3 High-Yield Dividend Stocks to Buy Hand Over Fist in October

When is the best time to buy high-yielding dividend stocks? The best answer for income investors is probably as quickly as possible. The earlier you invest, the sooner the dividends start flowing.

However, some stocks are better than others at different times. As we enter the final quarter of 2024, I think a few stocks stand out in particular. Here are three high-yielding dividend stocks to buy first in October.

1. Enterprise Products Partners LP

Enterprise Products Partners LP (EPD -0.24%) is one of the leading midstream energy service providers in North America. The limited partnership (LP) operates more than 50,000 miles of pipelines, liquid storage facilities, natural gas processing facilities and more.

Income investors love it with Enterprise Products Partners. Its forward distribution yield is 7.2%. Even better, Enterprise has increased its distribution for 26 consecutive years.

The midstream company is in a great position to keep distributions flowing and growing. Enterprise Products Partners boasts a strong balance sheet with respectable A- and A3 credit ratings reflecting low default risk. Its cash flow has also been resilient over the years, even during the financial crisis of 2007 and 2008, the oil price crash of 2015 to 2017, and the COVID-19 pandemic of 2020 and 2021.

Enterprise Products Partners is not likely to be a high growth stock, but it still has pretty good growth prospects. The company currently has approximately $6.7 billion of major growth capital projects under construction. U.S. crude oil, natural gas and liquids production is expected to increase through the end of the decade, with a significant portion exported to other countries. Demand for Enterprise pipelines and other midstream assets should remain strong.

2. Real estate income

Real estate income (A 1.10%) ranks seventh largest real estate investment trust (REIT) in the world. It owns 15,450 commercial real estate properties that are leased to a diverse group of clients spanning 90 industries.

The REIT pays a monthly dividend with a forward yield of 5%. Realty Income has increased its dividend for 29 consecutive years at a compound annual growth rate (CAGR) of 4.3%.

A key to Realty Income continuing this impressive streak is maintaining high occupancy. The company has done a great job on both fronts in the past. Average historical occupancy for real estate income is an industry-leading 98.2%, with the lowest year-end occupancy at 96.6%.

Growth should not be a problem for Income Realty. In the US, the REIT has significant growth potential in consumer-focused medical facilities, data centers, gaming and industrial facilities. Realty Income sees its opportunities in Europe as even greater, with a total addressable market (TAM) of $8.5 trillion.

3. United Parcel Service

United Parcel Service (UPS 1.55%) is the largest package delivery company in the world. It delivers packages to approximately 1.6 million customers to 10.2 million recipients in over 200 countries and territories every business day.

UPS’s forward dividend yield is 4.8%. The company has increased its dividend for 15 consecutive years. While UPS’s dividend payout has grown nearly 70% over the past five years, most of that growth has come from a big dividend increase in 2022.

Funding the dividend program is one of UPS’s capital allocation priorities. Excess cash after paying dividends and investing in the business is used for share buybacks. The company recently announced plans to buy back $500 million of its stock this year.

UPS returned to US volume growth in the second quarter of 2024 for the first time in nine quarters. Its acquisition of Estafeta, which is expected to close by the end of the year, will increase its capabilities in Mexico. The company’s focus on healthcare logistics and small and medium-sized businesses should also drive growth.