19 High Dividend Stocks With 5%+ Yields

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Investing for income is a difficult task right now. The Federal Reserve has kept interest rates at zero since the coronavirus pandemic, leading to lower yields across fixed income. Stocks aren’t much better, as record-high share prices has reduced the average dividend yield of the S&P 500 Index to just 1.3%.

But income investors can still find high dividend stocks with strong yields and secure payouts. These 19 high-yield stocks have attractive yields above 5%.

High Dividend Stock #1: Chevron Corporation (CVX)

Chevron is a well-known dividend growth stock, as it is on the prestigious Dividend Aristocrats list

The company has increased its dividend for over 30 years in a row. Chevron is an integrated super-major, with large upstream (exploration and production) and downstream (refining and marketing) segments.

In the 2021 second quarter, Chevron grew its production 4.6% over the prior year’s quarter. The average realized price of oil of Chevron essentially tripled over last year’s quarter and thus Chevron switched from an adjusted loss of -$1.56 per share to an adjusted profit of $1.71 per share. 

Thanks to the strong recovery of the oil price and the improved outlook for refining margins, Chevron raised its dividend by 3.9% this year. Shares currently yield 5.4%.

High Dividend Stock #2: Altria Group (MO)

Altria Group is a legendary dividend stock. It has increased its dividend for over 50 years, making the stock a Dividend King

The company manufactures tobacco products including the Marlboro cigarette brand in the U.S., as well as chewing tobacco and cigars. 

In response to the long-running trend of declining smoking rates in the U.S., Altria has invested heavily in adjacent categories for growth. Altria purchased a 55% equity stake in Canadian marijuana producer Cronos Group, invested nearly $13 billion for a 35% equity stake in e-vapor manufacturer Juul Labs, and the company owns 10% of Anheuser-Busch InBev (BUD). 

Altria will also continue to expand its own heated tobacco products, IQOS and Marlboro HeatSticks, in 2021. Shares currently yield 7.1%.

High Dividend Stock #3: Exxon Mobil (XOM)

Like Chevron, Exxon Mobil is also a Dividend Aristocrat and is a global energy super-major. 

In the second quarter, Exxon’s production in the Permian grew 34% over last year’s quarter but total production dipped -2% due to maintenance activity. However, the chemical segment posted record earnings of $2.3 billion thanks to high margins. 

In addition, the upstream segment thrived thanks to the rally of the price of oil, which resulted from the deep production cuts of OPEC and Russia and the recovery from the pandemic. As a result, Exxon switched from an adjusted loss of -$0.70 per share in last year’s quarter to an adjusted profit of $1.10 per share.

Exxon Mobil stock yields 6.3%.

High Dividend Stock #4: AT&T Inc. (T)

AT&T is a telecom giant with a 7.4% dividend yield. AT&T is a telecommunications giant, as its core Communications segment provides mobile, broadband, and video to 100 million U.S. consumers and 3 million businesses.

In the 2021 second quarter, AT&T generated a 7% growth in revenue and adjusted earnings-per-share. 

AT&T has announced a deal to combine WarnerMedia with Discovery, Inc. (DISCA) to create a new global entertainment company. AT&T will receive $43 billion in a combination of cash, securities, and retention of debt. 

We believe these various deals with allow AT&T to simplify its operations, become more efficient, and return to its core focus on telecom services such as 5G rollout.

High Dividend Stock #5: Enterprise Products Partners LP (EPD)

Enterprise Products Partners is a premier MLP with a huge network of assets that includes 50,000 miles of natural gas, natural gas liquids, crude oil, and refined products pipelines. It also has storage capacity of more than 250 million barrels. 

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Disclaimer: This article originally appeared on The Financially Independent Millennial ...

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