In the ever-fluctuating realm of the stock market, savvy investors have turned their attention toward high-yield dividend stocks.
Dividend payments can be a stable source of income even when market storms loom large. It’s important to note that a dividend’s worth is tied to the firm behind it.
While dividends can be a boon, dividend cuts signal a company’s retreat during fiscal challenges. Hence, the key is to identify the best high-yield dividend stocks that can effectively guarantee short-lived payouts and dependable income streams for years to come.
In streamlining the process, I’ve employed the GuruFocus screener, pinpointing stocks with a dividend yield of over 4% and an impressive 3-year dividend growth exceeding 30%.
Dive in as we explore these high-yield dividend stocks and shed light on some of the leading dividend-paying stocks in today’s market.
Anglo American (NGLOY)
Anglo American (OTCMKTS:NGLOY) has been under the investor microscope of late and not in a flattering light.
The stock is down by double-digit margins this year, reflecting the struggles of a shaky global macro economy and plummeting metal prices. Its second-quarter report painted a stark picture, a 40% nosedive in its underlying EBITDA and significantly lower profits.
However, if China rolls out its expected fiscal stimulus, the tides could shift for metal prices and demand, reinvigorating Anglo’s position at the back end of the year and making it one of the high-yield dividend stocks to have in your portfolio.
Interestingly, while the firm experienced setbacks in coking coal and platinum group metals, its new Quellaveco copper mine in Peru tells a different tale.
This mining marvel is robustly ramping up and targets a copper production of 310,000 to 350,000 metric tons for 2023. Moreover, despite recent hiccups, Anglo remains steadfast, projecting an upswing in metal production volumes for the year’s second half.
Devon Energy (DVN)
Amid the trials and tribulations faced by the energy sector, Devon Energy (NYSE:DVN) emerges as a beacon for investors with a long-term perspective.
A glance at Devon Energy’s recent achievements adds weight to a bullish perspective. It clocked a remarkable second-quarter oil production, churning out 323,000 barrels daily. Its third-quarter projections hint at an even more bullish figure of 330,000 barrels. Layer that up with its aggressive stock buyback strategy, having reacquired 3.8 million shares in the second quarter, and you’ve got a company passionately driving shareholder value.
The company recently retired a substantial $242 million in debt post the second quarter. With a fortified balance sheet and a growing dividend yield hovering over 8%, DVN stands resilient against market uncertainties.
With the Federal Reserve not forecasting any imminent U.S. recession, oil and gas demand is primed to soar. Hence, according to its CEO, the coming years, especially 2024, look incredibly bright for Devon, which is why it’s one of the high-yield dividend stocks to buy and hold now.
Newmont (NYSE:NEM) is a renowned metals and mining behemoth, standing tall in discussions about stocks poised to combat inflation.
Newmont’s gold operations could shimmer brighter than ever should inflationary tides surge further. Historically, gold has been a trusted bulwark against spiraling inflation, serving as an investor’s sanctuary during turbulent times.
Yet, the latest second-quarter reports threw a curveball, with gold production dipping 17% year-over-year and all-in sustaining costs for the gold segment on an uptrend.
However, looking beyond this blip, Newmont’s horizon glows with incredible potential, particularly if the company seals the deal on its anticipated Newcrest acquisition. This merger would solidify Newmont’s supremacy as the world’s premier gold producer, with a forecasted 9.4 million ounces for 2023.
It’s also a strategic move towards diversification, which is why it is one of the better high-yield dividend stocks in the mining space.
Presently, a substantial 60% of Newmont’s yield springs from the U.S. Enter Newcrest, with its diversified assets spanning Australia, Indonesia, and Papua New Guinea, and Newmont stands to achieve a more balanced portfolio.
Amidst the glitterati of the gold mining industry, B2Gold (NYSEAMERICAN:BTG) presents a shining example of a powerful performance and a forward-thinking approach. B2Gold has mining operations across diverse terrains, spanning Mali, Namibia, and the Philippines. It recently posted its second-quarter earnings, revealing impressive figures and a financial narrative that’s hard to overlook.
B2Gold second-quarter sales were at an impressive $470.8 million, up a remarkable 23.3% year-over-year, comfortably exceeding expectations by $9.79 million.
Gold production reached 262,701 ounces, and the firm projects total gold production between 1,000,000 to 1,080,000 ounces, along with annual consolidated cash operating costs at $670 to $730 per ounce.
What makes it one of the great high-yield dividend stocks is that the company boasts a debt-free statement, with an enviable net cash position north of $500 million and a forthcoming gold mine slated for production in 2025.
This venture is poised to supercharge B2Gold’s production by a commendable 20%.
Pioneer Natural Resources (PXD)
Pioneer Natural Resources (NYSE:PXD) isn’t just any name in the energy sector, it’s a beacon of astute management and future promise.
The firm is renowned for its adept independent oil and gas production abilities, drawing nearly two-thirds of its revenue from oil production. It’s proven remarkably resilient company, even amidst a tepid natural gas market.
With a management team dedicated to robust cash returns and a fortified balance sheet, Pioneer possesses a diversified toolkit to boost shareholder value.
Speaking of commitment, Pioneer isn’t merely content with lofty promises. The company is hands-on, directly channeling 75% of its quarterly free cash flow into dividends and buybacks, which is why it’s one of the better high-yield dividend stocks out there.
Shareholders were treated to a generous dividend of $5.58 per share in the first quarter, followed by $3.34 in the second, accumulating to almost $9 within the year’s first half alone.
Pair that with the recent quarter’s stellar earnings and revenue beat, and Pioneer Natural Resources shines brightly as an energy stalwart poised for big gains ahead.
Innovative Investment Properties (IIPR)
In the vast realm of real estate investment trusts, Innovative Investment Properties (NYSE:IIPR) has emerged as a top player in the cannabis space.
The REIT became the first to pivot its strategy toward the burgeoning medical marijuana industry, effectively carving a niche that’s as unique as it is promising.
With a sprawling portfolio of over 108 properties spread across 19 different states and an impressive 8.9 million rentable square feet, IIPR isn’t just playing the game; it’s redefining it.
When you factor in the captivating yield of more than 8.5% and $7.20 per share payout for this year, it appears incredibly alluring.
Furthermore, ensuring a steady income stream, its long-term leases boast an average span of 15 years.
Layer that up with a dazzling 37% growth in 3-year average funds-from-operations, a figure dwarfing the sector’s median by an astounding 1,860%, and it’s clear that IIPR is poised to long-term expansion ahead.
Eramet (OTCMKTS:ERMAY) is a mining behemoth that continues to make calculated strides aspiring to become a battery metal giant.
Having dominated the realms of manganese and nickel, it’s now focused its efforts on the lithium frontier. A recent price dip for manganese alloys and class II nickel may have weighed down results for lesser enterprises.
Still, for Eramet, it’s a mere speed bump on the route to seizing the fast-evolving electric vehicle market.
By the conclusion of the current decade, every second car rolling out could be electric, be it fully or partially. Such a transformative shift signifies a gold rush for battery metals. Moreover, nickel demand is poised to see a twofold surge, while lithium might experience a staggering six-fold leap by 2030.
Also, Eramet’s financials are nothing short of spectacular, boasting unwavering profitability metrics marked by growing expanding margins over the past several years. And with a stock yield north of 4.4%, this mining titan aligned impeccably with future market trajectories.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines