SpringHill Suites
- Fairfield
- Home2 Suites
- TownePlace Suites
- AC Hotels
- Hyatt Place
- Marriott
- Embassy Suites
- Aloft
- Hyatt House
Apple Hospitality hotels are in various states, including Alaska, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Kansas, Louisiana, Michigan, and others.
Energy Transfer
Energy Transfer is one of North America’s largest and most diversified midstream energy companies. This top master limited partnership is a safe option for investors seeking energy exposure and income, as the company pays a substantial distribution. Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins.
The company is a publicly traded limited partnership with core operations that include:
- Complementary natural gas midstream, intrastate, and interstate transportation and storage assets
- Crude oil, natural gas liquids (NGL), and refined product transportation and terminalling assets
- NGL fractionation
- Various acquisition and marketing assets
Following the acquisition of Enable Partners in December 2021, Energy Transfer owns and operates over 114,000 miles of pipelines and related assets in 41 states, spanning all major U.S. producing regions and markets. This further solidifies its leadership position in the midstream sector.
Through its ownership of Energy Transfer Operating, L.P., formerly known as Energy Transfer Partners, L.P., the company also owns Lake Charles LNG Company, the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco LP (NYSE: SUN), and the public partner interests and 39.7 million standard units of USA Compression Partners, LP (NYSE: USAC).
Main Street Capital
Main Street Capital has helped over 200 private companies grow or transition by providing flexible private equity and debt capital solutions. This company is a favorite across Wall Street and offers a substantial dividend. Main Street Capital Corporation (NASDAQ: MAIN) is a private equity firm that provides equity capital to lower-middle market companies.
The firm also provides debt capital to middle-market companies for:
- Acquisitions
- Management buyouts
- Growth financings
- Recapitalizations
- Refinancing
The firm seeks to partner with entrepreneurs, business owners, and management teams, and generally provides “one-stop” financing alternatives within its lower middle-market portfolio.
Main Street Capital typically invests in lower-middle-market companies with annual revenues ranging from $10 million to $150 million.
The firm’s middle market debt investments are in businesses that are generally larger in size than its lower middle market portfolio companies. It also creates majority and minority equity.
Pfizer
Pfizer was established in 1849 in New York by two German entrepreneurs. This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes, but has been crushed over the last two years as many people have not received boosters. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It pays a dependable dividend, which has risen yearly for the last 14 years.
The company offers medicines and vaccines in various therapeutic areas, including:
- Cardiovascular, metabolic, and women’s health under the Premarin family and Eliquis brands
- Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
- Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands.
Pfizer also provides medicines and vaccines in various therapeutic areas, such as:
- Pneumococcal disease, meningococcal disease, and tick-borne encephalitis
- COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
- Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
- Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands
Pfizer anticipates full-year 2025 revenues in the range of $61.0 to $64.0 billion. This includes the expectation that revenues from COVID-19 products in 2025 will be broadly consistent with those in 2024, after excluding approximately $1.2 billion of non-recurring revenue for Paxlovid in 2024.
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