20 High-Yield Dividend Stocks to Consider for 2024 | The Motley Fool (2024)

There's no official definition of a high-yield dividend stock. However, most investors would classify it as a stock with a dividend yield higher than a common benchmark such as the S&P 500 index or a 10-year U.S. Treasury note. In late 2023, the dividend yield on the S&P 500 averaged about 1.7%, while the 10-year note was around 4.8%. Many investors would consider a stock as having a high-dividend yield if it were double the S&P 500, while others would require a payout at or above the 10-year-note level.

Those baseline measurements aside, investors shouldn't buy a stock because of itsdividend yieldalone. They need to make sure that thedividend payments are sustainable. It should be a high-quality company with durable cash flow, a strong balance sheet, and visible growth potential. With all that in mind, here are 20 high-yield dividend stocks to consider buying for dividend income.

20 high-yield dividend stocks

20 high-yield dividend stocks to watch

Here's a brief look at what makes each of these high-yield dividend stocks look like attractive buys in 2024.

Dividend stocks 1-5

1. AbbVie

Drugmaker AbbViehas had an excellent dividend track record since its spinoff fromAbbott Labs (ABT -0.12%) in 2013. From its inception through late 2023, AbbVie has increased its payout by a whopping 270%. AbbVie has carried on the dividend growth legacy it inherited from Abbott by boosting its payout every year.

Although AbbVie will lose its patent-protected exclusivity for the top-selling drug Humira in 2023, newer products likeRinvoq and Skyrizi should help cushion the blow. It's in excellent shape to keep the dividend income flowing and growing.

2. AvalonBay Communities

As one of the largest apartment owners in the country, AvalonBay benefits from collecting steady rental income to support its high-yielding payout. The real estate investment trust (REIT) also boasts a top-tier financial profile. The company's financial strength allows it to expand its apartment portfolio by developing and acquiring new communities.

While the company hasn't increased its payout every year, AvalonBay has grown its dividend at a 5% annual rate since its 1994 initial public offering (IPO), raising it by 3.8% in early 2023. With demand for apartments continuing to grow, the REIT should be able to keep increasing its dividend in the coming years.

3. Brookfield Infrastructure

Brookfield Infrastructureoperates a diversified portfolio of infrastructure businesses focused onutilities, transportation,energy (midstream), and data. The businesses generate relatively stable cash flow to support its growing dividend. The infrastructure stock delivered its 14th straight yearly payout increase in early 2023.

Brookfield envisions increasing its dividend at an annual rate of 5% to 9% over the long term, powered by the organic growth of its existing businesses and acquisitions. The company's organic growth drivers of inflation-linked rate increases, volume growth as the global economy expands, and expansion projects should grow its funds from operations by 12%+ per share over the next few years. Meanwhile, future acquisitions will further pad its bottom line. The company acquired two data center platforms and a global container leasing company in 2023.

4. Brookfield Renewable

Brookfield Renewableis a sibling company of Brookfield Infrastructure. Brookfield Corporation(BN 0.86%) controls both companies. This Brookfield entity focuses onrenewable energy, including hydroelectric, wind, solar, and energy storage facilities. The assets generate steady cash flow backed by long-term power purchase agreements with utilities and other users, supporting Brookfield's high-yield dividend.

The company also expects to increase its payout at an annual pace of 5% to 9% over the long term. Powering that forecast are its organic growth drivers -- including an extensive pipeline of new renewable energy projects -- plus additional acquisitions. Brookfield Renewable expects to grow its funds from operations per share by more than 10% annually through 2028.

5. Duke Energy

Duke Energy is a leading utility. The company's electric utilities serve 8.2 million customers across six states, while its natural gas utilities provide gas to 1.6 million customers across five states. Its businesses generate very stable cash flows backed by government-regulated rate structures.

Duke has a large-scale investment program underway to expand its transmission and distribution network. These investments should grow its earnings per share by 5% to 7% annually through 2027. The earnings growth should enable the utility to continue growing its dividend.

Dividend stocks 6-10

6. Crown Castle International

Crown Castle is a REIT focused on owning communications infrastructure in the U.S., including cell towers, small cells, and fiber-optic networks. Its infrastructure is crucial to supporting the mobile industry's next-generation network: 5G. Crown Castle sees a decades-long opportunity to invest in new 5G-related infrastructure.

While the company is facing some near-term headwinds, it expects to be able to resume growing its already high-yielding dividend after 2025. It has increased its dividend payment at a 9% compound annual rate since 2016.

7. Chevron

The big oil giant's top financial priority is to sustain and grow its dividend. The company delivered its 36th consecutive annual dividend increase in 2023, one of the longest streaks among oil stocks. Chevron has grown its dividend at a 6% compound annual rate over the last 15 years.

Chevron's integrated operations, low-cost oil business, and lower-carbon energy investments position it to sustain and grow its dividend. The oil giant has also been an active acquirer in 2023. It bought PDC Energy and agreed to buy Hess (HES 0.37%). Those deals will boost its cash flow and growth prospects. As a result, Chevron anticipates accelerating its dividend growth by increasing its payout by 8% in early 2024.

8. Enbridge

Canadian oil pipeline giant Enbridge has been an outstanding dividend stock over the years. It has paid dividends for more than 68 years and has expanded its payout in each of the past 28 years.

While the world is transitioning its fuel supply from oil to cleaner alternatives, Enbridge is adapting by investing in infrastructure to support natural gas projects and offshore wind farms. The investments have the company on track to increase its cash flow per share by a mid-single-digit annual rate for the next several years, which should support continued dividend growth.

9. Enterprise Products Partners

Enterprise Products Partnersranks as one of the top players in themidstream oil and gas market. The master limited partnership (MLP) has increased its payout for a quarter century.

While the company currently focuses on fossil fuels, it formed an evolutionary technology group in 2021 to pursue opportunities in the energy transition. The future investments should give Enterprise the fuel to continue increasing its dividend.

10. Gilead Sciences

Gilead Sciencespays one of the most attractive dividends in the biotechnology sector. The company has a solid dividend track record, having increased its payout every year since it initiated one in 2015. Its strong HIV franchise is the biotech's anchor.

However, Gilead has also been able to cash in on its antiviral treatment Remdesivir, one of the few approved treatments for COVID-19. It has several other promising drugs in the pipeline that should drive sales growth in the future.

Dividend stocks 11-15

11. Blackstone

Leading alternative asset manager Blackstone has a unique dividend policy. The company returns almost all its earnings to investors via dividends and share repurchases, so its dividend payment changes each quarter as its earnings fluctuate. However, the overall payment has steadily risen over the years, along with Blackstone's earnings.

12. Regions Financial

Regions Financial is one of the country's largest banks, focusing on the South and Midwest. Regions Financial has a long history of paying dividends. While the company reset its payment level during the 2008-09 financial crisis, it has increased the dividend 20-fold since that time. It gave investors a whopping 20% raise in 2023.

13. Extra Space Storage

Extra Space Storage is a REIT focused on owning, operating, and managing self-storage facilities. The company has been one of the best-performing stocks in the REIT sector over the past decade. A big driver is its rapidly rising dividend. Extra Space Storage has increased its payout by almost 550% over the last 10 years. More growth seems likely. It acquired fellow self-storage REIT LifeStorage in 2023. The transformation deal will grow its portfolio while providing new growth opportunities.

14. 3M

3M has been a phenomenal dividend stock. The industrial conglomerate has paid dividends for more than a century and has increased its payout in each of the past 65 straight years. As such, it's a Dividend King, a company with 50 or more years of consecutive dividend increases. The company's strategy of investing in new products has driven that steady growth. It has expanded its sales and enabled 3M to keep increasing its dividend.

15. Pfizer

Pfizerhas paid dividends for roughly 340 consecutive quarters. The pharmaceutical giant's investments in research and development are paying off. The company developed one of the first vaccines against COVID-19 and followed that up with a successful oral treatment. The commercial successes have enabled Pfizer to continue making research and development investments and strategic acquisitions that should increase its cash flow in the future. Pfizer should continue to generate plenty of cash to fund future dividends.

Dividend Stocks 16-20

16. VICI Properties

VICI Properties is a REIT focusing on owning experiential real estate like casinos. The company leases those properties back to operating companies under long-term triple net leases (NNN). The agreements supply it with steadily rising rental income from annual rate increases. The company also steadily invests in new gaming and nongaming real estate. VICI Properties' growing income has enabled it to increase its dividend in each of the six years since its formation.

17. Realty Income

Realty Income lives up to its name. The REIT, which pays a monthly dividend, has made more than 635 consecutive payments. Even better, it has increased its payout more than 120 times since its initial public offering in 1994, expanding it at a 4.4% compound annual rate. That adds up to more than 25 consecutive years.

Driving that growth has been a steady diet of acquisitions. Realty Income purchases single-tenant properties in sale-leaseback transactions, acquires larger property portfolios, and merges with other REITs to grow its portfolio, rental income, and dividend.

18. Verizon Communications

Telecommunications giant Verizon has been a great income stock over the years. The company delivered its 17th consecutive annual dividend increase in 2023, the longest current streak in the U.S. telecom sector. Verizon should be able to continue increasing its dividend as it invests to transition its mobile network to 5G, bringing faster data speeds to its customers.

19. Walgreens Boots Alliance

Pharmacy giant Walgreens has paid dividends for more than 90 years and expanded its payout in each of the past 47. The company expects the streak to continue. It's steadily transforming into a consumer-centric healthcare company that should accelerate its earnings growth. The strategy should enable the company to continue increasing its payout.

20. Kenvue

Kenvue is new to paying dividends. The consumer health products company initiated its dividend in 2023 after its separation from healthcare giant Johnson & Johnson (JNJ 0.25%).

As a Dividend King with more than 60 years of dividend increases, its former parent leaves behind a long legacy of paying dividends. Kenvue should carry on that legacy. The company has a strong portfolio of iconic healthcare brands that generate lots of cash flow. It also has a healthy balance sheet. Those features put it in an excellent position to grow its cash flow and dividend payments.

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Great income now, more later

All 20 of these dividend stocks offer an above-average yield, making them stand out in a time when many companies don't pay very high dividends. Even better, each one has a solid track record of steadily increasing its dividend and showing no signs of stopping, so they're great income stocksto buy and hold for the long haul.