42 views 6 mins 0 comments

3 Dividend Stocks You May Want To Double Down On

In Business
June 04, 2024
3 Dividend Stocks You May Want To Double Down On

3 Dividend Stocks You May Want To Double Down On

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Sometimes, misunderstood stocks benefit investors. Savvy investors can capitalize when a stock is incorrectly perceived as weak during a recession.

Several high-yield dividend stocks currently fall into this category. Here, we’ll look at three worth considering for investment.

AbbVie 

With biosimilar competition driving sales down, AbbVie’s (NYSE:ABBV) blockbuster drug Humira has seen better days. In Q1 2024, this decline resulted in a year-over-year drop in adjusted earnings per share (EPS) and stagnant total revenue.

Driven by Skyrizi and Rinvoq, successors to Humira, the company is poised for significant growth. Additionally, migraine medications Ubrelvy and Qulipta are gaining popularity and the oncology portfolio including Venclexta, Elahere, and Epkinly, shows encouraging strength.

During the Q1 results call, Rob Michael, AbbVie’s COO and president, who will take over as CEO in July, expressed optimism, saying, “AbbVie is well-positioned to deliver a high-single-digit revenue CAGR [compound annual growth rate] through the end of the decade.”

The board of AbbVie overwhelmingly approved Michael’s elevation to CEO, succeeding Rick Gonzalez, who will serve as executive chairman.

AbbVie’s prospective dividend yield of around 4% appeals to income-oriented investors. The Dividend King company boasts 52 consecutive years of dividend growth. Three industry experts have recently suggested an average target price of $189.0 for AbbVie.

Chevron

Major oil companies like Chevron face existential risks as concerns about climate change drive a global shift from fossil fuels to renewable energy.

In Q1 2024, Chevron’s (NYSE:CVX) output increased by 12% year-over-year. The company expects continuous upstream expansion through at least 2027 and is funding several significant initiatives to increase capacity. An industry executive projects an oil supply shortfall by late 2025, greatly benefiting Chevron.

Chevron is also emphasizing sustainability to balance its bets. Within the next four years, the company aims to reduce its carbon dioxide emissions in upstream operations by 35%. It primarily funds carbon capture technology, hydrogen, and renewable energy. These developments aim to minimize the environmental impact of oil and gas extraction.

Chevron remains a favorite among income investors, with a dividend yield of 4.1%. With 37 consecutive years of increasing dividend payouts, Chevron will likely continue this streak.

Pfizer

Once-booming COVID-19 vaccination sales have declined, impacting Pfizer’s (NYSE:PFE) overall income and profits.

Despite challenges, Pfizer boasts a significant product line and a clear strategy. The company expects that newly authorized indications for current products and new medicines will generate enough income to balance and surpass the impact of the patent cliff.

Using funds acquired during the height of the COVID-19 epidemic, Pfizer has strategically acquired smaller pharmaceutical companies.

In 2022, the company acquired Arena, Biohaven, Global Blood Therapeutics, ReViral, and Seagen. By 2030, these acquisitions and other future agreements are expected to generate nearly $25 billion in new annual income.

Pfizer is on the path to profit, offering an attractive forward dividend yield of more than 5.9%. In its Q1 update, the company emphasized its commitment to maintaining and increasing its dividend while reducing debt and reinvesting in the business.

Looking For Higher-Yield Opportunities?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider.

For instance, Basecamp Alpine Notes offers a target APY of 9% with a term of only three months, making it a powerful short-term cash management tool with incredible flexibility. EquityMultiple has issued 61 Alpine Notes Series and has met all payment and funding obligations with no missed or late interest payments. With a low minimum investment of just $1,000, Basecamp Alpine Notes makes it easier than ever to start building a high-yield portfolio. 

Don’t miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga’s favorite high-yield offerings.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

This article 3 Dividend Stocks You May Want To Double Down On originally appeared on Benzinga.com

EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel210520-twitter-verified-cs-70cdee.jpg (1500×750)

Support Independent Journalism with a donation (Paypal, BTC, USDT, ETH)
whatsapp channel
Avatar
/ Published posts: 31045

The latest news from the News Agencies