As we head into 2025, it’s essential to start thinking about which dividend stocks could make sense for your portfolio. With attractive dividend yields, these companies can provide a steady income stream and help cushion against market volatility.
Here are the S&P 500’s highest-yielding stocks: Walgreens Boots Alliance (WBA), Altria Group (MO), and Pfizer (PFE). While they offer high dividend yields, it’s crucial to assess each company’s strengths and weaknesses before investing.
Walgreens Boots Alliance has an 11.8% dividend yield, but its yield is under pressure due to a recent 48% cut in quarterly payouts. The company’s operating loss was $14.1 billion in fiscal 2024, and competition from Amazon and Walmart is increasing. This combination makes it challenging for investors to feel comfortable with this stock.
In contrast, Altria Group has seen its stock rise by 37% this year due to progress in its non-cigarette categories, such as vapor products. The company’s largest cigarette producer, Altria is well-positioned to benefit from declining smoking rates in the US. However, raising prices per pack may not be a long-term solution.
Pfizer has been diversifying its lineup and expanding operations, with recent investments in internal research and development projects worth $7.8 billion. The company has increased its dividend for 15 consecutive years and has a strong track record of growth. Pfizer’s above-average yield makes it an attractive option for investors looking to practice patience while waiting for new sources of growth.
When considering these dividend stocks, it’s vital to monitor their progress and adjust your investment strategy accordingly. By doing so, you can make informed decisions and position yourself for long-term success in the market.
Source: https://www.fool.com/investing/2024/12/08/should-you-buy-sp-500s-highest-yielding-dividend