Unlock the Power of Predictable Income with These 2 High-Yield Dividend Stocks
In a world where market volatility can be unpredictable, companies with high dividend yields offer a beacon of hope for investors seeking stable returns. The key to success lies in identifying companies that can afford their payouts and have a clear runway for future earnings growth.
United Parcel Service: A Delivery Giant with a Promising Future
UPS is poised to report its third-quarter 2024 earnings on October 24, and with its stock trading less than 9% from its four-year low, it’s a “show me” quarter for the delivery giant. In its last quarterly report, UPS guided for full-year consolidated revenue of $93 billion, a consolidated operating margin of 9.4%, and capital expenditures of $4 billion.
Despite pulling back on spending to cut costs and restore its margins, UPS has announced new three-year financial targets, including $108 billion to $114 billion in consolidated revenue by 2026 and an adjusted operating margin above 13%. While its three-year targets may seem out of reach, UPS has already taken steps in the right direction, returning to domestic volume growth for the first time in nine quarters.
With a hefty 4.9% yield and management’s commitment to maintaining its current payout, UPS is an attractive option for investors seeking predictable income.
Kinder Morgan: A Pipeline Powerhouse with a Bright Future
Kinder Morgan’s stock price has surged over 40% year to date, yet it still yields an impressive 4.6%. The company’s pipeline and infrastructure assets are poised to benefit from increased natural gas domestic demand and higher exports to Mexico and overseas.
As a leader in the energy sector, Kinder Morgan generates plenty of cash to reinvest in its business and fuel its growing payout. While concerns about the shift towards renewables remain, there are signs that natural gas will remain a vital part of the energy mix in the medium term.
With its strong cash flow and commitment to its dividend, Kinder Morgan is a reliable high-yield dividend stock to consider now.
Don’t Miss Out on These Opportunities
In a world where market volatility can be unpredictable, these two high-yield dividend stocks offer a chance to generate passive income and achieve long-term success. Don’t miss out on the opportunity to invest in these companies and create a brighter financial future.
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