Investing in high-yielding dividend stocks has always been great way to grow your wealth.
Such stocks allow investors to profit in two ways: one, through potential appreciation of the stock price, and two, through dividend distributions. Better, many dividend paying companies also have a good amount of cash and hand, and are typically strong companies with good prospects for long-term growth.
In fact, here are seven of the top high-yielding stocks you may want to consider.
High Yielding Stock No. 1 – Lumen Technologies (LUMN) carries a dividend yield of 7.05%
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Telecommunications stock, Lumen Technologies pays a dividend yield of 7.5%.
In its most recent earnings report, the company posted net income of $475 million for Q1 2021, as compared to $314 million year over year. Diluted EPS of 44 cents was also better than the 29 cents posted year over year.
“We generated solid Adjusted EBITDA and Free Cash Flow in the first quarter, and we remain on track to achieving our financial targets for the year,” said Jeff Storey, president and CEO. “As we continually invest in our platform capabilities and forge valuable strategic partnerships, we remain uniquely positioned to meet our enterprise customers’ evolving needs.”
High Yielding Stock No. 2 – Ares Management (ARES) carries a dividend yield of 3.41%
Global asset manager, Ares Management carries a dividend yield of 3.4%.
According to a company press relase, “During the first quarter, we crossed a major milestone for our company by surpassing $200 billion in assets under management after reaching $100 billion just four years ago,” said Michael Arougheti, Chief Executive Officer and President of Ares. “Our 39% growth in assets under management was supported by continued strong momentum in both fundraising and fund performance as we generated attractive investment solutions for our investors.”
“We are off to a strong start to the year with $10 billion of new capital raised, 38% growth in our fee related earnings and record quarterly deployment,” said Michael McFerran, Chief Operating Officer and Chief Financial Officer of Ares. “With over $56 billion of available capital in flexible investment strategies, we are well positioned for continued growth as we continue to leverage the advantages of our expanding investment platform and global presence.”
High Yielding Stock No. 3 – Altria Group (MO) carries a dividend yield of 6.89%
At the moment, Altria carries a yield of 6.89%.
Still in a strong uptrend, Altria Group paid out $1.6 billion in dividends in Q1 2021. It also has a current annualized dividend rate of $3.44 a share. Plus, according to the company, “Altria maintains its long-term objective of a dividend payout ratio target of approximately 80% of its adjusted diluted EPS.”
“We are off to a strong start to the year and believe our businesses are on track to deliver against full-year plans. Against a challenging comparison, our tobacco businesses performed well in the first quarter and we continued to make progress advancing our non-combustible portfolio,” said Billy Gifford, Altria’s Chief Executive Officer.
“We announced another important milestone in Altria’s journey in Moving Beyond SmokingTM. We now have full global ownership of on! oral nicotine pouches as we recently closed transactions to acquire the remaining 20% global interest.”
High Yielding Stock No. 4 – Iron Mountain (IRM) carries a dividend yield of 6.08%
With nine years of dividend increases, Iron Mountain carries a dividend yield of 6.08%.
In its most recent quarter, the company’s total revenues came in at $1.08 billion, as compared to $1.07 billion year over year. Net income was $46.6 million, as compared to $64.9 million thanks to one-time charges. Adjusted EBITDA was $380.6 million, as compared to $366 million year over year. Better, the company raised guidance.
Total revenue for example, is expected to come in between $4.365 billion to $4.5 billion from a previous range of $4.325 billion to $4.475 billion.
High Yielding Stock No. 5 – Universal Corp. (UVV) carries a dividend yield of 5.29%
Tobacco company, Universal Corp. carries a yield of 5.29% at the moment.
In its most recent quarter, the company reported net income for the quarter ended December 31, 2020, of $33.3 million, or $1.34 per diluted share, compared with net income of $26.0 million, or $1.04 per diluted share, for the prior year’s third fiscal quarter. Operating income for the third quarter of fiscal year 2021 increased to $60.2 million compared to $44.1 million for the three months ended December 31, 2019.
In addition, according to George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation (NYSE: UVV), stated, “Tobacco shipments in the third quarter of fiscal year 2021 exceeded our previous expectations as customer mandated timing for some shipments forecast for the fourth fiscal quarter were accelerated into the third fiscal quarter. As a result, total tobacco shipment volumes for the nine months ended December 31, 2020, are similar to those of the prior year’s comparable fiscal period. The majority of our remaining committed tobacco orders for the 2020 crop are packed and ready to ship, and we expect sustained strong tobacco shipment volumes in our fourth fiscal quarter of 2021 barring any unforeseen events including changes in shipment timing.”
High Yielding Stock No. 6 – Pfizer (PFE) Carries a Yield of 4%
At the moment, Pfizer carries a yield of 4%.
That could always increase with the company likely to rake in billions from its CV-19 vaccine sales. In fact, the company expects to generate as much as $15 billion.
According to Reuters, “The drug maker is trying to deliver two billion doses of the vaccine in 2021 at a breakneck pace as countries rush to sign supply deals in an effort to control a pandemic that has killed over 2 million people globally. Pfizer has supplied 65 million doses of the vaccine globally and 29 million doses to the United States as of Jan. 31. It expects to supply 200 million doses to the U.S. government by the end of May.”
Earnings haven’t been too shabby either.
According to a recent release, Pfizer saw “First-Quarter 2021 Revenues of $14.6 Billion, Reflecting 42% Operational Growth; Excluding Revenues for BNT162b2 of $3.5 Billion, Revenues Grew 8% Operationally. First-Quarter 2021 Reported Diluted EPS of $0.86, Adjusted Diluted EPS of $0.93. Raises Full-Year 2021 Guidance for Revenues to a Range of $70.5 to $72.5 Billion and Adjusted Diluted EPS to a Range of $3.55 to $3.65.”
High Yielding Stock No. 7 – WP Carey Inc. (WPC) carries a dividend yield of 5.82%
Real estate investment trust, WPC carries a dividend yield of 5.82%.
“The first quarter provided a strong start to the year on a number of fronts — most notably the strength of our investment activity — allowing us to raise our guidance,” said Jason Fox, Chief Executive Officer of W. P. Carey, as quoted in a company press release.
“Furthermore, the debt issuances we completed during the first quarter locked in our lowest ever coupon rates, both in the U.S. and Europe. Given our cost of capital and liquidity, we’re poised to accelerate externally driven growth, executing on the strongest pipeline we’ve seen in years. And with one of the best-positioned net lease portfolios for embedded rent growth, we could see further long-term upside in an inflationary environment.”