12 Best High-Yield Dividend Stocks To Buy Now

In this article, we will discuss 12 best high-yield dividend stocks to buy now.

One of the main aspects of investing in dividend stocks is the sheer focus on dividend yields. Investors prefer higher dividend yields to enhance returns on their investments and diversify portfolios. Ideally, dividend yields between 3% to 6% are considered healthy as they show the respective company’s sound financial condition. Moreover, high yields are also rewarding in times of economic clampdown. According to a report by JPMorgan Asset Management, high-yielding dividend stocks have been generally less volatile over the last 15 years. The report also mentioned that 135 companies in the US have yields above 3% with attractive valuations than the broader market.

High-dividend stocks have shown exceptional performance last year over other asset classes. In the US Total Cap space, these securities outperformed non-dividend payers by 39.6% in 2021, as reported by IHS Markit. The report also mentioned that the SPDR S&P Global Dividend Aristocrats ETF, which tracks the performance of high dividend-yielding equities, recorded $580 million in flows through July this year, compared with $236 million over the full year in 2021.

Dividend stocks like JPMorgan Chase & Co. (NYSE:JPM), Comcast Corporation (NASDAQ:CMCSA), and The Bank of New York Mellon Corporation (NYSE:BK) are on investors’ radars this year as they not only have high dividend yields but also hold strong dividend histories. Given this, we will discuss high-yield dividend stocks to buy now.

Image by Steve Buissinne from Pixabay

Our Methodology

The dividend stocks mentioned below have yields above 4% as of November 22. We examined these stocks through their dividend policies, financial health, and overall balance sheets. The stocks are ranked according to their dividend yields, as recorded on November 22.

Best High-Yield Dividend Stocks To Buy Now

12. Huntington Bancshares Incorporated (NASDAQ:HBAN)

Dividend Yield as of November 22: 4.11%

Huntington Bancshares Incorporated (NASDAQ:HBAN) is an Ohio-based commercial banking company that provides services related to mortgages, loans, and credit cards. In October, Stephens raised its price target on the stock to $16 with an Equal Weight rating on the shares, highlighting its deposit trends and current valuations.

In Q3 2022, Huntington Bancshares Incorporated (NASDAQ:HBAN) reported revenue of roughly $2 billion, which showed an 11.8% growth from the same period last year. The company’s pre-provision net revenue also grew 14% year-over-year to $867 million. Its average deposits grew by $1.0 billion from the prior-year period.

Huntington Bancshares Incorporated (NASDAQ:HBAN) currently pays a quarterly dividend of $0.155 per share. The company has been raising its dividends consistently for the past 11 years, which makes it one of the best dividend stocks on our list. It can be a good addition to dividend portfolios alongside major dividend stocks like JPMorgan Chase & Co. (NYSE:JPM), Comcast Corporation (NASDAQ:CMCSA), and The Bank of New York Mellon Corporation (NYSE:BK). As of November 22, the stock delivers a dividend yield of 4.11%.

As of the close of Q3 2022, 23 hedge funds tracked by Insider Monkey owned stakes in Huntington Bancshares Incorporated (NASDAQ:HBAN), the same as in the previous quarter. These stakes have a total value of over $168.3 million. Among these hedge funds, Citadel Investment Group was the company’s largest stakeholder in Q3.

11. OGE Energy Corp. (NYSE:OGE)

Dividend Yield as of November 22: 4.21%

OGE Energy Corp. (NYSE:OGE) is an Oklahoma-based public utility company that serves over 843,000 customers in the state. On September 27, the company announced a 1% hike in its quarterly dividend to $0.4141 per share. This was the company’s 15th consecutive year of dividend growth, which makes it one of the best dividend stocks. The stock has a dividend yield of 4.21% as of November 22.

In October, Guggenheim maintained a Buy rating on OGE Energy Corp. (NYSE:OGE), presenting a positive stance on the Power and Utility group due to higher interest rates.

OGE Energy Corp. (NYSE:OGE) reported a revenue of $1.27 billion in Q3 2022, which showed a 46.9% growth from the same period last year. The company also reported a 1.2% customer growth from the prior-year period. Its net income for the quarter came in at $253 million, compared with $223.8 million in Q3 2021.

At the end of Q3 2022, 16 hedge funds tracked by Insider Monkey owned stakes in OGE Energy Corp. (NYSE:OGE), up from 13 in the previous quarter. The collective value of these stakes is over $218.7 million. With over 2 million shares, Zimmer Partners was the company’s leading stakeholder in Q3.

10. Avista Corporation (NYSE:AVA)

Dividend Yield as of November 22: 4.43%

Avista Corporation (NYSE:AVA) is a Washington-based energy company that generates and transmits electricity and distributes natural gas to its consumers. In September, Mizuho raised its price target on the stock to $44 with a Buy rating on the shares, appreciating the company’s fundamentals and balance sheet.

On November 3, Avista Corporation (NYSE:AVA) declared a quarterly dividend of $0.44 per share, which fell in line with its previous dividend. The company is one of the best dividend stocks on our list as it has been raising its dividends consistently for the past 20 years. As of November 22, the stock has a dividend yield of 4.43%.

In Q3 2022, Avista Corporation (NYSE:AVA) reported a revenue of roughly $350 million, which showed a 21.9% growth from the same period last year. The company’s operating cash flow for the quarter came in at over $4.4 million.

As of the close of Q3 2022, 18 hedge funds in Insider Monkey’s database owned stakes in Avista Corporation (NYSE:AVA), the same as in the previous quarter. The collective value of these stakes is over $65.4 million.

9. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

Dividend Yield as of November 22: 4.65%

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is one of America’s largest pharmacy retail companies. In the September quarter, the company generated $32.4 billion in revenues, which beat Street estimates by $280 million. Its operating cash flow for the quarter came in at $85 million. Moreover, the company paid over $1.6 billion in dividends to shareholders, which places it as one of the best dividend stocks on our list.

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) has a 47-year history of consistently raising its dividends. The company pays a quarterly dividend of $0.48 per share and has a dividend yield of 4.65%, as of November 22.

In November, Cowen upgraded Walgreens Boots Alliance, Inc. (NASDAQ:WBA) to Outperform with a $54 price target, up from $43.

As of the end of the September quarter, 39 hedge funds tracked by Insider Monkey owned stakes in Walgreens Boots Alliance, Inc. (NASDAQ:WBA), compared with 40 in the previous quarter. These stakes are collectively worth over $712.6 million. Arrowstreet Capital owned roughly 6 million WBA shares, becoming the company’s largest stakeholder in Q3.

8. Philip Morris International Inc. (NYSE:PM)

Dividend Yield as of November 22: 5.24%

A New York-based multinational tobacco company, Philip Morris International Inc. (NYSE:PM) has been raising its dividends since it went public in 2008. One of the best dividend stocks on our list, Philip Morris International Inc. (NYSE:PM) currently pays a quarterly dividend of $1.27 per share with a dividend yield of 5.24%, as of November 22.

In November, Argus upgraded Philip Morris International Inc. (NYSE:PM) to Buy with a $115 price target, highlighting the company’s recent dividend hike. The firm mentioned that the company’s outlook is positive for the rest of the fiscal year.

In Q3 2022, Philip Morris International Inc. (NYSE:PM) posted an EPS of $1.53 and a revenue of $8.03 billion, beating estimates by $0.17 and $730 million, respectively. The company ended the quarter with $5.3 billion in cash and cash equivalents, up from $4.4 billion at the end of December 2021.

The number of hedge funds tracked by Insider Monkey owning positions in Philip Morris International Inc. (NYSE:PM) jumped to 63 in Q3 2022, from 56 in the previous quarter. These funds hold a collective stake value of over $4.68 billion.

Artisan Partners mentioned Philip Morris International Inc. (NYSE:PM) in its Q2 2022 investor letter. Here is what the firm has to say:

“On the positive side of the ledger, our top contributor was Swedish Match, a Swedish tobacco and nicotine products maker. The company received an all-cash takeover offer from rival Philip Morris International Inc. (NYSE:PM), which we also held in the portfolio, for SEK 106 per share—a 35% premium to Swedish Match’s prior closing share price. The deal is a good fit for PM as it reduces PM’s dependence on cigarettes—a category in steady decline—and accelerates the company’s transition to smokeless “reduced-risk” products (RRPs)—a category that has experienced rapid growth over the past five years. PM can also leverage its global scale to generate significant revenue synergies from these complementary product sets, as well as quickly gain access to the US market—the world’s largest market for RRPs and one where regulators have embraced RRPs and other less harmful nicotine products. We exited our position in Swedish Match as shares approached the takeout price.”

7. Medifast, Inc. (NYSE:MED)

Dividend Yield as of November 22: 5.47%

Medifast, Inc. (NYSE:MED) is a Maryland-based multi-level marketing company that sells weight loss and health-related products to its consumers. In September, DA Davidson added the company to its ‘high-conviction small cap ideas’ list as the firm expects the company to grow in the upcoming years due to its high yield and strong financials.

In the third quarter of 2022, Medifast, Inc. (NYSE:MED) reported a revenue of $390.4 million and its net income came in at $36.2 million. The company completed the $100 million Accelerated Share Repurchase program during the quarter. At the end of the quarter, it had over $69.7 million in cash and cash equivalents with zero debt.

Medifast, Inc. (NYSE:MED) started its dividend policy in 2015 and has raised its dividends every year since then. The company currently pays a quarterly dividend of $1.64 per share and has a dividend yield of 5.47%, as of November 22.

At the end of Q3 2022, 18 hedge funds tracked by Insider Monkey owned stakes in Medifast, Inc. (NYSE:MED), growing from 14 in the previous quarter. These stakes have a total value of over $120.1 million.

6. AT&T Inc. (NYSE:T)

Dividend Yield as of November 22: 5.86%

AT&T Inc. (NYSE:T) is one of America’s largest providers of cell phones and related services. AT&T Inc. (NYSE:T) is one of the best dividend stocks on our list as it has been raising its dividends consistently for the past 23 years. The company pays a quarterly dividend of $0.2775 per share and has a dividend yield of 5.86%, as recorded on November 22. It can be added to dividend portfolios alongside major dividend stocks like JPMorgan Chase & Co. (NYSE:JPM), Comcast Corporation (NASDAQ:CMCSA), and The Bank of New York Mellon Corporation (NYSE:BK).

Of the 920 hedge funds tracked by Insider Monkey, 61 funds owned stakes in AT&T Inc. (NYSE:T) in Q3 2022, up from 55 in the previous quarter. These stakes are worth $1.53 billion collectively.

Chartwell Investment Partners mentioned AT&T Inc. (NYSE:T) in its Q2 2022 investor letter. Here is what the firm has to say:

“In the Dividend Equity accounts, the three best performers in Q2 includes AT&T (NYSE:T, 2.5%), up 17.1%. AT&T completed the spin of the WarnerMedia business (HBO, CNN, etc.), and the market seemed to like the “back-to-basics” approach. Also, the telco business is expected to do relatively well in an inflationary environment.”

5. Kinder Morgan, Inc. (NYSE:KMI)

Dividend Yield as of November 22: 5.90%

Kinder Morgan, Inc. (NYSE:KMI) is a Texas-based energy infrastructure company that owns and controls oil and gas pipelines and terminals. In October, Barclays maintained an Equal Weight rating on the shares with a $20 price target, highlighting the company’s strong demand outlook.

In the third quarter of 2022, Kinder Morgan, Inc. (NYSE:KMI) reported a revenue of $5.18 billion, which showed a 35.6% growth from the same period last year. The company’s distributable cash flow came in at over $1.1 billion, compared with $1 billion in the prior-year quarter. Its adjusted earnings amounted to over $575 million, compared with $505 million in the third quarter of 2021.

On October 19, Kinder Morgan, Inc. (NYSE:KMI) declared a quarterly dividend of $0.2275 per share, in line with its previous dividend. The company is one of the best dividend stocks on our list as it has raised its payouts consistently for the past 5 years. As of November 22, the company’s shares boast a yield of 5.90%.

As of the end of Q3 2022, 38 hedge funds tracked by Insider Monkey owned stakes in Kinder Morgan, Inc. (NYSE:KMI), compared with 41 in the previous quarter. These stakes have a collective value of over $1.06 billion. Orbis Investment Management was the company’s leading stakeholder in Q3.

4. Verizon Communications Inc. (NYSE:VZ)

Dividend Yield as of November 22: 6.70%

Verizon Communications Inc. (NYSE:VZ) is an American multinational telecommunications company that provides wireless and broadband services to its consumers. The company has been raising its dividends for the past 16 years, coming through as one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.6526 per share and has a dividend yield of 6.70%, as of November 22.

In the third quarter of 2022, Verizon Communications Inc. (NYSE:VZ) reported a revenue of $34.2 billion, which showed a 4% growth from the same period last year. In the first nine months of the year, the company generated $28.2 billion and its free cash flow for the period came in at $12.4 billion.

Verizon Communications Inc. (NYSE:VZ) saw growth in hedge fund positions in Q3 2022, as 62 funds in Insider Monkey’s database owned stakes in the company, up from 58 in the previous quarter. The collective value of these stakes is over $1.42 billion.

Mawer Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q3 2022 investor letter. Here is what the firm has to say:

“There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon (NYSE:VZ) has been impacted as wireless operator is spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses.”

3. Devon Energy Corporation (NYSE:DVN)

Dividend Yield as of November 22: 7.35%

Devon Energy Corporation (NYSE:DVN) is an American energy company that is engaged in the exploration of hydrocarbons. In Q3 2022, the company’s revenue came in at $5.43 billion, which showed a 56.5% growth compared to the same period last year. It generated $2.1 billion in operating cash flow, up 32% from the prior-year period. The company’s cash flow for the quarter was recorded at $1.5 billion.

Argus raised its price target on Devon Energy Corporation (NYSE:DVN) to $90 and maintained a Buy rating on the shares, following the company’s Q3 earnings. The firm also appreciated the company’s strong balance sheet and substantial liquidity.

Devon Energy Corporation (NYSE:DVN) is one of the best dividend stocks on our list as it has paid regular dividends to shareholders for 29 years in a row. Its current quarterly dividend stands at $1.35 per share with a dividend yield of 7.35%, as of November 22.

Devon Energy Corporation (NYSE:DVN) was a part of 51 hedge fund portfolios in Q3 2022, according to Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $1.5 billion.

GoodHaven Capital Management mentioned Devon Energy Corporation (NYSE:DVN) in its Q2 2022 investor letter. Here is what the firm has to say:

“Our biggest dollar gainer within this period was Devon Energy Corporation (NYSE:DVN), a position which emanated from a takeover in early 2021 of our long time holding WPX Energy. We are sitting on a material (unrealized) gain from our cost and are now receiving material dividends thanks to Devon’s thoughtful fixed/variable dividend policy. Energy is now a hot sector for investors but we have had a material exposure for a long time. We remember a bit too well $40 oil, NEGATIVELY PRICED front-month oil contract, and what it’s like to own a company with leverage and negative free cash flow during such periods. Our desire to have our biggest portfolio exposures be high return, growing, reasonably predictable and moderately levered companies lead us to reduce our Devon exposure in the past. When the recent facts and circumstances for the industry changed and appeared supportive of healthy oil prices, we decided to maintain a sizable holding and more recently added to the position. At Devon’s Q1 dividend rate, which is mostly variable in nature, the shares now yield approximately 10% and our yield on our average cost is materially higher. In addition, we maintain additional energy exposure through our long-term (and successful) holding in Hess Midstream and less directly through TerraVest and Berkshire Hathaway’s energy investments.”

2. Magellan Midstream Partners, L.P. (NYSE:MMP)

Dividend Yield as of November 22: 7.92%

Magellan Midstream Partners, L.P. (NYSE:MMP) is an Oklahoma-based partnership that specializes in ammonia and petroleum pipelines in the Mid-continent oil province. In October, Barclays raised its price target on the stock to $55 with an Equal Weight rating, following the company’s third-quarter earnings.

In Q3 2022, Magellan Midstream Partners, L.P. (NYSE:MMP) reported a revenue of $876 million, up 37% from the same period last year. The company’s free cash flow for the quarter came in at $273 million, compared with $252 million in the prior-year period. Its free cash flow was enough to fulfill its shareholder obligation.

On October 20, Magellan Midstream Partners, L.P. (NYSE:MMP) announced a 1% hike in its quarterly dividend to $1.0475 per share. This was the company’s 21st consecutive year of dividend growth, which makes it one of the best dividend stocks to buy now. The stock has a dividend yield of 7.92%, as recorded on November 22.

At the end of Q3 2022, 10 hedge funds tracked by Insider Monkey owned stakes in Magellan Midstream Partners, L.P. (NYSE:MMP), up from 9 in the previous quarter. The collective value of these stakes is over $20.2 million. With 1.6 million shares, First Eagle Investment Management was the company’s leading stakeholder in Q3.

1. Claros Mortgage Trust, Inc. (NYSE:CMTG)

Dividend Yield as of November 22: 8.29%

Claros Mortgage Trust, Inc. (NYSE:CMTG) is a real estate investment trust company that specializes in senior and subordinate loans on commercial real estate. In Q3 2022, the company reported $878 million of total loan commitments across its six investments. It also funded nearly $186 million of follow-on funding related to the existing loan portfolio.

Claros Mortgage Trust, Inc. (NYSE:CMTG) started paying dividends in December 2021 and currently pays a quarterly dividend of $0.37 per share. The stock’s dividend yield on November 22 came in at 8.29%.

The number of hedge funds tracked by Insider Monkey owning stakes in Claros Mortgage Trust, Inc. (NYSE:CMTG) grew to 8 in Q3 2022, from 4 in the previous quarter. The collective value of these stakes is over $15 million.

You can also take a look at 14 Best Blue Chip Dividend Stocks to Buy and 15 Best Consistent Dividend Stocks to Buy.

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Disclosure. None. 12 Best High-Yield Dividend Stocks To Buy Now is originally published on Insider Monkey.