High Yield Dividend Stocks

last updated on

High Yield Dividend Stocks

2 High-Yield Dividend Stocks To Consider

The chances of rate cuts are now very low due to a strong jobs market and rising inflation. It's safe to say that market volatility is only going to increase in the coming time.

At times like these, it makes sense to have some dependable income. That's where dividend stocks can help you out, as they are a good source of dependable income.

There are many good stocks in the US stock market with a healthy dividend yield. We have picked AbbVie and Chevron as the best high-yield dividend stocks you can consider.

AbbVie

AbbVie has 12 drugs in its portfolio, and around 7 of them generated $2 billion in annual sales. The top products include Rinvoq and Skyrizi.

The best part is that AbbVie is also a member of the Dividend Kings group. This group only contains 50 stocks with a history of raising their dividend yields.

AbbVie has been hiking its dividend yield for 54 years now. This also includes the time when the company was a part of the Abbot Labs.

Another plus point of AbbVie stock is that it has an attractive valuation. This is despite the fact that the stock price has surged in the last 12 months.

The AbbVie stock is trading at a forward P/E ratio of 15.8 only. This makes even more cheap than the average P/E of the healthcare sector, which is around 17.2.

Chevron

Chevron is in a very good position to benefit from the high energy prices. In case you don't know, it is the 3rd largest energy company in terms of market cap.

Chevron has yet to become a part of the Dividend Kings group. Still, it has been raising its dividend yield for 39 years in a row.

The dividend growth of Chevron is even better than big names like Shell, BP, and ExxonMobil. Its yield is around 3.8%, making it one of the best companies in its sector.

Chevron expects its annual EPS to grow at a 10% rate. So, even if the oil prices drop all the way to $50, Chevron still has the money to pay the dividend and expand its operations.

Trending Stories