Income investors can't always be too picky about when they buy stocks. They sometimes need to put their money to work regardless of what's happening in the stock market or if there's uncertainty about upcoming elections.
However, income investors can always be picky about which stocks they buy. The good news is that there are several great options right now. Here are three high-yield dividend stocks to buy hand over fist in September.
1. Dominion Energy
Dominion Energy (NYSE: D) provides electricity or natural gas to over 4.5 million customers in 13 states. The company has especially large operations in its home state of Virginia and neighboring North Carolina.
Income investors should like Dominion Energy's forward dividend yield of 4.7%. Although the company cut its dividend payout in 2020 because of its high level of debt, management says that it's "100% committed to [the] current dividend" with "dividend security" ranking as one of the five key tenets of its business plan.
Dominion has taken positive steps to reduce its debt, thus increasing the reliability of its dividend. Those efforts were recognized in June with S&P updating its outlook on the company from negative to stable. The two other major credit rating agencies -- Fitch and Moody's -- also have stable outlooks for Dominion.
I think there are two key reasons to buy Dominion Energy stock in September in addition to its attractive dividend yield. The Federal Reserve is widely expected to cut interest rates this month, boosting utility stocks. 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 big pharmaceutical company had eight blockbuster drugs last year with dozens of others that generated over $100 million in annual sales.
With a forward dividend yield of roughly 5.9%, Pfizer definitely shouldn't be a stranger to income investors. CFO David Denton recently said that "sustaining and growing the dividend is number-one priority for us."
Yes, Pfizer has some challenges. Its COVID-19 product revenue has fallen significantly. The company also faces a patent cliff with key patents for several drugs expiring over the next few years.
However, I believe the worst is over for Pfizer on the COVID-19 revenue front. The drugmaker expects its business development deals to generate more than enough revenue to offset the effects of patent expirations. Pfizer's pipeline features lots of promising programs, notably including the obesity drug danuglipron. 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 well-known name. It's 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 things UPS delivers; the company also delivers juicy dividends to shareholders. Its forward dividend yield hovers around 5.1%. UPS has increased its dividend for 15 consecutive years.
What UPS hasn't delivered recently for investors is positive gains. The stock is down nearly 20% in 2024. The company's top and bottom lines have also trended in the wrong direction.
I think UPS is poised for a turnaround, though. In Q2, it returned to volume growth in the U.S. for the first nine in nine quarters. The company's profits should increase as it moves past the first year of its contract with the Teamsters labor union, a deal that was heavily front-loaded with higher costs. UPS appears to be at an inflection point, which presents a great buying opportunity for income investors.
Should you invest $1,000 in Dominion Energy right now?
Before you buy stock in Dominion Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dominion Energy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $630,099!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of September 9, 2024
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 to Buy Hand Over Fist in September was originally published by The Motley Fool