3 High-Yield Dividend Stocks Down Over 39% to Buy Now and Hold for at Least a Decade

With the major stock indexes near all-time highs, finding stocks that pay satisfying dividend yields isn’t quite as easy as it used to be. Before you give up, though, consider Brookfield Renewable Partners (BEP -0.27%), Royalty Pharma (RPRX 0.62%)and Bristol Myers Squibb (BMY 1.85%).

Since 2020, these three dividend payers have increased their quarterly payouts by 22.7% and 40% higher. Despite the increased payouts, their share prices are well below the all-time highs they hit in 2021.

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Rising dividend payouts coupled with falling stock prices is a recipe for high returns. At recent prices, these stocks offer dividend yields that are well above average. Here’s why investors can look forward to steadily increasing payouts from these three exceptional stocks for at least another 10 years.

Brookfield Renewable Partners

If you’re looking for companies that can consistently grow their payouts, the utilities sector is right up your street. Instead of focusing on fossil fuels, though, consider Brookfield Renewable Partners. At recent prices, it offers a dividend yield of 5.4%. This is more than four times the average yield of dividend payers in the benchmark index S&P 500 index.

The stock is down about 37% from its all-time high a few years ago, but its dividend payout is up about 22.7% since 2020. At recent prices, it yields a juicy 5.4%.

As the name suggests, Brookfield Renewable invests in hydroelectric, wind, solar and nuclear energy sources. Investors looking for an ever-growing source of income love this stock because its clients tend to sign contracts that last for decades and include inflation-adjusted rate increases.

In addition to steady growth in consumer demand for electricity, investors in Brookfield Renewable can look forward to steady earnings driven by a long track record for corporate customers. In the second quarter alone, it struck deals to provide an additional 2,700 gigawatt hours per year of generation, about 90% of which was contracted to corporate customers.

Royalty Pharma

Sales for individual products can be highly unpredictable, but overall spending on prescription drugs is steadily increasing. Americans spent $405 billion on prescription drugs in 2022, which was 8.4 percent more than they spent a year earlier.

With a financial stake in more than 35 commercial products, Royalty Pharma is undoubtedly the surest way to bet on the steady increase in demand for new medicines.

Shares of Royalty Pharma are down about 38% from their 2021 all-time high, even as its dividend payout has risen 40% since 2020. At recent prices, the stock offers a dividend yield of 3%.

The recent results of this specialist financier are much more encouraging than you would expect after looking at the stock chart. Second quarter royalty revenue rose 11% year-over-year. The company expects royalty revenue to reach at least $2.7 billion this year, or 9% more than it reported last year.

Royalty Pharma does not rely on the 35 commercial products that are already generating revenue. In the first half of 2024, the company announced new deals worth about $2 billion. They can’t all be loud, but there are probably enough hits in his rapidly growing portfolio to keep pushing the needle forward into the next decade.

Bristol Myers Squibb

Shares of Bristol Myers Squibb, a more than century-old pharmaceutical giant, are down about 39.4% from their peak a few years ago. The stock is down, even though the company has raised its dividend every year since 2009.

A rapidly growing portfolio will allow Bristol Myers Squibb to increase its dividend for years to come. In the first half of 2023, five drugs in Bristol Myers Squibb’s portfolio grew more than 10% year-over-year. The company is also seeing sales for three new cancer therapies that are slated for FDA approval in 2024. Breyanzi is a cell therapy for advanced lymphoma, Krazati is a targeted treatment for colon cancer, and Augtyro is approved to treat nearly anyone has caused by solid tumors. by a mutation of the NTRK gene.

Any day now, Bristol Myers Squibb could also get the green light for a highly anticipated antipsychotic treatment called KarXT. If approved, it will be the first antipsychotic drug that does not act on dopamine receptors. With far fewer side effects that make adherence to recommended dosing schedules a challenge, sales of KarXT are expected to exceed $10 billion annually at their peak.

Bristol Myers Squibb’s dividend increases in recent years have not been small. The drugmaker’s quarterly payout is up 46% since 2019. At recent prices, the stock offers a hefty dividend yield of 4.9%. With a wide range of recently launched drugs and potential hits in late-stage development, this company could continue to raise its payout for another 15 years.