Dividend yields have fallen over the past year due to the almost unabated rally in the stock market. The S&P500‘S The dividend yield has fallen to about 1.2%, close to the lowest level in about two decades. That is less than 1.6% at this moment last year, after a more than 30% rally in the broad market index.
While dividend yields are generally lower these daysthere are still some attractive income opportunities. Here are four top dividend stocks yielding more than 4% to boast this December.
Do you miss the morning spoon?Breakfast news delivers it all in one fast, silly and free daily newsletter. Register for free »
Brookfield Renewable(NYSE: BEPC)(NYSE:BEP) currently yields more than 4.5%. The largest global producer of renewable energy has increased its payout at a compound annual rate of 6% over the past two decades. It expects to achieve annual growth of 5% to 9% in the future.
Four catalysts are the driving force behind that plan. The company expects a combination of inflation-related rate increases on its existing power purchase agreements, margin improvement activities such as capturing higher market prices as older contracts expire, development projects and mergers and acquisitions to grow resources from operations.FFO) per share by more than 10% per year over the next ten years. That growth is very visible and secured through 2029, and increasingly visible and secured beyond that time frame. A big factor is the company’s huge backlog of development projects only should add 4% to 6% to its FFO per share every year through the end of the decade.
Chevron(NYSE: CVX) currently yields just over 4%. The oil giant has increased its dividend annually for 37 years in a row. Over the past five years, the payout has grown at a similar pace, including by 8% earlier this year.
The company currently expects annual free cash flow growth of more than 10% through 2027, assuming oil prices average $60 per barrel. That forecast is fueled by the high-return capital program, focused on investing in the growth of the lowest-cost, highest-margin assets. Meanwhile, the plan offers ample upside thanks to higher oil prices and the company’s acquisition strategy Heswith the latter having the potential to more than double its free cash flow by 2027. Chevron also has a well-protected downside thanks to its strong balance sheet. It has the capacity to continuing to invest in its operations, increasing dividends and buying back shares at the lower end of its annual target range of $10 billion to $20 billion, even as oil prices average $50 a barrel in the coming years.
Real estate income(NYSE:O) currently yields 5.5%. The real estate investment trust (REIT) has increased its dividend for 30 years in a row and for the past 108 quarters in a row. Since its IPO thirty years ago, the payout has increased at a compound annual rate of 4.3%.
The REIT expects to grow adjusted FFO per share by 4% to 5% annually in the futuredriven by rental growth and acquisitions. Realty Income has many ways to finance its expansion, including internally generated cash flow after paying dividends, capital recyclingits elite balance sheet, and its plans to tap private capital markets. Meanwhile, it is raking in billions of dollars in deals every yeargiving it many opportunities to expand its portfolio. That growth should allow the REIT to continue increasing its dividend.
Verizon(NYSE: VZ) currently yields more than 6%. The mobile and broadband giant has increased its payments for 18 consecutive years, the longest streak currently in the US telecom sector.
The company is a cash flow machine. It produces enough cash to invest in expanding its network and paying its high-yield dividend, while still having plenty of room to spare. That excess cash allows Verizon to maintain a strong balance sheet. It uses its financial power to buy Border communication in a $20 billion deal that will expanding its fiber optic network and revenues. The growth of that deal and the capital investments should allow Verizon to do that continue pushing the high-yield payout is even higher.
Brookfield Renewable, Chevron, Realty Income and Verizon are top dividend stocks. They offer high-yield payouts that allow them to continue growing in the future. That makes them great dividend stocks to buy right away in December to boost your dividend income.
Have you ever felt like you missed the boat on buying the most successful stocks? Then you would like to hear this.
On rare occasions, our expert team of analysts provides a “Double Down” Stocks recommendation for companies they think are about to pop. If you’re worried that you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia:If you had invested $1,000 when we doubled in 2009,you would have $358,460!*
Apple: If you had invested $1,000 when we doubled in 2008, you would have $44,946!*
Netflix: If you had invested $1,000 when we doubled in 2004, you would have $478,249!*
We’re currently issuing ‘Double Down’ warnings for three incredible companies, and another opportunity like this may not happen anytime soon.
See 3 “Double Down” Stocks »
*Stock Advisor returns December 2, 2024
Matt DiLallo holds positions at Brookfield Renewable, Brookfield Renewable Partners, Chevron, Realty Income and Verizon Communications. The Motley Fool holds positions in and recommends Chevron and Realty Income. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners and Verizon Communications. The Motley Fool has a disclosure policy.
4 Top Dividend Stocks Yielding More Than 4% to Buy Hand over Fist in December was originally published by The Motley Fool
