3 High-Yield Stocks to Buy Hand Over Fist in September

Income investors can’t always be too picky when buying stocks. Sometimes they have to put their money to work regardless of what’s going on in the stock market or if there’s uncertainty about the upcoming election.

However, income investors can ever be picky about the stocks you buy. The good news is that there are some great options right now. Here are three high-yielding dividend stocks to buy first in September.

1. Dominion Energy

Dominion Energy (NYSE:D) provides electricity or natural gas to more than 4.5 million customers in 13 states. The company has particularly large operations in its home state of Virginia and neighboring North Carolina.

Income investors should like Dominion Energy’s forward dividend yield of 4.7%. Although the company has cut its dividend payout in 2020 due to its high level of debt, management says it is “100% committed to (the) current dividend”, with “dividend security” being one of the five key principles of its business plan .

Dominion has taken positive steps to reduce its debt, thereby increasing the reliability of its dividend. These efforts were recognized in June with S&P upgrading its outlook on the company from negative to stable. The other two major credit rating agencies — Fitch and Moody‘s — also have stable prospects for Dominion.

I think there are two key reasons to buy Dominion Energy stock in September, besides the attractive dividend yield. The Federal Reserve is expected to cut interest rates this month, boosting utility stocks. Dominion is also poised to benefit from Northern Virginia’s booming data center market.

2. Pfizer

Pfizer (NYSE: PFE) is no stranger to many Americans. The big pharma company had eight blockbuster drugs last year, along with dozens more that generated annual sales of more than $100 million.

With a forward dividend yield of about 5.9%, Pfizer should be no stranger to income investors. CFO David Denton recently said that “sustaining and growing the dividend is our number one priority.”

Yes, Pfizer has some challenges. Its revenue from COVID-19 products has dropped significantly. The company also faces a patent backlog with key patents for several drugs expiring in the next few years.

However, I think the worst is over for Pfizer in terms of revenue due to COVID-19. The drugmaker expects its business development offerings to generate more than enough revenue to offset the effects of patent expirations. Pfizer’s pipeline includes plenty of promising programs, including the obesity drug danuglipron. I expect the company to have solid growth in the second half of the decade.

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3. United Parcel Service

United Parcel Service (NYSE: UPS) is another familiar name. It is the largest package delivery company in the world. UPS is also a leader in the global supply chain management market.

Packages aren’t the only things UPS offers; the company also offers juicy dividends to shareholders. Its forward dividend yield is around 5.1%. UPS has raised its dividend for 15 consecutive years.

What UPS hasn’t been delivering to investors recently is positive earnings. Shares are down nearly 20% in 2024. The company’s top and bottom lines have also been trending in the wrong direction.

However, I think UPS is ready for a change. In Q2, it returned to US volume growth for the first nine of nine quarters. The company’s profits are expected to rise as it moves through the first year of its contract with the Teamsters union, a deal that has been heavily loaded with higher costs. UPS appears to be at an inflection point, which presents an excellent buying opportunity for income investors.

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Keith Speights has positions in Dominion Energy, Pfizer and United Parcel Service. The Motley Fool has positions in and recommends Moody’s, Pfizer and S&P Global. The Motley Fool recommends Dominion Energy and United Parcel Service. The Motley Fool has a disclosure policy.

3 High-Yield Stocks to Buy Hand Over Fist in September was originally published by The Motley Fool