In this article, we discuss 11 best high-dividend stocks to buy now. You can skip our detailed analysis of dividend stocks and their performance in the past, and go directly to read 5 Best High-Dividend Stocks to Buy Now.
In Lowell Miller's book, Single Best Investment, he referenced a study by J. Grant in the Journal of Portfolio Management (Winter 1995). According to Grant's findings in the article titled A Yield Effect in Common Stock Returns, high dividend-yielding stocks, whether from small or large firms, outperformed other equity investments during the thirteen-year period until December 1992. The study suggested that portfolios with high yields not only earned above-average rewards but also exhibited relatively low return standard deviation during that timeframe. In addition to high dividend yields, Miller also emphasized the importance of consistent dividend growth. Here is what the author said:
“We are working with a very simple idea that happens to be loaded with common sense: if a company that offers a high dividend yield is able to continuously increase that dividend, it seems clear that the company must be making more and more money, and that a shareholding “partner” in the company will benefit from the steady growth of the business. More specifically, as the dividend rises the stock price will also rise, giving the investor a gain “on both ends,” with both rising income and rising stock prices.”
Looking at more recent findings, it's evident that high dividend-yielding stocks continue to be relevant. A 2020 research paper from the Centre for Endowment Asset Management and the University of North Carolina supports this notion, concluding that investing in portfolios with higher yields provides superior returns for investors. The study, spanning almost a century from July 1928 to June 2019 in the US market, revealed that high-dividend yield portfolios outperformed both low and zero-dividend yield portfolios on a value-weighted basis. Specifically, they outperformed low-yield portfolios by 199 basis points (bps) and zero-yield portfolios by 330 bps. The report by Newton Investment Management highlighted that stocks exhibiting high dividend yields demonstrated a notable outperformance compared to the broader market during periods characterized by high inflation, spanning the years 1940 to 2021. This observation underscores the potential resilience and attractiveness of high dividend-yielding stocks in the face of economic challenges associated with inflation.
Broadcom Inc. (NASDAQ:AVGO), International Business Machines Corporation (NYSE:IBM), and Verizon Communications Inc. (NYSE:VZ) are some of the best dividend stocks, characterized by both high yields and robust dividend track records. These companies not only offer above-average dividend yields, providing attractive returns to investors, but they also have established a history of consistently maintaining and even increasing their dividend payouts over time. In this article, we will take a look at some more dividend stocks with high dividend yields.
11 Best High-Dividend Stocks to Buy Now
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Our Methodology:
For this article, we screened for dividend stocks with yields over 8% as of November 14. While extremely high yields can be risky, we made sure to pick companies from the list that have a reliable history of paying steady dividends. The stocks are ranked in ascending order of their dividend yields, as recorded on November 14.
Lincoln National Corporation (NYSE:LNC) is a diversified financial services company that operates multiple business segments, including life insurance, annuities, retirement plan services, and group protection. On November 9, the company declared a quarterly dividend of $0.45 per share, which was in line with its previous dividend. It is one of the best dividend stocks on our list as the company has been paying regular dividends to shareholders since 1989. The stock's dividend yield on November 14 came in at 8.02%.
LNC can be added to dividend portfolios alongside some other high-yielding dividend stocks, such as Broadcom Inc. (NASDAQ:AVGO), International Business Machines Corporation (NYSE:IBM), and Verizon Communications Inc. (NYSE:VZ)
At the end of Q2 2023, 30 hedge funds tracked by Insider Monkey reported having stakes in Lincoln National Corporation (NYSE:LNC), up from 26 in the previous quarter. The consolidated value of these stakes is over $211.6 million. With over 1.6 million shares, D E Shaw was the company's leading stakeholder in Q2.
Nu Skin Enterprises, Inc. (NYSE:NUS) is a Utah-based company that operates in the direct selling and multi-level marketing industry. The company is known for offering a variety of personal care products and dietary supplements. In the third quarter of 2023, it reported revenue of $498.8 million, which fell by 7.3% from the same period last year. The company ended the quarter with over $233.3 million available in cash and cash equivalents. During the quarter, it returned approximately $19.5 million to shareholders through dividends.
Nu Skin Enterprises, Inc. (NYSE:NUS), one of the best dividend stocks, has been growing its dividends consistently for the past 22 years. The company currently offers a quarterly dividend of $0.39 per share and has a dividend yield of 8.09%, as of November 14.
The number of hedge funds tracked by Insider Monkey owning stakes in Nu Skin Enterprises, Inc. (NYSE:NUS) jumped to 18 in Q2 2023, from 11 in the previous quarter. The collective value of these stakes is roughly $65 million.
TFS Financial Corporation (NASDAQ:TFSL) is an American financial services company that primarily operates as a savings and loan association. This means that it engages in traditional savings and lending activities. The company's quarterly dividend stands at $0.2825 per share for a dividend yield of 8.57%, as of November 14. With a 9-year run of paying regular dividends to shareholders, TFSL is one of the best dividend stocks on our list.
In fiscal Q4 2023, TFS Financial Corporation (NASDAQ:TFSL) reported a net income of $19.5 million, up from $17.6 million in the previous quarter. During the quarter, the company returned $58.3 million to shareholders in dividends. It ended the quarter with over $466.7 million available in cash and cash equivalents.
As of the end of Q2 2023, 6 hedge funds owned stakes in TFS Financial Corporation (NASDAQ:TFSL), up from 5 in the previous quarter, as per Insider Monkey's database. The total value of these stakes is over $13.3 million. Among these hedge funds, Citadel Investment Group was the company's leading stakeholder in Q2.
Kohl's Corporation (NYSE:KSS) is a retail company that operates a chain of department stores in the US. The company's stores offer a wide range of merchandise, including clothing, footwear, accessories, beauty products, home goods, and more. On November 8, the company declared a quarterly dividend of $0.50 per share, which fell in line with its previous dividend. As of November 14, the stock has a dividend yield of 8.76%.
In fiscal Q2 2024, Kohl's Corporation (NYSE:KSS) reported revenue of $3.9 billion, which beat analysts' estimates by $190 million. The company's operating cash flow for the period came in at $430 million. In the first six months of the year, it returned $110 million to shareholders through dividends, which makes KSS one of the best dividend stocks on our list.
At the end of June 2023, 23 hedge funds in Insider Monkey's database reported having stakes in Kohl's Corporation (NYSE:KSS), compared with 28 in the previous quarter. The overall value of these stakes is over $168.3 million.
7. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Dividend Yield as of November 14: 9.09%
Innovative Industrial Properties, Inc. (NYSE:IIPR) is a California-based real estate investment trust company that focuses on the acquisition, ownership, and management of properties in the cannabis industry. The primary business of the company involves acquiring and owning specialized real estate assets used for the cultivation and processing of medical cannabis.
In its recently announced third-quarter earnings, Innovative Industrial Properties, Inc. (NYSE:IIPR) reported revenue of $77.8 million, which showed a 9.8% growth from the same period last year. At the end of September 2023, the company had over $117 million available in cash and cash equivalents.
Innovative Industrial Properties, Inc. (NYSE:IIPR) offers a quarterly dividend of $1.80 per share and has a dividend yield of 9.09%, as of November 11. The company has raised its dividends regularly since 2017, which makes IIPR one of the best dividend stocks on our list.
Innovative Industrial Properties, Inc. (NYSE:IIPR) was a part of 16 hedge fund portfolios at the end of Q2 2023, up from 15 in the preceding quarter, according to our database. The collective value of stakes owned by these hedge funds is over $122.3 million.
Atlantica Sustainable Infrastructure plc (NASDAQ:AY) is a UK-based company that owns and manages a diversified portfolio of infrastructure assets focused on renewable energy and other sustainable sectors. The company currently pays a quarterly dividend of $0.445 per share and has a dividend yield of 9.42%, as of November 14. It is one of the best dividend stocks on our list as the company has been raising its payouts for five consecutive years.
Broadcom Inc. (NASDAQ:AVGO), International Business Machines Corporation (NYSE:IBM), and Verizon Communications Inc. (NYSE:VZ) are some other high-yielding dividend stocks to consider.
The number of hedge funds owning stakes in Atlantica Sustainable Infrastructure plc (NASDAQ:AY) stood at 18 in Q2 2023, up from 16 in the previous quarter, as per Insider Monkey's database. The total value of these stakes is more than $87.6 million.
