Income investors can’t always be too picky about when they buy stocks. Sometimes they have to put their money to work, regardless of what’s happening in the stock market or if there’s uncertainty about an upcoming election.
However, income investors can always picky about which stocks to buy. The good news is that there are several great options right now. Here are three high-yielding dividend stocks to buy hand over fist in September.
1. Dominion Energy
Dominion Energy (NYSE: D) provides electricity or natural gas to more than 4.5 million customers in 13 states. The company has major operations in its home state of Virginia and neighboring North Carolina.
Income investors should like Dominion Energy’s forward dividend yield of 4.7%. While the company cut its dividend payout in 2020 due to its high debt levels, management says it is “100% committed to [the] “current dividend” with “dividend certainty” being one of the five main principles of the business plan.
Dominion has taken positive steps to reduce its debt, which has increased the reliability of its dividend. Those efforts were recognized in June with S&P updating the outlook for the company from negative to stable. The other two major credit rating agencies — Fitch and Moody‘s — also have a stable outlook for Dominion.
I think there are two big reasons to buy Dominion Energy stock in September, besides the attractive dividend yield. The Federal Reserve is expected to cut interest rates this month, which will give utilities a boost. Dominion is also poised to benefit from the booming data center market in Northern Virginia.
2.Pfizer
Pfizer (NYSE: PFE) is no stranger to many Americans. The giant pharmaceutical company had eight blockbuster drugs last year, with dozens of others generating more than $100 million in annual sales.
With a forward dividend yield of about 5.9%, Pfizer should certainly be no stranger to income investors. CFO David Denton recently said that “maintaining and growing the dividend is our top priority.”
Yes, Pfizer has some challenges. Sales of its COVID-19 products have dropped significantly. The company is also facing a patent cliff, as key patents for several drugs expire in the coming years.
However, I think the worst is over for Pfizer on the COVID-19 revenue front. The drugmaker expects its corporate development deals to generate more than enough revenue to offset the effects of patent expirations. Pfizer’s pipeline contains many promising programs, most notably its obesity drug danugliprone. I expect the company to deliver solid growth in the second half of the decade.
3. United Parcel Service
United Parcel Service (NYSE: UPS) is another familiar name. It is the largest package delivery company in the world. UPS is also a leader in the global supply chain management market.
Packages aren’t the only thing UPS delivers; the company also delivers juicy dividends to shareholders. The forward dividend yield hovers around 5.1%. UPS has raised its dividend for 15 years in a row.
What UPS hasn’t delivered for investors lately is positive earnings. The stock is down nearly 20% through 2024. The company’s top and bottom lines have also moved in the wrong direction.
I think UPS is poised for a turnaround. In Q2, it returned to U.S. volume growth for the first nine quarters in nine. The company’s profits should increase as it moves past the first year of its contract with the Teamsters, a deal that was heavily burdened with higher costs. UPS appears to be at an inflection point, presenting a great buying opportunity for income investors.
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Keith Speights has positions in Dominion Energy, Pfizer and United Parcel Service. The Motley Fool has positions in and recommends Moody’s, Pfizer and S&P Global. The Motley Fool recommends Dominion Energy and United Parcel Service. The Motley Fool has a disclosure policy.
3 High Yield Stocks You Should Be Buying in Masses in September was originally published by The Motley Fool
