The recent inflation reading of 3% represents moderate price growth, which is above the Federal Reserve’s long-term target of 2% but well below the elevated rates seen in 2022 and early 2023. At this level, inflation indicates that the general price level of goods and services has increased by 3% compared to the same period a year earlier, affecting consumers’ purchasing power and potentially influencing central bank policy decisions. The 3% number came in below expectations of 3.1%, and many on Wall Street think this also opens the door to another rate cut in December, in addition to the one expected at the Federal Reserve meeting next week. Lowering the Fed Funds rate by 50 basis points over the rest of 2025 would cut the rate from the current 4%-4.25% to 3.50%-3.75%.
We decided to screen our 24/7 Wall St. blue-chip dividend stock database, looking for companies that yield 7% or more but are always forgotten by growth and income investors. Four stocks hit our screen, and once our readers realize they also have forgotten about them, it might be time to take a closer look. All are Buy-rated at top Wall Street banks.
Why do we cover high-yield dividend stocks?
High-yield dividend stocks offer investors a reliable source 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.
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 8.34% monthly dividend and stands out in the market with its unique offering.
The Company comprises 224 hotels with more than 30,066 guest rooms across 87 markets in 37 states, plus one property leased to third parties.
Its hotel 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.
Cantor Fitzgerald has an Overweight rating with a $14 target price.
Conagra Brands
Conagra manufactures and sells products under various brands in supermarkets, restaurants, and foodservice establishments. This is the ideal company for nervous investors, as it pays shareholders a substantial and secure 7.45% dividend that has risen with the stock price decline. However, the payout’s sustainability is supported by a payout ratio of about two-thirds of earnings. Conagra Brands, Inc. (NYSE: CAG) and its subsidiaries operate primarily as a consumer packaged goods food company in the United States.
The company operates through four segments:
- Grocery & Snacks
- Refrigerated & Frozen
- International
- Foodservice
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
Barclays has an Overweight rating with a target price of $26.
Enterprise Products Partners
Enterprise Products Partners is an American midstream natural gas and crude oil pipeline company headquartered in Houston, Texas. This company is one of the most extensive publicly traded energy partnerships, paying a very reliable 7.07% dividend. The company’s debt-to-EBITDA ratio ranges from 3.1x to 3.4x, which is moderate for a midstream energy company, and its interest coverage ratio is 5x. Enterprise Products Partners generates strong free cash flow, with an operating cash flow of approximately $8.8 billion, resulting in around $4.2 billion in free cash flow annually, after deducting capital expenditures. Another significant benefit for shareholders is that most of the corporate debt is fixed-rate, thereby limiting the risk of rising interest rates.
Enterprise Products Partners L.P. (NYSE: EPD) provides various midstream energy services, including:
- Gathering
- Processing
- Transporting and storing natural gas, natural gas liquids (NGL), and 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
One reason many analysts like the stock might be its distribution coverage ratio. The company’s coverage ratio is well above 1x, making it relatively less risky in the MLP sector.
JPMorgan has an Overweight rating with a $38 target price objective.
Telus
This is an off-the-radar Canadian telecommunications and tech company with excellent upside potential and a strong 10.5% dividend. Telus Corp (NYSE: TU) provides a range of telecommunications technology solutions, which include:
- Mobile and fixed voice and data telecommunications services and products
- Healthcare services
- Software and technology solutions
- Agriculture and consumer goods services, including software, data management, and data analytics-driven smart-food chain and consumer goods technologies, as well as digital experiences and related equipment.
Data services include Internet protocol, television, hosting, managed information technology, cloud-based services, and home and business security and automation.
TELUS Digital, a subsidiary of the Company, provides a portfolio of end-to-end, integrated capabilities, including:
- Digital solutions, such as cloud solutions and automation
- Trust, safety, and security services
- Artificial intelligence (AI) data solutions, including proficiency in computer vision, front-end digital design, and consulting services
Scotiabank has an Overweight rating and a U.S. dollar price target of $17.85.
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