The timeless adage “buy low, sell high” has drawn countless people to the stock market. But as many find out the hard way, the trick is easier said than done.
Stocks don’t always go up. Although the S&P 500 is up 17% in 2023, it is still down from where it was at the end of 2021.
Good news? You don’t need to actively trade stocks to make money. You can also collect dividends.
With the right dividend stocks, investors can bypass the stress and uncertainty that comes with trying to time the market while enjoying a stable income stream.
Business legend John D. Rockefeller once said, “You know the only thing that makes me happy? It’s to see my dividends come in.”
But most companies don’t pay much these days. The average dividend yield of S&P 500 companies is only 1.5%.
But some companies pay much more. Here are two companies that Wall Street finds particularly attractive — they offer yields of up to 7.9 percent.
Plain All American Pipeline (NASDAQ:PAA)
With oil prices rising again, many oil producers are back in focus. But if you’re looking for dividends, you might want to consider midstream operators.
For example, Plains All American Pipeline owns extensive pipeline gathering and transportation systems in the US and Canada that serve key production basins, transportation corridors, and major trade centers and export outlets.
The partnership has a quarterly distribution rate of 26.75 cents. The stock trades at $14.72, which comes out to an annual yield of 7.3%.
In the year During the second quarter of 2023, Meadow generated $371 million of indirect distributable cash flow available to common unitholders. Taking into account the $187 million in common unit cash distributions for the quarter, it had a distribution coverage ratio of 1.98 times and over $184 million in distributable cash flow.
Plaintiff’s stock is up 27% year to date, and Morgan Stanley analyst Robert Cade is more bullish on the horizon. Cadd has an overweight rating on the partnership and a price target of $18 — about 22% above where the stock currently sits.
Verizon Communications Inc. (NYSE:VZ)
Telecommunications is an essential service, meaning that demand is relatively consistent regardless of economic conditions.
Verizon is one of the biggest players in the telecom arena with a revenue of $136.8 billion by 2022. The company has a track record of consistently paying and growing over time.
In the year In the first half of 2023, Verizon paid out about $5.5 billion in dividends to shareholders.
Last week, the company’s board of directors announced a quarterly dividend of 66.5 cents per share, a 1.9 percent increase from the previous payout. This marks Verizon’s 17th consecutive annual increase in profits.
At the current share price, the new dividend translates to an annual yield of 7.9 percent.
Citigroup analyst Michael Rollins has a buy rating on Verizon and a price target of $40. Given that shares are trading at $33.90 today, the price target suggests an 18% upside.
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This column Want a high yield? These 2 stocks are paying more than 7% It appeared at first Benzinga.com
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