3 Monster Stocks to Buy Right Now With Dividend Yields of 5% or More
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3 Monster Stocks to Buy Right Now With Dividend Yields of 5% or More
09 mins
What’s the yield of the Vanguard High Dividend Yield ETF (NYSEMKT: VYM)? Only 2.2%. That qualifies as a high yield for some investors these days.
But investors hoping to generate more income have other alternatives that offer much juicier yields. Here are three monster stocks to buy right now with dividend yields of 5% or more.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
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1. Enterprise Products Partners
Enterprise Products Partners (NYSE: EPD) sports a lofty forward distribution yield of 6.1%. Even better, the limited partnership (LP) has increased its distribution for 27 consecutive years. Enterprise appears to be in a good position to keep that streak going.
The company operates over 50,000 miles of pipelines that transport natural gas liquids (NGLs), crude oil, petrochemicals, and other refined products throughout much of the U.S. Enterprise Products Partners also owns midstream energy assets, including liquids storage facilities, fractionators, and natural gas processing trains.
There’s a good case to be made that Enterprise Products Partners is the best pipeline stock on the market. It boasts the highest credit rating in the midstream space, reflecting the LP’s strong balance sheet. Enterprise has also delivered an average return on invested capital of 12% over the last 10 years.
You might even be surprised by Enterprise Products Partners’ growth prospects. Multiple factors are driving increased demand for natural gas and NGLs, including overall economic growth and the rapid expansion of data center infrastructure. Enterprise is preparing to capitalize on these opportunities, with $5.3 billion of major capital projects under construction.
2. Pfizer
Pfizer (NYSE: PFE) offers one of the most attractive dividends in the healthcare sector, yielding around 7.2%. The big drugmaker has paid a dividend for 350 consecutive quarters, with the 351st due in September.
Few companies have a broader product lineup than Pfizer. It markets over a dozen blockbuster products, including cancer therapies, primary care drugs, specialty drugs, and vaccines. Pfizer’s pipeline features 96 programs, 36 of which are either awaiting regulatory approval or in late-stage testing.
To be sure, Pfizer faces a daunting patent cliff over the next couple of years. Adcetris and Xeljanz lose U.S. patent exclusivity this year. Eliquis, Ibrance, and Xtandi follow suit in 2027. The company also experienced a recent setback with sigvotatug vedotin failing to meet the primary endpoint in a phase 3 study targeting previously treated non-small cell lung cancer (NSCLC).
However, Pfizer remains confident that the antibody-drug conjugate will be successful as part of a combination therapy in the more lucrative first-line NSCLC indication. Even more promising, though, is the company’s experimental obesity drug, berobenatide. Pfizer hopes to launch the drug in 2028 and believes that it will compete well against Eli Lilly‘s (NYSE: LLY) Mounjaro.
3. Verizon Communications
Verizon Communications (NYSE: VZ) remains a favorite for many income investors — and for good reason. The communication stock pays a forward dividend yield of 6.2%. Verizon has also increased its dividend for 19 consecutive years.
There’s no question that Verizon struggled somewhat in recent years. However, CEO Dan Shulman said in the company’s first-quarter update that “our turnaround is not only progressing, but it is also gaining momentum.” He pointed to Verizon’s stronger financials, lower customer churn, and first positive Q1 postpaid phone net adds since 2013 as proof.
The best news for investors seeking Verizon’s high yield is that the company’s free cash flow continues to grow. Verizon generated $3.8 billion of free cash flow in Q1, up 4% year over year. Management expects free cash flow of at least $21.5 billion in full-year 2026, the highest level since 2020.
Verizon’s acquisition of Frontier Communications expanded its fiber-optic footprint and bolstered its competitive position in broadband services. The company is also preparing for game-changing 6G networks, which could present a tremendous catalyst for the stock by the end of the decade.
Should you buy stock in Verizon Communications right now?
Before you buy stock in Verizon Communications, consider this:
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Keith Speights has positions in Enterprise Products Partners, Pfizer, and Verizon Communications. The Motley Fool has positions in and recommends Eli Lilly, Pfizer, and Vanguard High Dividend Yield ETF. The Motley Fool recommends Enterprise Products Partners and Verizon Communications. The Motley Fool has a disclosure policy.
