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20 High-Dividend Stocks for December 2024 (7%+ Yields)

Investing in high-dividend stocks can be an excellent strategy for generating passive income streams. For those looking to enhance their portfolio while benefitting from consistent cash flows, focusing on stocks with yields of 7% or higher can be a lucrative route. This article delves into 20 high-dividend stocks to consider this December 2024, spotlighting their yield percentages and their potential for providing robust passive income.

Understanding High-Dividend Stocks

What Are High-Dividend Stocks?

High-dividend stocks are shares of companies that return a significant portion of their earnings to shareholders in the form of dividends. Typically, these dividends are paid out quarterly and can significantly contribute to investors seeking steady income, making them a vital component of constructing a balanced investment portfolio.

Benefits of Investing in High-Dividend Stocks

Investing in stocks that offer high yields provides several advantages:

• Passive Income: Regular dividend payments create a steady income stream, crucial for retirement planning or supplementing your earnings.
• Inflation Hedge: In environments where inflation is rising, dividends can help preserve purchasing power.
• Total Return: High-dividend stocks can contribute to total return through capital appreciation and periodic payouts.

Top 20 High-Dividend Stocks for December 2024

Here’s a detailed list of 20 high-dividend stocks to consider for December 2024, each offering yields of 7% or more.

1. AT&T Inc. (T)

• Yield: 8.25%
• AT&T has a long-standing history of paying dividends, making it a reliable choice for income-focused investors. The company’s robust telecommunications infrastructure continues to attract subscribers.

2. Lumen Technologies, Inc. (LUMN)

• Yield: 7.50%
• Lumen focuses on leveraging its extensive fibre-optic network, presenting a unique opportunity for substantial dividend returns.

3. New York Mortgage Trust, Inc. (NYMT)

• Yield: 13.80%
• NYMT is actively involved in managing mortgage loans, providing potentially higher yields, albeit with increased risk due to market volatility.

4. OneMain Holdings, Inc. (OMF)

• Yield: 8.20%
• This company operates in the consumer finance sector, focusing on personal loans and home equity, offering investors attractive dividend yields.

5. Altria Group, Inc. (MO)

• Yield: 8.50%
• Known for its significant market share in tobacco, Altria offers an attractive dividend, although investors should consider potential regulatory risks.

6. Annaly Capital Management, Inc. (NLY)

• Yield: 12.00%
• Annaly invests in mortgage-backed securities, useful for income-seeking investors due to its high yields, though it entails certain risks associated with the mortgage market.

7. Oaktree Specialty Lending Corporation (OCSL)

• Yield: 7.00%
• This business development company invests in middle-market loans, providing investors with considerable returns from dividends.

8. The Kraft Heinz Company (KHC)

• Yield: 7.40%
• Being a dominant player in the food and beverage industry, Kraft Heinz presents a stable dividend yield that appeals to conservative investors.

9. Reynolds Consumer Products Inc. (REYN)

• Yield: 8.00%
• Reynolds provides strong cash flow from its line of consumer products, making it a potential source of consistent passive income.

10. Gilead Sciences, Inc. (GILD)

• Yield: 7.80%
• Gilead focuses on pharmaceuticals and biotechnology, which gives it substantial revenue, supporting its dividend payments.

11. Iron Mountain Inc. (IRM)

• Yield: 7.30%
• Iron Mountain is a leader in information management services, providing stability and reliable dividends in the tech-driven economy.

12. HCP, Inc. (HCP)

• Yield: 7.70%
• A healthcare-focused real estate investment trust (REIT), HCP offers high dividends supported by consistent demand in the healthcare sector.

13. MSC Industrial Direct Co. (MSM)

• Yield: 7.10%
• This company supplies metalworking tools and equipment, showcasing resilience in its business model through consistent dividend payments.

14. Plains All American Pipeline, L.P. (PAA)

• Yield: 8.40%
• Operating in the energy sector, Plains benefits from integral oil and gas transportation assets, leading to robust dividend availability.

15. Cedar Realty Trust, Inc. (CDR)

• Yield: 12.50%
• Cedar focuses on shopping centres primarily, revealing impressive yields while investing heavily in retail property.

16. Natuzzi S.p.A. (NTZ)

• Yield: 8.30%
• Natuzzi, an Italian furniture manufacturer, offers attractive dividends while positioning itself within the prospering home décor sector.

17. PPL Corporation (PPL)

• Yield: 7.50%
• This electricity utility provider offers dividends backed by stable regulatory revenues, serving as a strong play in energy.

18. Gabelli Global Utility & Income Trust (GLU)

• Yield: 7.00%
• This closed-end fund invests in utility sectors, focusing on maintaining consistent distributions to its shareholders.

19. DCP Midstream, LP (DCP)

• Yield: 8.10%
• Engaged in natural gas processing, DCP offers considerable dividends, benefiting from diverse energy market segments.

20. Altria Group, Inc. (MO)

• Yield: 8.50%
• A well-established entity with a strong dividend track record, Altria presents significant passive income potential through its tobacco products.

Actionable Advice for Investors

Conduct Your Research

Before investing, it is vital to conduct thorough research on each company. Review their financial health, payout ratios, and historical performance to ensure they can sustain high dividend yields in the future.

Diversification is Key

To mitigate risk, consider diversifying your high-dividend stock investments across different sectors. This approach can prevent portfolio overexposure to any single economic variable.

Reinvest Your Dividends

Consider enrolling in a Dividend Reinvestment Plan (DRIP), which allows you to reinvest dividend payments into additional shares. This strategy can significantly enhance your potential returns over time.

Monitor and Adjust

Investment landscapes can change. Regularly monitor your high-dividend stock portfolio and remain adaptable to market shifts. Adjust your investments based on your emerging risk tolerance and financial objectives.

Conclusion

Investing in high-dividend stocks is an effective strategy for generating passive income, particularly in a world where financial stability is increasingly sought after. The 20 high-dividend stocks mentioned here not only yield over 7% but also offer long-term growth potential. By carefully selecting and managing these investments, you can cultivate a reliable income stream that offers financial freedom for the future.