Article updated on November 6th, 2023 by Bob Ciura
Spreadsheet data updated daily
High dividend stocks are stocks with a dividend yield well in excess of the market average dividend yield of ~1.7%.
The resources in this report focus on truly high yielding securities, often with dividend yields multiples higher than the market average.
Resource #1: The High Dividend Stocks List Spreadsheet
Note: The spreadsheet uses the Wilshire 5000 as the universe of securities from which to select, plus a few additional securities we screen for with 5%+ dividend yields.
The free high dividend stocks list spreadsheet has our full list of 270 individual securities (stocks, REITs, MLPs, etc.) with 5%+ dividend yields.
The high dividend stocks spreadsheet has important metrics to help you find compelling ultra high yield income investing ideas. These metrics include:
- Market cap
- Payout ratio
- Dividend yield
- Trailing P/E ratio
- Annualized 5-year dividend growth rate
Resource #2: The 7 Best High Yield Stocks Now
This resource analyzes the 7 best high-yield stocks in detail. The criteria we use to rank high dividend securities in this resource are:
- Is in the 850+ income security Sure Analysis Research Database
- Rank based on dividend yield, from highest to lowest
- Dividend Risk Scores of C or better
- Based in the U.S.
Additionally, a maximum of three stocks are allowed for any single sector to ensure diversification.
Resource #3: The High Dividend 50 Series
The High Dividend 50 Series is where we analyze the 50 highest-yielding securities in the Sure Analysis Research Database. The series consists of 50 stand-alone analysis reports on these securities.
Resource #4: More High-Yield Investing Research
– How to calculate your income per month based on dividend yield
– The risks of high-yield investing
– Other high dividend research
The 7 Best High Yield Stocks Now
This resource analyzes the 7 best high yielding securities in the Sure Analysis Research Database as ranked by the following criteria:
- Rank based on dividend yield, from highest to lowest
- Dividend Risk Scores of C or better
- Based in the U.S.
Note: Ranking data is from the current edition of the Sure Analysis spreadsheet.
Additionally, a maximum of three stocks are allowed for any single market sector to ensure diversification.
It’s difficult to define ‘best’. Here, we are using ‘best’ in terms of highest yields with reasonable and better dividend safety.
A tremendous amount of research goes into finding these 7 high yield securities. We analyze more than 850 income securities every quarter in the Sure Analysis Research Database. This is real analysis done by our analyst team, not a quick computer screen.
“So I think it was just looking at different companies and I always thought if you looked at 10 companies, you’d find one that’s interesting, if you’d look at 20, you’d find two, or if you look at 100 you’ll find 10. The person that turns over the most rocks wins the game. I’ve also found this to be true in my personal investing.”
– Investing legend Peter Lynch
Click here to download a PDF report for just one of the 850+ income securities we cover in Sure Analysis to get an idea of the level of work that goes into finding compelling income investments for our audience.
The 7 best high yield securities are listed in order by dividend yield below, from lowest to highest.
- High Dividend Stock #7: Organon & Co. (OGN)
- High Dividend Stock #6: Nu Skin Enterprises (NUS)
- High Dividend Stock #5: Walgreens Boots Alliance (WBA)
- High Dividend Stock #4: MPLX LP (MPLX)
- High Dividend Stock #3: Altria Group (MO)
- High Dividend Stock #2: NextEra Energy Partners LP (NEP)
- High Dividend Stock #1: Office Properties Income Trust (OPI)
High Dividend Stock #7: Organon & Co. (OGN)
- Dividend Yield: 8.4%
- Dividend Risk Score: B
Our penultimate stock is Organon, a healthcare company that develops and delivers health solutions through a portfolio of prescription therapies globally. The company focuses on women’s health through a long list of products that treat various indications.
Source: Investor presentation
Organon was spun out of pharmaceutical giant Merck (MRK) in the summer of 2021. On August 8th, 2023, Organon announced second quarter results for the period ending June 30th, 2023. For the quarter, revenue of $1.61 billion was 1.3% higher from the prior year and $51 million better than expected. Adjusted earningsper-share of $1.31 compared favorably to $1.25 in the prior year and was $0.32 above estimates.
However, that has created what we believe is an undervalued stock, and we think it 22.3% total annual returns in the years to come.
Click here to download our most recent Sure Analysis report on Organon (preview of page 1 of 3 shown below):
High Dividend Stock #6: Nu Skin Enterprises (NUS)
- Dividend Yield: 8.7%
- Dividend Risk Score: B
Nu Skin Enterprises is a health and beauty direct-selling company with diverse product lines. The company has three main product divisions: anti-aging, skin, and pharmaceuticals. The latter division offers nutritional, weight management products and food supplements.
The company has operations internationally in more than 50 countries across the Americas, Europe, and the Asia-Pacific. Nu Skin’s anti-aging and skin-related products include peels, masks, scrubs; moisturizers; body care, hair care, men’s care, oral care, sun protection, and cosmetics. Moreover, the company sells its product directly to consumers through its own sales channel and has a sizable market overseas.
The company’s revenues are reported under seven regional segments: Mainland China, EMEA regions, Americas/Pacific, South Korea, Southeast Asia, Japan, and Hong Kong/Taiwan.
On August 1st, 2023, Nu Skin announced Q2 2023 results, reporting quarterly earnings of $0.54, beating market estimates by $0.03. In addition, the company reported revenues of $500.3 million for the quarter, down 10.8% year over-year.
Click here to download our most recent Sure Analysis report on NUS (preview of page 1 of 3 shown below):
High Dividend Stock #5: Walgreens Boots Alliance (WBA)
- Dividend Yield: 8.7%
- Dividend Risk Score: A
Walgreens Boots Alliance is the largest retail pharmacy in the United States and Europe. The company has a presence in more than nine countries through its flagship Walgreens business and other business ventures.
Source: Investor Presentation
On October 12th, 2023, Walgreens reported results for the fourth quarter of fiscal 2023. Sales grew 9% but earnings-per-share fell -18% over last year’s quarter, from $0.82 to $0.67, due to high COVID-19 vaccinations and tests in last year’s period. Earnings-per-share missed the analysts’ consensus by $0.02. It was the second earnings miss after 11 quarters of earnings beats in a row.
Click here to download our most recent Sure Analysis report on Walgreens Boots Alliance (preview of page 1 of 3 shown below):
High Dividend Stock #4: MPLX LP (MPLX)
- Dividend Yield: 9.4%
- Dividend Risk Score: C
MPLX LP is a Master Limited Partnership that was formed by the Marathon Petroleum Corporation (MPC) in 2012. In 2019, MPLX acquired Andeavor Logistics LP.
The business operates in two segments:
- Logistics and Storage, which relates to crude oil and refined petroleum products
- Gathering and Processing, which relates to natural gas and natural gas liquids (NGLs).
The MLP throws off a considerable amount of distributable cash flow.
Source: Investor Presentation
In late October, MPLX reported (10/31/23) financial results for the third quarter of fiscal 2023. Adjusted EBITDA and distributable cash flow (DCF) per share grew 9% over the prior year’s quarter, primarily thanks to higher tariff rates and increased gas volumes. MPLX maintained a healthy consolidated debt to adjusted EBITDA ratio of 3.4x and a solid distribution coverage ratio of 1.6. We expect the positive business momentum to remain in place in the upcoming quarters.
Click here to download our most recent Sure Analysis report on MPLX (preview of page 1 of 3 shown below):
High Dividend Stock #3: Altria Group (MO)
- Dividend Yield: 9.6%
- Dividend Risk Score: B
Altria Group was founded by Philip Morris in 1847. Today, it is a consumer staples giant. It sells the Marlboro cigarette brand in the U.S. and a number of other non-smokeable brands, including Skoal and Copenhagen.
Altria has increased its dividend for over 50 years, placing it on the exclusive Dividend Kings list. This is a rare business longevity achievement that speaks to the staying power of the company’s brands, even with the gradual decline in smoking in the U.S.
Source: Investor Presentation
On August 1st, 2023, Altria reported second-quarter results. Its adjusted diluted earnings per share came in at $1.31, up 4% year-over-year, while its net revenues declined by 0.5% year-over-year.
Management reaffirmed its 2023 full year guidance range of adjusted diluted earnings per share of between $4.89 and $5.03, reflecting a potential growth range of 1-4% year-over-year.
Click here to download our most recent Sure Analysis report on Altria (preview of page 1 of 3 shown below):
High Dividend Stock #2: NextEra Energy Partners LP (NEP)
- Dividend Yield: 12.5%
- Dividend Risk Score: C
NextEra Energy Partners was formed in 2014 as Delaware Limited Partnership by NextEra Energy to own, operate, and acquire contracted clean energy projects with stable, long-term cash flows. The company’s strategy is to capitalize on the energy industry’s favorable trends in North America of clean energy projects replacing uneconomic projects.
NextEra Energy Partners operates 34 contracted renewable generation assets consisting of wind and solar projects in 12 states across the United States. The company also operates contracted natural gas pipelines in Texas which accounts for about a fifth of NextEra Energy Partners’ income.
On October 24, 2023, NextEra Energy Partners released its earnings report for the third quarter of 2023. The company reported quarterly earnings of $0.57 per share, surpassing the consensus estimate of $0.48 per share, but falling short of the $0.93 per share reported a year ago.
Click here to download our most recent Sure Analysis report on NEP (preview of page 1 of 3 shown below):
High Dividend Stock #1: Office Properties Income REIT (OPI)
- Dividend Yield: 18.2%
- Dividend Risk Score: C
Office Properties Income Trust is a REIT that currently owns 157 buildings, which are primarily leased to single tenants with high credit quality. The REIT’s portfolio currently has a 90.5% occupancy rate.
In late October, OPI reported (10/30/2023) financial results for the third quarter of fiscal 2023. The occupancy rate dipped sequentially from 90.6% to 89.8% and normalized funds from operations (FFO) per share fell -8%, from $1.11 to $1.02.
More than 90% of the debt of OPI is at fixed rates but we expect interest expense to increase this year due to high interest rates. Notably, interest expense has consumed 94% of operating income in the last 12 months.
Click here to download our most recent Sure Analysis report on OPI (preview of page 1 of 3 shown below):
The High Dividend 50 Series
The High Dividend 50 Series is analysis on the 50 highest-yielding Sure Analysis Research Database stocks, excluding royalty trusts, BDCs, REITs, and MLPs.
Click on a company’s name to view the high dividend 50 series article for that company. A link to the specific Sure Analysis Research Database report page for each security is included as well.
More High-Yield Investing Resources
How To Calculate Your Monthly Income Based On Dividend Yield
A common question for income investors is “how much money can I expect to receive per month from my investment?”
To find your monthly income, follow these steps:
- Find your investment’s dividend yield
Note: Dividend yield can be calculated as dividends per share divided by share price - Multiply it by the current value of your holding
Note: If you haven’t yet invested, multiply dividend yield by the amount you plan to invest - Divide this number by 12 to find monthly income
To find the monthly income from your entire portfolio, repeat the above calculation for each of your holdings and add them together.
You can also use this formula backwards to find the dividend yield you need from your investments to make a certain amount of monthly dividend income.
The example below assumes you want to know what dividend yield you need on a $240,000 investment to generate $1,000/month in dividend income.
- Multiply $1,000 by 12 to find annual income target of $12,000
- Divide $12,000 by your investment amount of $240,000 to find your target yield of 5.0%
In practice most dividend stocks pay dividends quarterly, so you would actually receive 3x the monthly amount quarterly instead of receiving a payment every month. However, some stocks do actually pay monthly dividends. You can see our monthly dividend stocks list here.
The Risks Of High-Yield Investing
Investing in high-yield stocks is a great way to generate income. But it is not without risks.
First, stock prices fluctuate. Investors need to understand their risk tolerance before investing in high dividend stocks. Share price fluctuations means that your investment can (and almost certainly will) decline in value, at least temporarily (and possibly permanently) do to market volatility.
Second, businesses grow and decline. Investing in a stock gives you fractional ownership in the underlying business. Some businesses grow over time. These businesses are likely to pay higher dividends over time. The Dividend Champions are an excellent example of this; each has paid rising dividends for 25+ consecutive years.
What’s dangerous is when a business declines. Dividends are paid out of a company’s cash flows. If the business sees its cash flows decline, or worse is losing money, it may reduce or eliminate its dividend. Business decline is a real risk with high yield investing. Business declines often coincide with and or accelerate during recessions.
A company’s payout ratio gives a good gauge of how much ‘room’ a company has to pay its dividend. The payout ratio is calculated as dividends divided by income. The lower the payout ratio, the better, because dividends have more earnings coverage.
A company with a payout ratio over 100% is paying out more in dividends than it is making in profits, a long-term unsustainable situation. A company with a payout ratio of 50% is making double in income what it is paying out in dividends, so it has ‘room’ for earnings to decline significantly without reducing its dividend.
Third, management teams can change their dividend policies. Even if a company isn’t declining, the company’s management team may change priorities and reduce or eliminate its dividend. In practice, this typically occurs if a company has a high level of debt and wants to focus on debt reduction. But it could in theory happen to any dividend paying stock.
The risks of high yield investing can be reduced (but not eliminated) by investing in higher quality businesses in a diversified portfolio of 20 or more stocks. This reduces both business decline risk (by investing in high quality businesses) and the shock to your portfolio if any one stock does reduce or eliminate its dividend (through diversification).
Other High Dividend Research
The free spreadsheet of 5%+ dividend yield stocks in this article gives you more than 200 high yield income securities to review. You can download it below.
Investors should continue to monitor each stock to make sure their fundamentals and growth remain on track, particularly among stocks with extremely high dividend yields.
See the resources below to generate additional compelling investment ideas for dividend growth stocks and/or high-yield investment securities.
- Dividend Kings: 50+ years of rising dividends
- Dividend Aristocrats: 25+ years of rising dividends and in the S&P 500