Top-Performing Dividend Shares for December 2024's Investment Opportunities

Top-Performing Dividend Shares for December 2024's Investment Opportunities

There isn't an established set definition for a high-yield dividend stock. Majority of investors generally categorize it as a stock offering a dividend yield surpassing common benchmarks, such as the S&P 500 index or a 10-year U.S. Treasury note.

Towards the end of 2024, the average dividend yield on the S&P 500 stood around 1.2%, marking its lowest level in more than two decades. On the contrary, the yield on the 10-year Treasury note hovered around 4.2%, which was relatively high compared to previous years due to the Federal Reserve maintaining interest rates at elevated levels.

As a result, many investors may consider a stock as high-dividend yielding if it doubles the S&P 500's yield, or if its returns are equivalent to the 10-year Treasury note's yield.

Nevertheless, investors should not solely base their stock purchase decisions on dividend yields. It is crucial to ensure the dividend payments are sustainable and that the company offering the dividends is financially sound with strong cash flow, a robust balance sheet, and evident growth potential.

Here are 20 high-yield dividend stocks to consider buying for dividend income in 2024:

20 high-yield dividend stocks

20 high-yield dividend stocks to watch

(NYSE:ABBV)

| High-Yield Dividend Stock | Ticker | Annual Dividend Amount | Dividend Yield || --- | --- | --- | --- || AbbVie | (NYSE:ABBV) | $6.56 | 3.7% || Mid-America Apartment Communities | (NYSE:MAA) | $5.88 | 3.7% || Brookfield Infrastructure | (NYSE:BIP)(NYSE:BIPC) | $1.64 | 3.8% || Brookfield Renewable | (NYSE:BEP)(NYSE:BEPC) | $1.42 | 4.7% || Duke Energy | (NYSE:DUK) | $4.20 | 3.7% || Crown Castle | (NYSE:CCI) | $6.28 | 6.1% || Chevron | (NYSE:CVX) | $6.52 | 4.1% || Enbridge | (NYSE:ENB) | $2.68 | 6.2% || Enterprise Products Partners | (NYSE:EPD) | $2.08 | 6.4% || Gilead Sciences | (NASDAQ:GILD) | $3.08 | 3.4% || Healthpeak Properties | (NYSE:PEAK) | $1.20 | 5.6% || Regions Financial | (NYSE:RF) | $1.00 | 3.9% || Extra Space Storage | (NYSE:EXR) | $6.48 | 4.0% || Whirlpool | (NYSE:WHR) | $7.00 | 5.7% || Pfizer | (NYSE:PFE) | $1.68 | 6.4% || VICI Properties | (NYSE:VICI) | $1.72 | 5.4% || Realty Income | (NYSE:O) | $3.16 | 5.6% || Verizon Communications | (NYSE:VZ) | $2.72 | 6.3% || T. Rowe Price | (NASDAQ:TROW) | $4.96 | 4.0% || Kenvue | (NYSE:KVUE) | $0.80 | 3.6% |

$6.56

The following outlines the reasons why each of these high-yield dividend stocks could be considered enticing investment options in 2024:

3.7%

Dividend stocks 1-5

1. AbbVie

(NYSE:MAA)

Since its spinoff from Abbott Labs in 2013, pharmaceutical company AbbVie has boasted an impressive dividend history. It has boosted its dividend payout by an astounding 310% altogether over this period. AbbVie has managed to keep up this legacy of dividend growth by consistently raising its payout each year.

$5.88

AbbVie has dedicated significant resources to developing new medications. It invests around 15% of its revenue in research and development (R&D). Furthermore, the company has completed several high-value acquisitions, including the acquisition of Cerevel Therapeutics in late 2024, to replenish its pipeline and fuel future growth. This positions AbbVie well to continue providing stable dividend income.

3.7%

As a prominent name in the U.S. multi-family housing sector, Mid-America Apartment Communities (MAA) derives significant benefits from the consistent rental income it collects, bolstering its high-yielding dividend payout. Known as a Real Estate Investment Trust (REIT), MAA boasts an impressive financial standing. This financial stability empowers MAA to extend its apartment property portfolio through development and acquisitions of new communities.

MAA has never once halted or decreased its dividend distribution, a testament to its consistency, since its 1994 public debut. As of the end of 2024, MAA had elevated its dividend allocation a remarkable 14 times in succession. Given the ongoing growth of demand for apartments, the REIT is expected to maintain its upward trajectory in dividend increases in the forthcoming years.

(NYSE:BIP)(NYSE:BIPC)

3. Brookfield Infrastructure

$1.64

Brookfield Infrastructure oversees a diverse portfolio of infrastructure assets, spanning utilities, transportation, energy (midstream), and data. The steadiness of the cash flows generated by these businesses supports the growing dividend payouts. Brookfield Infrastructure took home its 15th consecutive yearly dividend increase at the beginning of 2024. Over the past decade, it has grown its dividend by a 9% compound annual growth rate.

3.8%

Brookfield aims for an annual dividend enhancement of 5% to 9% for the long term, fueled by the organic growth of its current ventures and acquisitions. The organic growth facilitators - inflation-linked rate increases, escalation in global economic activity, and expansion projects - are estimated to boost its Funds from Operations (FFO) per share beyond 10% percent annually over the coming years.

Meanwhile, future acquisitions are anticipated to fortify the company's bottom line. Brookfield often recycles capital by selling mature enterprises and reinvesting the income obtained into higher-yielding new projects.

(NYSE:BEP)(NYSE:BEPC)

4. Brookfield Renewable

$1.42

Brookfield Renewable entails a sibling company of Brookfield Infrastructure, controlled by Brookfield Corporation (BN 0.28%).

4.7%

This Brookfield subsidiary focuses on renewable energy sources, including hydropower, wind, solar, and energy storage facilities. These assets generate a steady flow of cash, secured by long-term power purchase agreements with utilities and other consumers, underpinning Brookfield's high-yield dividend.

Brookfield Renewable has boosted its payout at a 6% compound annual growth rate henceforth 2001. In 2024, the company raised its dividend by at least 5% annually for the 13th consecutive year. Brookfield Renewable envisions growing its dividend at an annual percentage rate of 5% to 9% over the long term. The factors driving this expectation include its organic growth initiatives, such as an expansive pipeline of new renewable energy projects, and acquisitions. Brookfield Renewable projects a 10% plus annual increase in its FFO per share through 2029.

(NYSE:DUK)

5. Duke Energy

$4.20

Duke Energy stands as a leading electricity utility. Its extensive electric substations serve 8.4 million customers in six states, while its natural gas utility providers gas to 1.7 million customers in five states. The constancy of cash flows generated by these businesses is backed by regulatory-approved fee structures. This allowed Duke to consistently pay dividends to investors since 1922, as of late 2024.

3.7%

Duke's large-scale investment program targets expansion of its transmission and distribution network. These investments are projected to increment its earnings per share by 5% to 7% annually through 2028. Earnings growth is expected to sustain the utility's dividend enhancements.

Dividend stocks 6-10

(NYSE:CCI)

6. Crown Castle International

$6.28

Crown Castle is a REIT specializing in owning communications infrastructure in the U.S., including cell towers, small cells, and fiber-optic networks. These resources are critical to supporting the mobile industry's next-generation network: 5G. Crown Castle envisions an enduring opportunity for investing in new 5G-related infrastructure.

6.1%

Although the company faces near-term challenges, it aims to recommence its dividend growth after 2025. Since 2016, Crown Castle has elevated its dividend payment at a 9% compound annual rate.

7. Chevron

(NYSE:CVX)

Chevron's primary financial priority is maintaining and expanding its dividend. The company achieved its 37th consecutive annual dividend increase in 2024, boasting one of the longest streaks among oil stocks. Chevron has grown its dividend at a 6% compound annual rate over the last 15 years.

$6.52

Its integrated operations, low-cost oil business, and lower-carbon energy investments position Chevron to sustain and escalate its dividend. Chevron has also been an active acquirer, buying PDC Energy and agreeing to purchase Hess (HES 0.1%). These deals are expected to boost the company's cash flow and growth potential. As a result, Chevron has commenced accelerating its dividend growth rate, raising its payments by 8% in early 2024.

4.1%

8. Enbridge

Enbridge, a notable Canadian oil pipeline corporation, excels as a remarkable dividend stock. It has consistently distributed dividends for more than 69 years, while increasing its payout annually for the past 30 years.

(NYSE:ENB)

While the world moves towards transitioning its fuel supply from oil to cleaner alternatives, Enbridge adapts by investing in infrastructure to support natural gas projects and renewable energy. These investments have the company on course to enhance its cash flow per share with a mid-single-digit annual rate for the next several years, which will sustain its dividend growth.

$2.68

9. Enterprise Products Partners

6.2%

Enterprise Products Partners holds a prominent position in the midstream oil and gas market. This master limited partnership (MLP) has increased its dividend payment annually for more than two decades.

The corporation continues to pour substantial funds into amplifying its midstream operations. It currently has numerous billion-dollar significant infrastructure projects in progress, with several of them set to commence commercial operation by 2026. Additionally, it boasts a history of smart acquisitions that have consistently added value. These ongoing and prospective investments are expected to fuel the organization's continued growth and enable it to enhance its dividend payouts.

(NYSE:EPD)

Gilead Sciences

$2.08

Gilead Sciences boasts a noteworthy dividend yield in the biotechnology sector. The company has consistently increased its payout yearly since initiating it in 2015, marking an impressive run. Its significant HIV portfolio serves as the backbone of its biotech operations.

6.4%

Beyond its HIV focus, the company also develops cutting-edge medicines for preventing and treating various viral infections, including COVID-19 and certain types of cancer. Furthermore, its pipeline is brimming with promising medications that should contribute to future sales growth.

Dividend Stocks 11-15

(NASDAQ:GILD)

11. Healthpeak Properties

$3.08

Healthpeak Properties, a prominent healthcare real estate investment trust (REIT), possesses a diverse portfolio of healthcare properties, including medical offices, research facilities, retirement homes, and other properties. Leveraging the income generated through rental payments, it has the financial means to offer a lucrative dividend.

3.4%

Recently, Healthpeak Properties merged with Physicians Realty Trust garnering an even larger footprint in the healthcare real estate sector. This merger is expected to bolster its medical office building portfolio, significantly strengthening its capacity to pay dividends.

12. Regions Financial

(NYSE:PEAK)

Regions Financial ranks among the country's leading banks, with a primary focus on the Southern and Midwestern regions. A long-standing champion of dividends, the company was compelled to reevaluate its payout plan during the 2008-09 financial crisis. However, it has since seen a multi-fold increase in its dividend tier, offering another increment of 4.2% in 2024. With its financial services industry continuing to flourish, Regions Financial has ample potential to continue expanding its generous dividend payouts.

$1.20

13. Extra Space Storage

5.6%

Extra Space Storage is a REIT that excels in managing self-storage facilities. It has distinguished itself as one of the top-performing REITs within the past decade. A significant contributor to its success is its continually increasing dividend, which has surged by an eye-popping 245% over the last decade. Further growth seems likely following its acquisition of LifeStorage for $15 billion in 2023, which significantly expanded its scale, becoming the sector leader, and introducing new growth prospects.

14. Whirlpool

(NYSE:RF)

With a storied history dating back 70 years, Whirlpool has uninterrupted paid dividends during that time frame. Although the appliance manufacturer has not experienced annual dividend growth, it has maintained its current high yield since 2022. Over the past decade, it has increased its dividend by more than 100%.

$1.00

Should the company resume its dividend growth streak in the future, it has been implementing cost-cutting measures and boosting its investment in innovation to ultimately amplify its free cash flow. It aims to hit a 7% free cash flow-to-sales ratio by 2026, a substantial increase from its current 3% rate. This growing cash flow could provide Whirlpool with the resources required to increase its dividend.

3.9%

15. Pfizer

Pfizer boasts a history of dividend payments that stretches back 345 consecutive quarters, furthering its payout in each of the last 15 years. Its investment in research and development has proven fruitful, resulting in breakthrough innovations.

(NYSE:EXR)

The company excelled in developing a COVID-19 vaccine, followed by a successful oral treatment. These successes have bolstered Pfizer's research and development budget and strategically propelled it to acquire Seagen in 2023 for $43 billion, intended to combat cancer. These investments should lead to an expansion of the company's cash flow, ensuring that it will be able to continue financing future dividend payouts.

$6.48

Dividend Stocks 16-20

4.0%

16. VICI Properties

VICI Properties is a REIT that specializes in experiential real estate, encompassing casinos and entertainment venues. Under long-term triple net leases (NNN), it leases these properties back to the established operators.

(NYSE:WHR)

These agreements provide a stable revenue stream through annual rent increases. Adding to its income, it continually invests in new gaming and non-gaming real estate. VICI Properties has incremented its dividend payout in each of the past seven years since its inception. Its annual dividend growth has outpaced the sector's 2.2% average with a robust 7% compound annual growth rate since 2018.

$7.00

Communications giant Verizon has consistently been a reliable income source over the years. The company managed to uphold its 18-year-long streak of annual dividend boosts in 2024, making it the longest-running streak in the United States' telecom sector. Verizon's investments towards transitioning its mobile network to 5G, promising faster data speeds for customers, should enable the company to continue enhancing its dividends. In 2024, Verizon inked a $20 billion deal to acquire Frontier Communications**, a move that will enhance the size of its fiber operations and boost its earnings.

5.7%

19. T. Rowe Price

Mutual fund manager T. Rowe Price has built a reputation for its consistent dividend payments. The company upped its payout by 1.6% in early 2024, marking its 38th consecutive year of dividend growth. This growth trajectory is expected to continue as the firm expands its assets under management** (AUM) and attracts more funds from its clients.

(NYSE:PFE)

20. Kenvue

$1.68

Kenvue, a newcomer to dividend payments, debuted its dividend scheme in 2023, following its separation from medical giant Johnson & Johnson. As a Dividend King with a 60-year legacy of dividend increases, its former parent company has left a significant dividend-paying legacy that Kenvue might potentially carry on. The company boasts an impressive portfolio of renowned healthcare brands and maintains a healthy balance sheet, both of which support its dividend growth.

6.4%

Related investing topics

**#### Top Dividend Stocks to Buy & Hold in 2024

(NYSE:VICI)

These companies offer regular payouts, making them excellent income generators.****#### Dividend Achievers List

$1.72

These companies have maintained a streak of dividend increases for at least 10 years.****#### Dividend Kings of 2024

5.4%

These companies have increased their dividends annually for over 50 years.****#### How Often Are Dividends Paid on Stocks?

Frequencies of dividend payments on stocks.

(NYSE:O)

Generous income now, more in the future

$3.16

All 20 of these dividend stocks provide substantial yields, distinguishing them in a period when many companies provide low dividends. Their steadfast record of dividend increases, without any signs of slowing down, makes them excellent long-term income stocks.

5.6%

FAQ

High-yield dividend stocks FAQ

(NYSE:VZ)

Which stock offers the highest dividend yield?

$2.72

Walgreens Boots Alliance (NASDAQ: WBA) provided the highest dividend yield among S&P 500 stocks in 2024, surpassing 10%. Despite reducing its dividend by nearly 50% earlier in the year, its yield remained considerable, suggesting investors anticipate another significant dividend cut as the drugstore giant strives to improve its faltering operations.

6.3%

Are high-yield dividend stocks a worthwhile investment?

High-yield dividend stocks can be advantageous for numerous investors due to their attractive income streams that increase steadily as the company raises its dividend. These stocks can be an attractive option for retired individuals or those looking for supplementary investment income.

(NASDAQ:TROW)

However, a high dividend yield may also indicate a higher risk profile. Investors must ensure that the company can sustain and boost its dividend over the long term.

$4.96

What constitutes a good dividend yield for a stock?

4.0%

A good dividend yield for a stock can depend on various factors, including its cash flow stability, capital demands, and financial health. In 2024, the average dividend yield of S&P 500 stocks was less than 1.5%. A stock would need a yield of at least that level to be considered attractive compared to other options.

What are the 10 top dividend stocks?

(NYSE:KVUE)

The 10 highest-yielding dividend stocks in 2024 were:

$0.80

• AbbVie
• Brookfield Infrastructure
• Brookfield Renewable
• Duke Energy
• Chevron
• Enbridge
• Enterprise Products Partners
• Regions Financial
• Realty Income
• Verizon Communications

3.6%

These well-known companies provided higher-yielding dividends that have consistently increased.

Matthew DiLallo holds positions in 3M, AvalonBay Communities, Brookfield Corporation, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, Chevron, Crown Castle, Enbridge, Enterprise Products Partners, Gilead Sciences, Johnson & Johnson, Kenvue, Realty Income, Regions Financial, T. Rowe Price Group, Verizon Communications, and Vici Properties. Our website has a stake in and recommends Abbott Laboratories, Brookfield Corporation, Brookfield Infrastructure, Crown Castle, Enbridge, Gilead Sciences, Kenvue, Pfizer, and Realty Income. Our website recommends 3M, AvalonBay Communities, Brookfield, Brookfield Infrastructure Partners, Brookfield Renewable Partners, Chevron, Duke Energy, Enterprise Products Partners, Extra Space Storage, Healthpeak Properties, Johnson & Johnson, Physicians Realty Trust, Regions Financial, T. Rowe Price Group, Verizon Communications, and Vici Properties and recommends the following options: long January 2026 $13 calls on Kenvue. Our website has a disclosure policy.

In light of the financial analysis presented, investors might consider diversifying their portfolios by investing in high-yield dividend stocks. For instance, one might consider purchasing shares in AbbVie, as its continuous growth in dividend payouts and commitment to research and development could yield attractive returns.

Furthermore, considering the consistency of Mid-America Apartment Communities (MAA) in increasing its dividend allocation and bolstering its apartment property portfolio through acquisitions, investors could view this as a promising investment opportunity.

Investing in these high-yield dividend stocks requires careful research and consideration of a company's financial health, future growth prospects, and dividend sustainability. In the case of AbbVie and MAA, investors may find that their strong dividend histories and financial stability make them compelling options for income-seeking investors in 2024.

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