2 dividend stocks to double right now

Investing in stocks of strong companies that offer unusually high yields relative to their dividend-paying history can help populate your portfolio with winners. Here are two dividend stocks that pay the highest yield in years. You may want to pay extra attention to them. Here’s why.

1. Nike

Right now, investors have the opportunity to buy shares of one of the world’s most iconic brands while trading at a discount. Sportswear conglomerate NIKE (NKE -0.07%) generates $50 billion in annual revenue, making it, among other things, the world leader in footwear. But Nike’s share price is down 54% from its previous peak due to weak consumer spending. The lower stock price pushed Nike’s dividend yield to an above-average 1.83%, based on a current quarterly payout per share of $0.37 — the highest yield since 2009.

It’s a challenging year for Nike. Sales fell by double-digit rates year over year in the last quarter. However, Nike continues to remain profitable as management implements a new strategy to turn around sales. Its current quarterly dividend is about half of quarterly earnings, giving the company a cushion to sustain dividends even in a challenging retail environment.

Nike recently hired former company veteran Elliott Hill as its new CEO. The hire has the company’s teams optimistic about the future, which is a great sign. While a return to growth is expected to take some time, Hill’s experience leading the company’s commercial and marketing operations for Nike and Jordan Brand across four geographies should be valuable in engineering a turnaround.

Nike is in the process of changing its product portfolio from lifestyle products to focus on sports, which is the heart of the brand. The company has already made early progress, with growth in men’s fitness, global soccer and running footwear in the first quarter of fiscal 2025.

With the global athletic apparel market expected to grow further to $293 billion by 2029, according to Statista, investing in Nike should pay good returns and many years of passive income.

2. Verizon Communications

Top telcos make big dividend investments thanks to recurring revenue streams from wireless and broadband subscribers. Verizon Communications (See 0.39%) reported healthy increases in postpaid net additions recently, which have sent the stock up 16% this year, but the stock still offers a high forward dividend yield of 6.16% — Verizon’s highest yield for over a decade.

Wall Street’s concerns about telecom growth amid macroeconomic challenges this year eased last quarter. Verizon reported solid 12% year-over-year growth in consumer postpaid phone additions, which refers to those customers who pay for their wireless plan with a monthly fee. Verizon could be well positioned to ride the tail Apple as it launches new artificial intelligence (AI)-optimized iPhones that are expected to drive strong sales.

The secret to Verizon’s growth strategy is that it offers attractive add-ons to win customers over to its wireless service, including subscription deals to top digital entertainment services. These compelling additions will be valuable tools in retaining customers and achieving strong financial results to support the dividend.

Verizon has paid a dividend every year for 40 years, including all the companies that have been merged over the years to create what is today Verizon Communications. The current quarterly dividend per share is $0.6775, representing a payout ratio of 60% based on adjusted earnings guidance for 2024. Given that strong demand for AI-enabled smartphones is expected over the next few years , buying Verizon shares at their high yield should lead. at excellent returns for investors.