Uncover the risks of investing in 3 scary high-yield dividend stocks that income investors should avoid. Dive into insightful analysis to protect your investment portfolio.
Discover the top picks of a billionaire income investor in ultra-high-yield dividend stocks. Uncover exclusive insights on lucrative investment opportunities.
Amid market turbulence, three S&P 500 stalwarts stand out with yields enhanced by share price declines. AT&T (T) has taken a 43% hit, boasting a 6% yield. Pfizer (PFE), with a 53% drop, offers a 3.4% yield. JPMorgan Chase (JPM) has plunged 20% and yields 3.3%. These companies’ long histories, dominant industries, and reliable dividends make them compelling purchases for long-term investors seeking income and potential gains.
Looking to invest $500? These 3 no-brainer stocks are worth considering: 1) Amazon with its strong e-commerce and cloud services, 2) Microsoft for its dominance in the tech industry, and 3) Visa for its reliable financial services. Don’t miss out on potential gains, grab these stocks now.
Enterprise Products Partners (EPD) is emerging from its recently concluded capital expansion projects with strong momentum and ample cash flow. The energy giant is geared to deploy this cash flow into accretive growth opportunities and increase returns to unitholders via higher distributions and buybacks.
BofA Securities analyst Doug Leggate believes EPD is in the early stages of a multi-year growth cycle with enhanced risk-adjusted returns for unitholders. Leggate upgraded the stock to Buy and increased his price objective to $37 per unit, implying an upside potential of over 20% from current levels.
At its current unit price, EPD offers investors a very attractive distribution yield of 7.3%. Moreover, the partnership has consistently increased its distributions and repurchased its units, further enhancing shareholder returns. Given its strong fundamentals and promising growth prospects, EPD appears to be a compelling investment opportunity for income-oriented investors.
**Dividend Aristocrats Cut Payouts Amidst Market Turmoil**
Amidst economic uncertainty, several Dividend Aristocrats — companies with a long history of boosting dividends — have made the difficult decision to slash their payouts. Companies like AT&T and General Motors have discontinued their decades-long streaks of uninterrupted dividend increases, signaling a shift in corporate priorities as they navigate market volatility and rising costs. While these cuts may disappoint income-seeking investors, they underscore the challenges faced by businesses in a tumultuous economic environment.
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Investment firm Morningstar predicts that dividend stalwart AT&T (T) will break into the coveted trillion-dollar market cap club by 2040. The company’s strong cash flow, dividend-friendly management, and growing wireless business are seen as key factors driving this growth. With an estimated 5.4% annualized return, AT&T’s steady dividend payments are expected to compound over the next two decades, potentially making it one of the world’s largest companies.
**2 Ultra-High-Yield Dividend Stocks to Buy Hand Over Fist**
Income-hungry investors should consider these two dividend powerhouses:
**1. Brookfield Infrastructure Partners (BIP):** Yielding 5.1%, BIP invests in utilities, energy, and transportation infrastructure worldwide.
**2. Enbridge (ENB):** Canada’s largest pipeline operator, ENB offers a 7.0% yield backed by strong demand for its energy infrastructure.
**1 to Avoid: CoreCivic (CXW)**
Despite its 9.0% yield, investors should steer clear of CoreCivic due to its declining profitability and regulatory risks associated with its private prison operations.