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12 Best High-Yield Dividend Stocks To Buy Now

In this article, we will discuss 12 best high-yield dividend stocks to buy now. You can skip our detailed analysis of high-dividend stocks and their performance over the years, and go directly to read 5 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.”

Click to continue reading and see 5 Best High-Yield Dividend Stocks To Buy Now

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

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