While active acquisition is perhaps the most common methodology of gaining wealth, it’s not always the most efficient. For example, even if you trade your hours for a generous paycheck, there are only so many hours available: in a day, in a week, in a month, you get the idea. So, you need to find a way to have your money make money, which is where high-yield dividend stocks come into play.
When participating in the equities space, it’s generally a good idea to have exposure to passive-income-providing enterprises. Your stable blue chips provide a frequent flow of income (typically on a quarterly basis). Space out your high-yield dividend stocks by their payment dates and you can potentially enjoy robust yields every month. This may allow you to pay your bills.
Best of all, passive income is, well, passive. You don’t have to do anything to get the payout (so long as the company remains consistently profitable). With that in mind, below are high-yield dividend stocks to consider.
PepsiCo (PEP)
One of the world’s biggest beverage and snack product manufacturers, PepsiCo (NASDAQ:PEP) makes a great case for high-yield dividend stocks. For sure, soft drinks and potato chips aren’t exactly riveting products. However, they benefit from consistent, everyday demand. Further, with inflation impacting consumer spending, people are likelier to get their calories from the grocery aisles. That favors Pepsi’s core business.
What’s attractive about the company is that in the past four quarters, PepsiCo posted an average earnings per share of $1.95. This didn’t scorch the analysts’ estimates, which came in at $1.86. Still, a beat is a beat. Further, the average earnings surprise came out to 4.83%.
In the trailing 12 months (TTM), PepsiCo posted EPS of $6.89 on sales of $92.05 billion. For fiscal 2024, experts anticipate earnings of $8.16 per share, up 15.42% from last year. Also, sales could hit $94.07 billion, up 10.8%.
Lastly, the company offers a forward yield of 3.26%. While the payout ratio is a bit elevated at 74.75%, the consistency and predictability of the business makes PEP a compelling opportunity.
AbbVie (ABBV)
A top-tier player in the drug manufacturing industry, AbbVie (NYSE:ABBV) commands significant relevancies. Its main product is Humira, which is an injection for autoimmune disorders and other conditions. It has also developed advanced therapeutic candidates to treat vexing ailments such as Parkinson’s disease. AbbVie is recognized the world over for its oncology portfolio, making ABBV a formidable play among high-yield dividend stocks.
Financially, it’s not a remarkable enterprise. However, in the past four quarters, the company beat all of its bottom-line targets. The average EPS came out to $2.74, pipping the collective consensus view of $2.67. Overall, the average earnings surprise landed at 2.75%.
In the TTM period, AbbVie posted EPS of $3.35 on revenue of $54.4 billion. For fiscal 2024, experts anticipate a modest dip in earnings in $10.80 per share. However, revenue rise modestly to $55.21 billion, an increase of 1.6%.
In terms of passive income, AbbVie offers a forward yield of 3.69%. Admittedly, the payout ratio is sky high so it’s something to monitor. Still, for the various therapeutics on tap, ABBV is an intriguing candidate for high-yield dividend stocks.
Shell (SHEL)
One of the world’s top supermajors, Shell (NYSE:SHEL) is a giant within the integrated oil and gas industry. This means that the company is involved in multiple segments of the hydrocarbon value chain. What may draw investors’ attention toward SHEL stock is the latest political dynamic. With former President Donald Trump poised for an easy electoral victory, fossil fuels seem compelling.
Republicans are well known for supporting the hydrocarbon industry. It’s also possible that a second Trump administration can roll back some of President Joe Biden’s climate-forward initiatives. To be sure, the oil market has been a choppy one, with Shell missing its earnings target in Q2 2023. However, in the past year since Q1 2024, its average EPS came out to $1.98, beating out the consensus $1.77.
In the TTM period, Shell posted EPS of $5.46 on sales of $302.14 billion. In fiscal 2024, analysts are targeting EPS of $8.40, implying modest growth of 1.1%. Sales may see a slight bump to $322.19 billion, up 1.8%.
The forward yield is quite robust, though, at 3.77%. With a modest payout ratio of 47.38%, Shell is one of the high-yield dividend stocks to buy.
Philip Morris (PM)
One of the world’s tobacco giants, Philip Morris (NYSE:PM) might seem awfully anachronistic. After all, global smoking prevalence rates have been declining. Still, what keeps PM in business is that the concept of adult liberties will likely never fade permanently. Consumers have different ways of handling stress. Also, some folks enjoy certain practices.
However, where PM stock may really come alive over the next several years is in its alternative products: vaporizers, e-cigarettes, heat-not-burn devices. Whatever you want to call them, tobacco firms are building them. For the most part, Philip Morris is resonating with its consumer base. In the past four quarters, it managed to post an average EPS of $1.53. This performance beat out the collective consensus view of $1.49.
During the TTM period, the tobacco firm posted EPS of $5.12 on revenue of $35.95 billion. By the end of the fiscal year, experts believe EPS could rise 5.16% to $6.32. On the top line, sales may see an increase of 5.2% to $37.07 billion.
Finally, Philip Morris brings a forward yield of 4.91% to the table. It’s one of the high-yield dividend stocks to consider.
Vici Properties (VICI)
Based in New York City, Vici Properties (NYSE:VICI) falls under the diversified real estate investment trust (or REIT) industry. Per its public profile, Vici owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations. While the entity represents one of the higher-risk ideas among high-yield dividend stocks, it’s also intriguing. That’s because Vici could benefit from the travel prioritization trend.
Following off the back of the revenge travel concept, consumers are not as acutely eager to get out of the house. However, families are still prioritizing their discretionary budget to fit in vacation time. It’s possible that the Covid-19 crisis taught everyone that life is short. Unfortunately, Vici hasn’t consistently benefited from this potential catalyst.
In the past four quarters, it posted an average EPS of 63 cents. However, this slightly missed the target of 64 cents, resulting in a negative earnings surprise of 1%. Still, analysts do see a recovery in EPS to $2.55, up 3.24% from last year. Also, sales may rise 5.7% to $3.82 billion.
Vici carries a forward yield of 5.48% and a relatively reasonable payout ratio of 64.88%.
LyondellBasell (LYB)
Falling under the basic materials sector, LyondellBasell (NYSE:LYB) focuses on specialty chemicals. Primarily, the company operates in the U.S. However, it also features facilities in diverse regions such as Germany, Mexico, Italy and Poland, among many others. Its products are essential for multiple industries, including food packaging, automotive components and hydrocarbon production.
So long as the machinery of the global economy keeps moving forward, LYB stock should benefit from steady business flow. Sure enough, in the past four quarters, LyondellBasell posted an average EPS of $1.96. This easily beat the collective consensus view of $1.75 or an earnings surprise of 11.7%.
In the TTM period, LyondellBasell posted EPS of $6.48 on sales of $40.78 billion. For fiscal 2024, EPS could see a modest dip to $8.29. Revenue may stay roughly the same at $41.17 billion, though the high-side estimate calls for $43.16 billion.
Regarding passive income, the company posted a forward yield of 5.6%. While the payout ratio is a bit high at 77.16%, the relevance of the business makes LYB reasonably safe. Thus, it’s one of the high-yield dividend stocks to consider.
Healthpeak Properties (DOC)
Headquartered in Denver, Colorado, Healthpeak Properties (NYSE:DOC) is a fully integrated REIT as well as an S&P 500 company. As you might imagine from the corporate label, the entity owns, operates and develops high-quality real estate for healthcare discovery and delivery. Fundamentally, what may benefit DOC stock is the permanence of the underlying narrative. Irrespective of economic conditions, people will still seek personal care.
To be fair, the financials for this REIT have been choppy. In the past year since Q1, Healthpeak posted an average EPS of 9 cents. This matched the collective consensus view but that’s not the whole story. In terms of earnings surprise, Healthpeak actually slipped almost 6% below parity. Big misses in Q2 2023 and especially Q1 hurt the overall picture.
During the TTM period, the REIT posted EPS of 35 cents on sales of $2.26 billion. By year’s end, EPS could reach 38 cents. However, that would be a 32.14% loss from the prior year. That’s not great. However, revenue may rise almost 20% to $2.61 billion. As well, earnings could improve in fiscal 2025.
Healthpeak offers a forward yield of 5.81%, making it an attractive idea for high-yield dividend stocks to speculate on.
On the date of publication, Josh Enomoto 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.
