From Yahoo Finance: 2025-05-02 03:51:00

Dividend stocks have outperformed non-payers for over 50 years, but high yield can come with risk. Three discounted dividend stocks with yields from 6.4% to 12% offer potential for patient investors. Investing in high-quality dividend stocks can lead to long-term growth and financial success.

A study comparing dividend stocks to non-payers over 51 years found dividend payers had an annualized return of 9.2% vs. 4.31% for non-payers. Balancing risk and reward is crucial for income seekers. Three ultra-high-yield dividend stocks with an average yield of 8.63% present buying opportunities for savvy investors in May.

Pharmaceutical giant Pfizer, with a sustainable 7.5% yield, is a top pick among ultra-high-yield dividend stocks. Despite concerns about sales decline, Pfizer has shown significant revenue growth and strength in its non-COVID-19 product portfolio, making it a stronger company financially than four years ago.

Telecom titan Verizon Communications offers a nearly 6.4% yield and has opportunities for growth in the 5G wireless network. Verizon’s balance sheet has improved, with a shrinking unsecured debt, making it a solid investment. Historically cheap stock valuation adds to Verizon’s appeal as a bargain buy in May.

Under-the-radar business development company PennantPark Floating Rate Capital pays a monthly dividend with a yield of over 12%. By investing in debt securities of middle-market companies, PennantPark offers an attractive yield. The company’s focus on first-lien secured debt and discounted valuation make it a compelling choice for income seekers.

Before investing in Pfizer, consider other top stock picks from The Motley Fool’s Stock Advisor team. The team’s recommendations have historically outperformed the market, offering potential for significant returns. Join Stock Advisor to access the latest top 10 list and make informed investment decisions.



Read more at Yahoo Finance: 3 No-Brainer Ultra-High-Yield Dividend Stocks That Are Begging to Be Bought in May