3 High-Yield Heavyweights to Anchor Your Portfolio for the Long Haul


  • Investors seeking stable and steady portfolio returns should keep an eye out for the best high-yield dividend stocks to buy.
  • Altria Group (MO): Clever rebranding and repositioning have allowed Altria to keep its dividend high for decades.
  • International Business Machines (IBM): A company at the center of the next technological revolution, IBM’s dividend could remain strong for a long time.
  • Nordic American Tankers (NAT): At a 10.93% dividend yield, NAT might just be one of the best long-term shipping plays available.
High-Yield Dividend Stocks to Buy - 3 High-Yield Heavyweights to Anchor Your Portfolio for the Long Haul

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When building a retirement portfolio, focusing on the best high-yield dividend stocks to buy can result in better long-term outcomes than timing the market. That’s because when a company offers both a high dividend yield and performs well year-over-year, the value of an investor’s position can compound rapidly. Luckily, record and dividend histories exist for all publicly traded companies in the U.S., which can help inform buying decisions.

Moreover, these high-yield dividend stocks can help hedge cash savings against inflation, as they are exceptional at maturing at a rate higher than the average 2% to 3% that the Federal Reserve aims for. Thus, for investors looking to use their money to make more money in the future, companies with a history of stable performance and upholding shareholder dividends are the way to go.

As such, here are three of the best high-yield dividend stocks to buy and continually re-invest earnings in for a bigger retirement account.

Altria Group (MO)

Altria Group, Inc. (MO) logo of US producer and marketer of tobacco and cigarettes is seen on a mobile phone screen.
Source: viewimage / Shutterstock.com

Though cigarettes may be going out of fashion, with some predicting they’ll be completely gone in 10 years, Altria Group (NYSE:MO) doesn’t seem to be burning out any time soon. On the contrary, the company has found several ways to change the narrative around its operations and become part of the push toward a smokeless future.

Altria is now rushing to make its NJOY e-cigarettes and ON! nicotine pouches more competitive to draw in customers who are accustomed to smoking. It is also working to expand its heated tobacco portfolio, which delivers a similar yet potentially less risky experience to smoking.

These efforts have enabled the company to confidently and consistently increase its dividend for 54 years straight, making it a member of the famed Dividend Kings. Up 11% year-to-date and offering an 8.77% dividend yield, MO stock is one of the best high-yield dividend stocks to buy now.

International Business Machines (IBM)

Photo of IBM (IBM) building as seen through the canopy of a tree. IBM logo is in large letters on side of building.
Source: shutterstock.com/LCV

From supercomputers to quantum mechanics and even nanotechnology, International Business Machines (NYSE:IBM) is a staple of the American technology industry. Over its lifetime, IBM stock has been one of the most stable and respected dividend-yielding stocks, and its reputation has stayed strong amid both artificial intelligence and quantum computing hype.

The company currently offers a 3.95% dividend yield, which is fairly generous in comparison to most major tech companies — some of which offer no dividend. It also currently trades at a 19.2x price-to-earnings ratio, which suggests IBM stock is potentially undervalued by the industry average of around 24.82x for information technology companies.

Furthermore, IBM has several high-potential irons in the fire, with highly developed quantum computing projects, artificial intelligence and several nanotechnology programs actively contributing to the advancement of science today. As such, IBM is certainly one of the best high-yield dividend stocks to buy and hold for the long term.

Nordic American Tankers (NAT)

Large tanker ship carrying natural gas at dusk in harbor
Source: shutterstock.com/Wojciech Wrzesien

Nordic American Tankers (NYSE:NAT) is a relatively new and expanding shipping company. Its tankers provide crude oil and petroleum transport to major energy companies and extraction wells across the world. As part of its operations, NAT operates 20 ships, all of the Suezmax classification, meaning they are the largest possible size that can cross the Suez Canal.

Currently, the company offers a whopping 10.93% dividend yield, which is exceptionally enticing for those looking for consistent percentage increases. Even better for investors, the company’s leadership recently reiterated that the long-term growth of its dividend and shareholder returns is its top priority.

Moreover, the company kicked off 2024 with healthy earnings. Its net profits for Q1 2024 of 2024 came in at $15.1 million, stemming from the company’s valuable tankers, which earned $34,320 per day per ship on average. Each ship in the NAT fleet undergoes vetting for performance and technical conditions by oil company boards. Above all else, NAT is exceptionally attractive, thanks to maintaining one of the lowest debt levels among publicly traded oil tanker companies, which keeps its cash flow less restricted.

On the date of publication, Viktor Zarev did not hold (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.

Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.

Article printed from InvestorPlace Media, https://investorplace.com/2024/06/3-high-yield-heavyweights-to-anchor-your-portfolio-for-the-long-haul/.

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