10 Stocks You Can Buy Right Now With Dividend Yields of Over 4%
Have you ever received a check in the mail for an amount that was less than the cost of the stamp? The effort to send the check really wasn't worth the trouble.
In a similar vein, some stocks offer dividends that are so puny that they don't help investors much. However, there are others that definitely make a difference. Here are 10 such dividend stocks you can buy right now with yields of over 4%.
"En and in" -- energy and infrastructure
Energy stocks and infrastructure stocks tend to pay attractive dividends. These four especially stand out, in my view.
1. Brookfield Renewable
The demand for renewable energy will almost certainly increase significantly in the coming years. Brookfield Renewable (BEP 1.17%) (BEPC 0.86%) is preparing to meet that demand with a development pipeline capacity more than four times greater than its current operational capacity. The company's limited partnership shares (which trade under the BEP ticker) pay a dividend yield of nearly 4.6%, while its corporate entity shares (which trade under the BEPC ticker) offer a yield of close to 4.4%.
2. Cohen & Steer Infrastructure Fund
Technically, Cohen & Steers Infrastructure Fund (UTF 1.24%) isn't a dividend stock; it's a closed-end fund (CEF). However, it trades exactly as a stock does. The CEF also offers a convenient way to invest in a basket of infrastructure stocks. Best of all, its yield stands at 8.1%.
3. Devon Energy
Sure, Devon Energy's (DVN -0.12%) dividend could fluctuate somewhat. That's because the oil and gas company bases the variable portion of its dividend on how much excess free cash flow it generates. But Devon's dividend yield of nearly 9.5% looks really attractive. I don't expect its dividend to fall very much over the near term, if at all.
4. Enterprise Products Partners
Twenty-four years of consecutive distribution increases. Compound annual growth for those distributions of around 7%. And a yield of close to 7.5%. That's what you'll get by buying shares of Enterprise Products Partners (EPD -0.23%). The midstream energy company operates over 50,000 miles of pipelines that produce steady revenue regardless of what oil and gas prices are.
Follow the money
Remember the old adage, "It takes money to make money"? These companies have plenty of money to lend to borrowers -- and pay handsome dividends to income investors.
5. Ares Capital
Business development companies (BDCs) provide financing to small-to-medium-sized businesses. Ares Capital (ARCC -0.05%) ranks as the biggest publicly traded BDC. With its long track record of beating the market and its juicy dividend yield of nearly 10.3%, I'd argue that Ares Capital is also the best BDC stock out there.
6. M&T Bank
The failure of several U.S. banks has taken a steep toll on M&T Bank (MTB -0.36%) stock. However, that decline has pushed the bank's dividend yield to over 4.1%. Meanwhile, M&T's profits continue to grow. Its balance sheet looks solid. Once the dust settles from the banking crisis, I think the stock should rebound nicely.
To your health
Income investors can find many stocks to like in the healthcare sector. These two big pharmaceutical stocks rank among the best.
7. AbbVie
AbbVie (ABBV 1.13%) has increased its dividend for a remarkable 51 consecutive years. Its dividend yield currently stands at nearly 4.5%. Although the company faces some temporary headwinds as sales of its top-selling drug Humira decline, its long-term prospects remain good.
8. Pfizer
COVID-19 vaccine Comirnaty and antiviral therapy Paxlovid turbocharged Pfizer's (PFE 1.55%) revenue and profits over the last few years. While sales of these products are falling, Pfizer still expects to deliver solid growth throughout this decade thanks in large part to its new product launches and acquisitions. In the meantime, the drugmaker's dividend yields more than 4.5%.
Wireless winners
The demand for wireless services should grow with the broad adoption of 5G networks and the rise of the Internet of Things. Two great dividend payers should benefit from this trend.
9. Crown Castle
Crown Castle (CCI -0.12%) is a real estate investment trust (REIT) that owns cell towers and small cells (antennas on existing structures that provide wireless access in high-demand areas). Its dividend yield currently tops 5.5%.
10. Verizon Communications
Don't worry about Verizon Communications' (VZ 0.54%) declining free cash flow. The telecom giant should see its free cash flow improve significantly in the coming quarters as its capital spending declines. Income investors should be able to count on Verizon's attractive dividend, which yields 7.1% right now.
Source: The Motley Fool
