Three High-Yield Dividend Stocks to Consider in 2024
Income investors are always on the lookout for high dividend yields, but often at the cost of significant risk or low growth prospects. Three Motley Fool contributors have identified three high-yield dividend stocks that offer both stability and growth potential. These stocks include AbbVie (NYSE:ABBV), Bristol Myers Squibb (NYSE:BMY), and Pfizer (NYSE:PFE).
AbbVie has faced challenges with the expiration of its blockbuster drug Humira’s patent protection in the US last year. This setback, the company has continued to increase its dividend payouts and is now in its 52nd consecutive year of dividend increases. Management remains confident in the company’s ability to support its dividend program, thanks to its other immunology therapies and a diverse product lineup. Additionally, The firm’s strong pipeline of new products provides further growth potential. With a dividend yield of 3.88%, well above the S&P 500’s average, and a conservative payout ratio of 42%, AbbVie remains a top income stock for 2024 and beyond.
Bristol Myers Squibb had a tough year in 2023, with its share price falling 29%. This growth-oriented company has the potential to be a great long-term investment, with an impressive dividend yield of 4.6%. The company has a track record of consistently increasing its dividend for 15 years and has paid a dividend for 92 consecutive years. Facing challenges such as a high debt load and multiple patent cliffs, the company remains a strong dividend stock. With a low valuation of just seven times its estimated future profits and a strong pipeline of new products, this company offers both stability and growth potential for investors.
Pfizer is another pharmaceutical company that offers a high dividend yield of 3.54%. The company has a strong track record of increasing its dividend for 11 consecutive years and has a conservative payout ratio of 46%. Pfizer’s diverse product lineup, including its COVID-19 vaccine, provides stability and growth potential for the company. Additionally, Pfizer’s recent acquisition of Array BioPharma and its strong pipeline of new products further solidify its position as a top dividend stock for income investors.
AbbVie, Bristol Myers Squibb, and Pfizer are three high-yield dividend stocks worth considering.
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