Given the current economic uncertainty and concerns, it is a suitable time for investors to consider investing in high-yield dividend stocks. These dividend-paying stocks offer multifold advantages to investors through regular passive income, stability, and capital appreciation over time.
Against this backdrop, it could be wise to invest in high-dividend yield stocks Pfizer Inc. (PFE), Altria Group, Inc. (MO), and VICI Properties Inc. (VICI) to boost your portfolio in 2024.
The US economy’s real gross domestic product (GDP) expanded at an annual rate of 2.8% during the third quarter of 2024, lower than the economists’ estimate of 3.1%. Also, the growth was slower compared to the second quarter real GDP rate of 3.0%. Factors like increases in consumer spending, federal government spending, exports, and investment from businesses supported the economy.
Further, while slowing inflation and improving job market project a stable footing for the U.S. economy, rapidly changing fiscal policies and geopolitical uncertainties continue to linger around the economy’s growth. The Conference Board forecasts the economy to register a real GDP growth of 2.6% year-over-year in 2024.
During times of economic volatility and easing interest rates, dividend stocks emerge as an ideal investment, often outperforming the S&P 500 and offering some stability. Therefore, investing in high-yield dividend stocks can be a great investment strategy for now.
Considering the above economic trends, let’s delve into the fundamentals of the high-yield dividend stocks.
Pfizer Inc. (PFE)
PFE discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products internationally. The company provides medicines and vaccines in various therapeutic areas, like cardiovascular metabolic, migraine, and women's health, under the Eliquis, Nurtec ODT/Vydura, Zavzpret, and Premarin family brands.
On November 20, PFE received approval from the European Commission (EC) for HYMPAVZI™ for the routine prevention of bleeding episodes in patients 12 years of age and older weighing at least 35 kg with severe hemophilia A without FVIII inhibitors or severe hemophilia B without FIX inhibitors.
HYMPAVZI is the first and only anti-tissue factor pathway inhibitor approved by EC, and the approval will strengthen PFE’s position in the genetic disease treatment market.
On October 9, PFE’s board of directors declared a $0.42 fourth quarter 2024 dividend on its stock, which was paid on December 2, 2024, to holders of the common stock of record at the close of business on November 8, 2024.
PFE’s annual dividend of $1.68 translates to a yield of 6.57% at the current share price. Its four-year average dividend yield is 4.29%. Moreover, the company’s dividend payouts have increased at a CAGR of 4.3% over the past five years. PFE has raised its dividends for 14 consecutive years.
PFE’s total revenues for the third quarter that ended September 29, 2024, increased 31.2% year-over-year to $17.70 billion. The company’s adjusted net income and adjusted EPS attributable to PFE common shareholders totaled $6.05 billion and $1.06 for the quarter, respectively.
Buoyed by its strong quarter performance, PFE raised its full-year 2024 revenue guidance to a range of $61 billion to $64 billion. It has also raised its adjusted EPS guidance to a $2.75 to $2.95 range.
Analysts expect PFE’s revenue and EPS for the fourth quarter (ending December 2024) to grow 21.3 and 369.7% year-over-year to $17.28 billion and $0.47, respectively. Also, the company topped the consensus EPS estimates in each of the four trailing quarters.
Shares of PFE have plunged 9.9% over the past month to close the last trading session at $25.23.
PFE’s solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
PFE has an A grade for Growth. It also has a B grade for Value. It is ranked #30 out of 156 stocks in the Medical - Pharmaceuticals industry.
In addition to the POWR Ratings we’ve stated above, we also have PFE ratings for Momentum, Stability, Sentiment, and Quality. Get all PFE ratings here.
Altria Group, Inc. (MO)
MO is a manufacturer and seller of smokeable and oral tobacco products. It provides cigarettes mainly under the Marlboro brand, large cigars, and pipe tobacco under the Black & Mild brand, moist smokeless tobacco, and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands.
On August 22, MO declared a quarterly dividend of $1.02 per share, indicating an increase of 4.1% from the previous rate, paid to its shareholders on October 10. The company has increased its dividend based on its robust capital structure and ability to provide stable growth in the long run.
With 54 years of consecutive dividend growth, MO pays an annual dividend of $4.08, translating to a yield of 7.17% at the current share price. The company’s four-year average dividend yield is 7.98%. Also, its dividend payouts have increased at 4.4% CAGR over the past three years.
On June 21, MO received U.S. FDA authorization for the marketing of NJOY’s menthol e-vapor products. The marketing for the product is aimed at smoke-free alternatives to traditional adult smokers.
During the third quarter that ended September 30, 2024, MO reported net revenues of $6.26 billion, and its gross profit grew 2.9% from the prior year’s quarter to $3.81 billion. The company’s operating income of $3.15 billion reflects a 2% increase year-over-year.
Furthermore, the company’s adjusted net earnings came in at $2.36 billion or $1.38 per share, up 3.6% and 7.8% from the previous year's quarter, respectively.
The company reaffirmed its guidance to deliver 2024 full-year adjusted EPS in a range of $5.07 to $5.15, representing a growth rate of 2.5% to 4%.
Street expects MO’s revenue for the fourth quarter (ending December 2024) to increase marginally year-over-year to $5.05 billion. For the same quarter, its EPS is expected to grow 8.3% year-over-year to $1.28.
Over the past six months, MO’s stock has gained 20.5% and 32.8% over the past year to close the last trading session at $56.45.
MO’s solid prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has an A grade for Quality. Among the nine stocks in the B-rated Tobacco industry, MO is ranked #2.
Click here to access other ratings of MO for Value, Sentiment, Stability, Momentum, and Growth.
VICI Properties Inc. (VICI)
VICI is an S&P 500 experiential REIT that owns one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, consisting of Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas. It owns 93 experiential assets across a geographically diverse portfolio consisting of 54 gaming properties and 39 other experiential properties.
On September 5, VICI‘s Board of Directors declared a regular quarterly cash dividend of $0.43 per share of common stock for the third quarter, reflecting a 4.2% increase from the current dividend rate. The dividend was paid on October 3, 2024, to stockholders of record as of the close of business on September 18, 2024.
VICI pays an annual dividend of $1.73, which translates to a yield of 5.47% at the current share price. Its four-year average dividend yield is 4.91%. Moreover, the company’s dividend payouts have increased at a CAGR of 7.7% over the past five years. VICI has raised its dividends for five consecutive years.
For the third quarter that ended September 30, 2024, VICI’s total revenues increased 6.7% year-over-year to $964.67 million. Also, net income attributable to common shareholders came in at $732.90 million or $0.70 per common share, up 31.7% and 27.3% year-over-year, respectively.
In addition, AFFO attributable to common stockholders of $593.86 million and $0.57 per common share indicates growth of 8.4% and 5.6% from the prior year’s quarter, respectively. Its adjusted EBITDA rose 7.1% from the year-ago value to $777.99 million.
The company updated its guidance for the full year 2024. VICI now projects estimated adjusted funds from operations (AFFO) between $2.36 billion and $2.37 billion, or between $2.25 and $2.26 per common share.
Street expects VICI’s revenue for the first quarter (ending March 2025) to increase 2.1% year-over-year to $971.88 million, while its FFO is expected to grow 18.6% year-over-year to $0.68 respectively. Furthermore, the company surpassed the consensus revenue estimates in all of the trailing four quarters.
VICI’s stock has gained 10.7% over the past six months and 4% over the past year to close the last trading session at $31.77.
VICI’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
The stock has a B grade for Quality, Stability, and Sentiment. VICI has topped among the 16 stocks in the REITs - Hotel industry.
Click here to access VICI’s ratings for Growth, Value, and Momentum.
What To Do Next?
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PFE shares were trading at $25.52 per share on Thursday afternoon, up $0.29 (+1.15%). Year-to-date, PFE has declined -4.60%, versus a 29.18% rise in the benchmark S&P 500 index during the same period.
About the Author: Rjkumari Saxena
Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.
3 High-Yield Dividend Stocks to Boost Your Portfolio in 2024 StockNews.com
