3 High-Yield Dividend Stocks to Secure Before Year-End

Companies paying dividends are typically established and financially stable, making their stock prices less volatile than non-dividend-paying stocks. Therefore, high-dividend stocks, Pfizer Inc. (PFE), United Parcel Service, Inc. (UPS), and Enterprise Products Partners L.P. (EPD) might be worthy additions before year-end.

The annual inflation rate in the United States rose for a second consecutive month to 2.7% in November 2024 from 2.6% in October, which aligns with expectations. Low base effects from last year partly influence the rise. Amid economic uncertainties, high-dividend yield stocks offer an attractive investment opportunity for investors.

The advantage of receiving dividends enhances a stock's appeal, offering the potential for consistent dividend income along with capital growth. Moreover, investing in high-dividend yield stocks indicates that the company is financially robust and performing well.

Given these factors, let’s delve deeper into the fundamentals of the top dividend stocks.

Pfizer Inc. (PFE)

PFE discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States, Europe, and internationally.

On November 20, PFE received approval from the European Commission (EC) for HYMPAVZI for the routine prevention of bleeding episodes in patients 12 years of age and older weighing at least 35 kg with severe hemophilia A without FVIII inhibitors or severe hemophilia B without FIX inhibitors.

HYMPAVZI is the first and only anti-tissue factor pathway inhibitor approved by EC, and the approval will strengthen PFE’s position in the genetic disease treatment market.

On December 12, 2024, PFE declared an increase in the quarterly cash dividend on the company’s common stock to $0.43 for the first-quarter 2025 dividend, payable on March 7, 2025, to holders of the common stock of record at the close of business on January 24, 2025. 

PFE pays a $1.72 per share dividend annually, translating to a 6.72% yield on the current share price. Its four-year dividend yield is 4.32%.

PFE’s total revenues for the third quarter that ended September 29, 2024, increased 31.2% year-over-year to $17.70 billion. The company’s adjusted net income and adjusted EPS attributable to PFE common shareholders totaled $6.05 billion and $1.06 for the quarter, respectively.

Buoyed by its strong quarter performance, PFE raised its full-year 2024 revenue guidance to a range of $61 billion to $64 billion. It has also raised its adjusted EPS guidance to a $2.75 to $2.95 range.

Analysts expect PFE’s revenue and EPS for the fourth quarter (ending December 2024) to grow 20.9 and 369.1% year-over-year to $17.23 billion and $0.47, respectively. Also, the company topped the consensus EPS estimates in each of the four trailing quarters.

Shares of PFE have gained 6.6% over the past month to close the last trading session at $26.43.

PFE’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.   

PFE has an A grade for Growth and a B for Value and Sentiment. It is ranked #27 out of 153 stocks in the Medical - Pharmaceuticals industry.

For additional PFE’s Quality, Momentum, and Stability ratings, click here.

United Parcel Service, Inc. (UPS)

UPS is a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments: the U.S. Domestic Package and the International Package. 

UPS pays a $6.52 per share dividend annually, translating to a 5.1% yield on the current share price. Its four-year dividend yield is 3.30%.

UPS’ revenue for the third quarter that ended September 30, 2024, increased 2.6% year-over-year to $22.25 billion. Its operating profit came in at $1.99 billion for the same period. In addition, the company’s net income and EPS amounted to $1.54 billion and $1.80 per share, respectively.

Analysts expect UPS’ revenue and EPS for the fourth quarter (ending September 2024) to grow 1.7% and 2% year-over-year to $25.33 billion and $2.52, respectively.

Shares of UPS have declined 2.6% over the past three months to close the last trading session at $127.32.

UPS has an overall B rating, equating to a Buy in our proprietary rating system. UPS also has a B grade for Growth and Quality. It is ranked #4 out of 15 stocks in the Air Freight & Shipping Services industry. 

To see additional POWR Ratings for Momentum, Sentiment, Value, and Stability, click here.

Enterprise Products Partners L.P. (EPD)

EPD provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. It operates in four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services.

On October 29, EPD completed the second phase of its Texas Western Products system. Situated in Grand County, Utah, the facility is a refined products truck terminal catering to the Grand Junction, Colorado, and Moab, Utah, areas. It has a storage capacity of 400,000 barrels for gasoline and diesel and can load trucks at a rate of up to 20,000 bpd.

EPD’s annual dividend of $2.10 translates to a yield of 6.65% at the current share price. Its four-year average dividend yield is 7.47%. Moreover, the company’s dividend payouts have increased at a CAGR of 4.9% over the past three years. EPD has raised its dividends for 26 consecutive years.

During the third quarter of 2024, which ended on September 30, 2024, EPD’s total revenues increased 14.8% year-over-year to $13.78 billion, while its operating income rose 5% from the prior-year quarter to $1.78 billion. The company’s net income attributable to common unitholders amounted to $1.42 billion or $0.65 per unit, up 7.5% and 8.3% from the prior year’s quarter, respectively.

Furthermore, the company’s adjusted EBITDA grew 4.9% year-over-year to $2.44 billion, and its non-GAAP free cash flow rose 4.3% year-over-year to $907 million.

The consensus revenue estimate of $14.32 billion for the fourth quarter (ending December 2024). Also, its EPS is estimated to be $0.72. Further, EPD topped the consensus EPS estimates in three of the trailing four quarters.

Shares of EPD have gained 10.3% over the past six months and 19% over the past year, closing the last trading session at $31.29.

EPD’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

The stock has an A grade for Momentum and a B for Value and Stability. Within the MLPs - Oil & Gas industry, EPD is ranked #4 out of 22 stocks.

Click here to access additional ratings of EPD for Growth, Quality, and Sentiment.

What To Do Next?

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PFE shares were trading at $26.08 per share on Wednesday afternoon, down $0.35 (-1.32%). Year-to-date, PFE has declined -2.51%, versus a 26.97% rise in the benchmark S&P 500 index during the same period.

Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.

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