If inflation and increasing interest rates are straining your budget, there are two solutions: reduce your expenses or increase your earnings. Investing in high-yield dividend stocks can provide a passive income stream. When combined with spending cuts, this can help restore balance to your budget quickly. That said, there are many dividend stocks to choose from, and it’s important to pick a portfolio of stocks that will produce steady returns over time.
Let’s dive into three high-yield dividend stocks perfect for long-term investors looking at buying in the second half of this year.
Devon Energy (DVN)
Devon Energy (NYSE:DVN) offers a compelling 9.57% dividend yield, attracting dividend investors seeking consistent cash flow or reinvestment opportunities. Despite its involvement in less productive fields, Devon maintains a strong position in these regions and expects its impressive operational performance to persist.
Devon Energy reported strong Q1 earnings with record-high oil production of 320,000 barrels per day. With anticipated oil price increases, the company expects improved margins and profitability. Aggressive share buybacks and increased dividends indicate management’s belief in the stock’s undervaluation. Analysts also have a bullish outlook, with a consensus price target of $63.96, representing a potential 45% gain.
Shares of DVN stock have been on the downtrend since the beginning of the year, largely due to falling oil prices. However, as the price of oil stabilizes, this company’s high yield, insider confidence reflected by CEO share purchases, and positive outlook are certainly enticing to long-term investors.
Realty Income (O)
Realty Income (NYSE:O), known as the “monthly dividend company,” offers income-focused investors a unique opportunity. With a strong portfolio of commercial properties and consistent occupancy rates, it provides a reliable monthly dividend stream. Despite challenges in the real estate sector, Realty Income remains a go-to option for investors seeking consistent income and potential capital appreciation, particularly in a rising interest-rate environment.
Realty Income provides stability and potential growth for income-focused investors. With a strong portfolio and consistent occupancy rates, the company delivers monthly dividends and has a remarkable track record of dividend increases. Adding Realty Income to a long-term portfolio can offer stability and consistent returns.
Realty Income offers monthly dividends to investors, supported by a strong portfolio and high occupancy rates. Its reliability and potential for capital appreciation make it an attractive option for income-focused investors. The company exceeded expectations and raised its guidance, with a 99% occupancy rate and a track record of 26 years of dividend growth. Realty Income proves to be a solid and successful choice.
Duke Energy (DUK)
Duke Energy (NYSE:DUK), headquartered in Charlotte, North Carolina, is one of the largest energy holding companies in the United States, boasting a significant electric generating capacity. While Duke’s performance this year has been lackluster, it remains one of the top dividend-paying large-cap stocks. With a market capitalization of nearly $71 billion, Duke benefits from its natural monopoly in the utility business due to the high barriers to entry for potential competitors.
Despite its financial metrics and operational performance being less impressive, Duke Energy remains a strong contender among defensive stocks. As a utility giant, Duke benefits from its natural monopoly, as the barriers to entry in the utility sector are high. Although Duke could improve its balance sheet, the company maintains consistent profitability. Additionally, it offers an attractive forward yield of 4.4%, surpassing the sector average. With 18 consecutive years of dividend increases, Duke is considered a reliable defensive stock. Analysts have a moderate buy consensus on DUK, with an average price target indicating a 22% upside potential.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
