2 High-Yield Dividend Stocks Yielding Over 6% That’ll Pay You to Wait

By Joey Frenette Published Apr 5, 9:18AM EDT

Quick Read

General Mills (GIS) and Energy Transfer (ET) offer dividend yields above 6% as defensive plays during volatile markets and potential inflation, with GIS trading at 9.15x P/E and ET at 15.6x P/E. General Mills is working on health and wellness product innovation to address consumer pressures, while Energy Transfer benefits from AI data center demand and maintains safe dividend coverage despite debt levels.
Rising transport costs from geopolitical tensions threaten consumer spending power, making high-dividend stocks attractive for investors seeking steady income through an expected prolonged period of volatility and inflationary headwinds.

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2 High-Yield Dividend Stocks Yielding Over 6% That’ll Pay You to Wait — © Wolterk / iStock Editorial via Getty Images

As volatility intensifies and capital gains turn into losses for some, it might be time to consider the cheap, unloved dividend stocks that will pay you to hold through what could be a second quarter that sees more of the same. Undoubtedly, there were high hopes that the Iran war would end sooner this week. Now, it’s looking like the crisis might last for a while longer, as firms look to pass on higher transport prices to consumers.

With inflation poised to make an untimely comeback, the case for going big on dividends, I think, is strengthened. In this piece, we’ll look at two higher-yielders (6% yields or more) that stand out as great bets while risk and volatility stay elevated over the foreseeable future.

General Mills

General Mills (NYSE:GIS | GIS Price Prediction) shares have really cratered in the past three years or so, with shares now down close to 59% from their 2023 all-time highs. The fall from glory has caused the dividend yield to swell above 6.5%. And while there’s no shortage of problems for the ailing consumer-packaged goods company as it stumbles en route to its hopeful turnaround, I do think that the name is oversold enough such that the risks might actually be the lowest they’ve been in a while, even though it seems like the opposite is true.

The stock goes for 9.15 times trailing price-to-earnings (P/E), which bakes in a lot going wrong. As the energy shock causes higher transport costs and, with that, more inflation at a time when headwinds are already heightened, it seems like things can only get worse through 2026. The consumer is in a tough spot, and it’s about to get even worse.

With the outlook cut earlier in the year and the potential for another one if the Iran conflict doesn’t resolve soon, it’s not easy to be a bull on any hard-hit consumer packaged goods plays, no matter how cherished the brands. While management can’t control the macro, it can make moves to better position the firm for a climate where inflation and other pressures are off consumers’ shoulders. Most notably, General Mills is hoping to drive sales through some intriguing new products.

Of course, it’s going to take more than a few new flavors of cereal to get consumers to spend in that deserted middle aisle of the grocery store. The company must double down on the health and wellness trend if it’s to convince shoppers to load up their carts or go out of their way to search for a specific product.

With a better-for-you line of products and rising demand for high-protein options, there’s certainly an opportunity for General Mills to turn a corner. If the firm can make its lineup healthier, more protein-rich, and tastier, I see a scenario where General Mills could begin a comeback, even at a time like this, when inflationary pressures loom.

Energy Transfer

Energy Transfer (NYSE:ET) seems to be a sleep-easier name to buy, with shares now up 135% in five years, with a 0.65 beta and a 6.96% yield. Of course, the midstream operators might not have as much torque when oil prices rise. But for those seeking stability and, most importantly, high yields and dividend raises, I see the pipelines as standout bets.

The AI data center tailwind is alive and well, and with guidance recently coming in on the higher end, there’s every reason to believe that the pipeline darling will keep paying rising dividends for years to come. Of course, the firm is spending quite a bit on growth projects and with a considerable amount of debt, there could be rising concerns if interest rates march higher from here to stomp out any rise of inflation.

If you can look past the $69 billion long-term debt load, I do think the CapEx plan will, in due time, pay off, as the firm does its part to alleviate bottlenecks in the Permian basin. For now, the dividend looks safe and sound, given the plentiful cash flows. For long-term holders, expect low single-digit dividend hikes in the 3-5% ballpark. On such a massive yield, that’s a gift that keeps on giving.

Finally, at 15.6 times trailing P/E, the stock looks mildly valued, given its ability to power through what could be a turbulent and inflationary year.

About the Author Joey Frenette →

Joey is a 24/7 Wall St. contributor and seasoned investment writer whose work can also be found in publications such as The Motley Fool and TipRanks. Holding a B.A.Sc in Computer Engineering from the University of British Columbia (UBC), Joey has leveraged his technical background to provide insightful stock analyses to readers.

Joey's investment philosophy is heavily influenced by Warren Buffett's value investing principles. As a dedicated Buffett disciple, Joey is committed to unearthing value in the tech sector and beyond.