Three High-Yield Dividend Stocks to Consider Now

Investors seeking cash flow through dividends can consider three stocks highlighted in a recent report. Pfizer, BCE, and Western Union each offer impressive yields compared to the S&P 500 average, presenting opportunities for solid annual income amidst varying growth prospects.

Date: 05-10-2024

AI Rating: 6

Stock Analysis

The report outlines three dividend stocks: Pfizer, BCE, and Western Union, emphasizing their potential for annual income generation through dividends.

1. Pfizer (NYSE: PFE)

Pfizer's dividend yield of 5.9% is notably high but is reflective of its 13% decline in share price over the past five years, raising concerns about long-term viability due to the reduction in COVID-19-related revenue and looming patent expirations. Despite facing recent underwhelming quarters, the extensive pipeline of over 110 programs highlights substantial growth potential, indicating that there may be positive longer-term prospects if the company can successfully develop new products. However, the significant asset impairment charges are a negative factor.

2. BCE (NYSE: BCE)

BCE shows consistency with a steady increase in revenue, rising from CA$22.9 billion in 2020 to CA$24.7 billion in 2023, which is a strong indicator of operational stability. Its low beta of 0.50 suggests less volatility compared to market fluctuations, which is favorable for risk-averse investors. With an 8.5% dividend yield, BCE is positioned well for investors focused on income stability.

3. Western Union (NYSE: WU)

Western Union's performance showcases resilience with an expectation of operating margins around 20%. The company anticipates earnings per share of at least $1.62 with annual dividends of $0.94 per share, indicating that its dividend is well-covered. Online transaction growth is indicative of a positive trend, though overall revenue has faced challenges this year.

Conclusion

Investors should weigh the high yields offered by these stocks against their underlying business challenges and market conditions. While BCE presents a solid income play, Pfizer and Western Union's longer-term viability depends heavily on their strategic developments and market recovery.

Stocks: PFE BCE WU