No asset class has matched equities' annualized returns for investors for over a century. Wall Street has thousands of tradable assets, including ETFs, to help investors of all risk levels build wealth. Buying and holding high-quality dividend stocks is one of the best methods to get money.
Hartford Funds' extensive paper "The Power of Dividends: Past, Present, and Future" evaluated how dividend equities beat non-payers across time last year.
Hartford Funds and Ned Davis Research found that dividend-paying firms had an average annual return of 9.18% from 1973 to 2022, while being 6% less volatile than the S&P 500. After 50 years, non-payers had a 3.95% average annual return, less than half that of dividend equities, and were 18% more volatile than the broad-based S&P 500.
Dividend-paying companies are usually successful and stable. These are the types of companies we expect to grow in value over time. When buying dividend stocks, income seekers don't have to accept low yields. Studies have shown that yield and risk tend to go hand-in-hand, thus high-yield stocks come with extra hazards, but good vetting can reveal big-time income nuggets.
Three outstanding ultra-high-yield equities with an average yield of 9.02% are screaming buys for April.
Pfizer yield: 6.05 The first high-yield dividend stock you may securely add to your portfolio in April is pharmaceutical giant Pfizer (NYSE: PFE).
The COVID-19 outbreak weighed Pfizer stock down to a decade-low. In the early phases of the pandemic, Pfizer's sales soared as one of the few businesses to create a COVID-19 vaccine (Comirnaty) and an oral pill (Paxlovid) to reduce its severity. After the worst, these medications' sales fell from $56 billion in 2022 to $8 billion this year.
Wall Street experts are struggling with this sales swing, but some investors have forgotten that Pfizer is financially better off than before the outbreak. Its extensive non-COVID therapeutic portfolio has grown organically, and its core COVID-19 lineup generates $8 billion in annual sales.
Without Comirnaty and Paxlovid, Pfizer's other new medication operating revenue rose 7% in 2023. The company expects 3% to 5% operating revenue growth in 2024 without Comirnaty and Paxlovid.
After acquiring cancer-drug producer Seagen, Pfizer's bottom line will drop $0.40 per share this year. This short hiccup will be replaced by cost reductions and a far better cancer-drug pipeline and product portfolio in 2025.
View for more updates