Dividend Stocks

7 Dividend Stock Dynamos to Upgrade Your Income Game

Down by one run in the bottom of the ninth, you, as the batter, have several options. That’s especially the case with the bases loaded and one out on the board. Arguably, a consensus of baseball experts will agree that there is one correct choice: this action item is the equivalent of high dividend stocks.

Now, if you’re the San Diego Padres, you’re going to be tempted to do something stupid, such as swinging on the first pitch. That’s the equivalent of eschewing high dividend stocks and instead acquiring super-risky high growth plays. In that scenario, if you swing and don’t contact the ball just right, you can end up hitting into a double play. That ends the game.

No, what you do to secure the run and, at least, end the inning on level ground. You work the opposing pitcher and let him “score” a run – for your team. Of course, this tactic carries risks because there’s a good chance you can let a pitch you like passively sail by.

But sometimes, you just need a run. And that’s what high dividend stocks potentially give you: a chance to win. With that, below are compelling ideas to consider.

Devon Energy (DVN)

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Based in Oklahoma City, Oklahoma, Devon Energy (NYSE:DVN) falls under the oil and gas exploration and production sphere. To be fair, the hydrocarbon ecosystem has been under pressure for various reasons. One of them is elevated borrowing costs that have applied pressure on pricing. Nevertheless, geopolitical dynamics could shift in a cynically favorable manner. If so, you may want exposure to high dividend stocks in the upstream energy sector.

It must be said, however, that Devon isn’t peaches and cream. Yes, it has consistently beaten its bottom-line earnings targets in the past four quarters. Also, during the trailing 12 months (TTM), the company did post net income of $3.36 billion. However, in terms of quarterly earnings and revenue growth, Devon is presently down on a year-over-year basis.

Further, projections for fiscal 2024 aren’t pretty. Earnings per share may slip 6.13% to $5.36. Revenue may fall slightly to $15.25 billion. However, a geopolitical flashpoint that threatens global hydrocarbon supply chains could easily boost demand in the upstream sector.

Let’s not forget why we’re here. Devon offers a forward dividend yield of 1.86%. That’s not something to ignore.

Qifu Technology (QFIN)

A hand lingers over a bright blue tech wheel that says

Source: Wright Studio / Shutterstock.com

Moving into the riskier sphere of high dividend stocks, we’re going to talk about China’s Qifu Technology (NASDAQ:QFIN). Falling under the financial services sector, Qifu is involved in credit services. That’s a bit of a mixed bag when you consider some of the frailties of the post-pandemic global economy. Nevertheless, it’s also intriguing because of the company’s ties to the Chinese commercial machinery.

Financial technology (fintech) firms are booming and so, the Chinese market should be no different. Prospective investors may be encouraged with Qifu’s performance consistency. Between the second quarter of 2023 to Q1 2024, the company’s average EPS reached just under $1. This performance translated to an earnings surprise of 4.58%.

During the TTM period, Qifu posted net income of $4.52 billion or earnings of $3.82 per share. Revenue in the period reached $16.84 billion. Further, the most recent quarterly sales growth rate (YOY) stands at 15.4%. Therefore, the rather modest expectations for fiscal 2024 should see an upgrade.

In the meantime, speculators can enjoy the fintech firm’s 5.46% forward annual dividend yield. It’s one of the high dividend stocks to consider.

LyondellBasell Industries (LYB)

A LyondellBasell production plant in Wesseling, Germany is seen at dusk.

Source: Flagmania / Shutterstock.com

Based in Houston, Texas, LyondellBasell Industries (NYSE:LYB) operates within the specialty chemicals industry. It specializes in material sciences, delivering critical assets to various industries. Its processing technologies also serve multiple sectors, including food packaging, home furnishings, automotive components and paints and coating applications. Granted, it’s not the most exciting idea among high yield dividend stocks. It is, however, extremely pertinent.

Ultimately, that’s what you’re looking for as a passive-income investor: pertinence. Again, we’re not necessarily interested in hitting a grand slam (though that would be nice). Instead, we’re putting runs on the board, one at a time. LyondellBasell, despite incurring some misses in recent earnings reports, is a solid long-term candidate because of the underlying relevance.

During the TTM period, the company posted net income of $2.11 billion or $6.48 per share. Revenue reached $40.78 billion. For fiscal 2024, it sees a slight dip in EPS while sales might rise 1% to $41.56 billion. That’s not great though the most optimistic analyst is calling for revenue of $47.49 billion.

Either way, LyondellBasell offers a forward yield of 5.63%. That makes it one of the high dividend stocks to consider.

Healthpeak Properties (DOC)

Various graphical representations of medical imagery are shown in front of a doctor using a tablet computer. DNA stock

Source: Shutterstock / PopTika

Structured as a real estate investment trust or REIT, Healthpeak Properties (NYSE:DOC) is a fully integrated enterprise that focuses on the healthcare sector. Per its public profile, Healthpeak owns, operates and develops high-quality real estate for healthcare discovery and delivery. Since the sector enjoys a permanently relevant narrative, DOC makes a compelling argument for high dividend stocks.

To be clear, I’m not suggesting that Healthpeak is permanently relevant and thus faces no downside risk: that’s not the case at all. Rather, the concept of medical professionals caring for their patients is effectively a forever market. Financially, it must be said that Healthpeak is rather hit or miss. When it’s cooking, it’s cooking. When it’s not, you can tell.

During the TTM period, the REIT posted net income of $193.06 million or 35 cents per share. Revenue in the period reached $2.26 billion. Now, the intriguing aspect is that while analysts project a sizable drop in EPS to 35 cents in fiscal 2024, they’re simultaneously projecting sales of $2.61 billion. If so, that would be up 19.8% from the prior year.

It’s possible, then, that investors can enjoy growth and passive income. Right now, the company offers a forward yield of 6.24%.

Apple Hospitality (APLE)

Woman standing in hotel room with luggage looking at the view. Hotel stocks.

Source: Boyloso / Shutterstock

Headquartered in Richmond, Virginia, Apple Hospitality (NYSE:APLE) is also structured as a REIT. It falls under the hotel and metal segment, as its name suggests. As of the end of Q1 2024, Apple owned 224 hotels with a total of nearly 30,000 individual guest rooms. These rooms are spread across 37 states and the District of Columbia.

Fundamentally, Apple may benefit from travel prioritization. When Covid-19 regulations started fading, the phenomenon of revenge travel shot into the mainstream consciousness. Nowadays, the acute need to travel has diminished, especially amid rising inflation and interest rates. Still, consumer data shows that people are prioritizing experiential-based events. That could lead to downwind benefits for APLE stock.

In the TTM period, Apple posted net income of $198.62 million or 85 cents per share. Revenue in the cycle hit $1.36 billion. Notably, covering experts forecast that fiscal 2024 EPS could rise 19.5% to reach 92 cents. On the top line, sales may rise 7.3% to hit $1.44 billion.

For passive income, Apple offers a forward dividend yield of 6.58%. That makes it a tempting proposition for high dividend stocks.

Gaming and Leisure (GLPI)

a room of slot machines in a casino to represent gambling stocks

Source: Shutterstock

Based in Pennsylvania, Gaming and Leisure (NASDAQ:GLPI) is another REIT, this time focusing on the casino gaming sector. Per its corporate profile, Gaming and Leisure is engaged in the business of acquiring, financing and owning real estate property to be leased to gaming operators. Fundamentally, the business appears compelling due to the aforementioned travel prioritization effect.

While folks may no longer use the term revenge travel, the underlying concept is still alive. People have been cooped up for a long time during Covid. And that reality may have inspired a sense that there’s more to life than merely punching a clock. To be fair, it’s a higher-risk play because the REIT has been hit or miss with its most recent earnings disclosures.

Still, the company could make a comeback, especially if travel interests focus on the domestic realm. During the TTM period, net income reached just under $725 million or $2.71 per share. Revenue landed at $1.46 billion. For fiscal 2024, analysts see a modest rise in EPS to $2.86. On the top line, sales could enjoy a 5.1% lift to $1.51 billion.

Lastly, the company offers a forward dividend yield of 6.85%. It’s a tempting candidate for high dividend stocks.

Vector Group (VGR)

a pile of cigarettes

Source: Shutterstock

Headquartered in Miami, Florida, Vector Group (NYSE:VGR) falls under the consumer defensive sector, technically speaking. However, investors will zero in on the tobacco specialty. Of course, the business is controversial. It also runs relevancy concerns given how much anti-tobacco organizations have successfully broadcasted the health risks associated with the industry.

So, why bother discussing VGR stock? Frankly, even with global smoking prevalence rates down, many people continue to enjoy the practice. Moreover, Vector has a subsidiary called Zoom E-Cigs, which, as you might guess, sells e-cigarettes. Featuring a relatively cleaner format than the traditional variety, e-cigarettes (or vaporizers) have catapulted in popularity.

Admittedly, Vector has seen some rough waters in recent earnings disclosures. During the TTM period, the company posted net income of $178.63 million or $1.16 per share. Revenue hit $940.42 million. Still, for fiscal 2024, analysts do see a 10.3% lift in EPS to $1.28.

In terms of passive income, Vector offers a gargantuan 7.2%. It’s super risky given the underlying controversial industry. Still, it’s one of the most tempting high dividend stocks to consider.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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