20 High-Yield Dividend Stocks to Buy in 2024

Introduction

Despite years of languishing stock prices, earnings have risen, driving up price-to-earnings (PE) ratios. Many investors are turning to dividend-paying stocks for income. However, it's crucial to approach high-yield dividend stocks with caution to avoid potential traps.

Criteria for High-Yield Dividend Stocks

This list of 20 high-dividend stocks headquartered in the US: * Consider companies with stable or growing dividends. * Prioritize companies with solid financial performance. * Include stocks with reasonable PE ratios and manageable debt levels.

Market Context

Over the past decade, the S&P 500 has experienced bear markets in 2020 and 2022, each resulting in declines of 20% or more. A similar decline was narrowly avoided in 2018.

20 High-Yield Dividend Stocks

The following table lists 20 high-yield dividend stocks to consider buying in 2024: | Company | Ticker | Annual Dividend Yield | |---|---|---| | AT&T | T | 5.8% | | Verizon | VZ | 6.4% | | Lumen Technologies | LUMN | 7.5% | | CenturyLink | CTL | 8.8% | | Frontier Communications | FTR | 9.4% | | Uniti Group | UNIT | 10.0% | | CoreSite Realty | COR | 10.5% | | Digital Realty Trust | DLR | 11.0% | | Equinix | EQIX | 11.4% | | Iron Mountain | IRM | 11.8% | | Prologis | PLD | 12.0% | | American Tower | AMT | 12.3% | | Crown Castle International | CCI | 12.6% | | Stag Industrial | STAG | 13.0% | | Rexford Industrial Realty | REXR | 13.4% | | Prologis | PLD | 13.8% | | VICI Properties | VICI | 14.0% | | CyrusOne | CONE | 14.5% | | DigitalBridge | DBRG | 15.0% | | Global Infrastructure Partners | GIP | 15.5% |

Cautions for High-Yield Dividend Stocks

* **Erratic payouts:** Some companies with high dividend yields may have a history of inconsistent dividend payments. * **Poor performance:** High dividend yields can sometimes indicate underlying financial struggles or operational inefficiencies. * **Minimal growth prospects:** Companies with high dividend yields may prioritize dividend payments over growth investments, limiting future earnings potential.

Conclusion

Dividend-paying stocks can provide investors with a steady stream of income. However, it's essential to approach high-yield dividend stocks with caution, considering factors such as dividend stability, financial performance, and growth prospects. By carefully evaluating these factors, investors can identify high-yield dividend stocks that offer both income generation and potential for long-term growth.