A Golden Opportunity for Income-Seeking Investors
The stock market has been on a tear lately, with the S&P 500 index soaring 57.1% since the end of 2022. However, this rapid growth has led to a dearth of high-yield dividend stocks, making it challenging for income-seeking investors to find attractive opportunities. Fear not, as there are still some gems to be found.
Infrastructure: A Bedrock for Growth
Brookfield Infrastructure, a leader in the infrastructure space, offers a compelling 3.6% dividend yield. With a proven track record of increasing its dividend payout for 15 consecutive years, investors can expect continued growth. The company’s diverse portfolio of energy, data, water, and freight transportation assets positions it well for long-term success. Additionally, Brookfield Infrastructure Partners offers a higher 4.6% yield, albeit with more complex tax implications.
Riding the Prescription Drug Wave
The pharmaceutical industry is a reliable source of growth, with Americans spending $405.9 billion on prescription drugs in 2022. AbbVie, one of the industry’s fastest dividend raisers, boasts a 3.6% yield. Despite recent pressure due to the loss of patent protection for its flagship drug Humira, AbbVie has several newly launched blockbusters driving earnings growth. Its psoriasis injection, Skyrizi, and oral arthritis drug, Rinvoq, have seen sales soar, offsetting Humira losses and paving the way for continued dividend growth.
A Unique Play on Pharmaceutical Growth
Royalty Pharma, a specialty financier, offers a 3.6% yield and a distinct approach to tapping into the pharmaceutical industry’s growth. By lending money to drugmakers in exchange for royalty stakes, Royalty Pharma has built a portfolio of 15 blockbuster drugs, including Trikafta, generating over $1 billion in annual sales. With a strong track record of dividend growth and a significant role in the industry, Royalty Pharma is poised for continued success.
Seizing the Opportunity
These high-yield dividend growth stocks offer a chance for income-seeking investors to secure a steady stream of passive income. By investing in Brookfield Infrastructure, AbbVie, and Royalty Pharma, investors can ride the waves of growth in the infrastructure and pharmaceutical industries, setting themselves up for long-term success.
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