Want $2,000 in annual dividends? Invest $30,000 in these 3 high yielding stocks

Dividend stocks can be a great source of cash flow for your portfolio. You don’t have to settle for stocks that only pay a few percentage points, either. Some fairly safe, high yielding stocks pay much more than S&P 500 average of 1.3%.

Pfizer (PFE 0.42%), ECB (B.C 1.22%)and AT&T (T 1.13%) all could make for good income investments to add to your portfolio right now, as they all pay more than 5% and are pretty safe buys. Here’s how investing $30,000 in these stocks could generate $2,000 in annual dividends for your portfolio.

1. Pfizer

Healthcare giant Pfizer pays an attractive dividend that yields 5.9%. If you were to invest $10,000 in stocks, it would generate over $590 in dividends over a full year. Investors have been bullish on Pfizer of late, seeing it as a business that got a boost thanks to its COVID vaccine and pill, but whose future is far less certain.

While it’s true that COVID earnings are down, the stock is probably worth more than the 11 times estimated future earnings (based on analyst forecasts) that it’s currently trading at. It has loaded up on acquisitions to improve its growth prospects.

Its $43 billion acquisition of Seagen last year has the potential to be transformative for the company, making oncology a much bigger part of its operations in the coming years. It also has an underappreciated opportunity in the promising weight loss market as it works to develop a daily pill to help people lose weight.

Pfizer is in cost-cutting mode, and while it has suffered losses in recent quarters due to restructuring and impairment charges, investors shouldn’t discount it as a top dividend stock to own.

2. BC

Canadian media and telecommunications company BCE makes for another stable dividend stock to buy and hold. It probably won’t generate significant capital gains for investors, but given its dominance and leading position in the Canadian telecommunications industry, it’s not a stock you’ll need to worry about over the long term.

At 8.4%, its yield is abnormally high as investors have been bearish on telecom stocks this year due to rising interest rates. But as those rates start to fall, ECB and similar stocks may start to rise. Meanwhile, investing $10,000 in stocks can help you get $840 in annual dividends while the payout remains high.

The company expects minimal growth this year (between 0% and 4%). However, its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) will also increase by as much as 4.5%, a great sign that the business continues to move forward despite the less-than-stellar economic conditions. ideal. The stock is trading at just 16 times forward earnings and could represent another solid buy-and-hold investment.

3. AT&T

Rounding out this list of high-yielding dividend stocks is AT&T. Its 5.8% yield is the lowest on this list, but it wasn’t that long ago when the payout was even higher. Investors have been more bullish on the telecom provider of late as it has generated strong results, allaying many fears investors had about its operations and high dividend.

As with BCE, you get another fairly slow-growing business in AT&T. This year, it expects wireless revenue to grow 3%, but expects a higher 7% growth rate in its broadband operations. Adjusted EBITDA growth is also expected to be around 3%.

Despite its recent growth, investors are still shorting the stock a bit too much, as AT&T trades at a forward price-earnings multiple of 9. The company is slowly winning investors over with its results and proving it’s not a value trap, but it’s still a cheap investment to own right now.

Another $10,000 invested in the company would give you $580 in annual dividends. When combined with the other payouts on this list, this total annual dividend would amount to about $2,010 on a total investment of $30,000.