3 High-Yield S&P 500 Dividend Stocks That You Can Buy With $100 Right Now

Jul 9, 2024 | blog

This has been a tremendous yr for shares, with a 12.6% rise within the benchmark S&P 500 index. Fortunately for us value-conscious traders, the most recent bull run has been principally constrained to a handful of shares on the high.

Bristol Myers Squibb (NYSE: BMY), Vici Properties (NYSE: VICI), and AT&T (NYSE: T) are dividend payers within the S&P 500 that have not stored up with the largest members of their index. At latest costs, $100 is greater than sufficient to purchase a share of every.

At their comparatively depressed costs, these shares supply a 6% common yield. Let’s kick their tires to see if traders can depend on them to maintain paying and elevating their quarterly dividends.

1. Bristol Myers Squibb

Shares of Bristol Myers Squibb are down about 17% this yr, because of a disturbing cost it recorded in affiliation with latest acquisitions. At latest costs, the inventory presents a 6.1% dividend yield and confidence that comes with 15 consecutive years of dividend payout raises.

In the primary quarter, the massive pharma acquired Karuna Therapeutics, RayzeBio, Mirati Therapeutics, and SystImmune. Instead of including heaps of intangible belongings to its stability sheet, Bristol Myers Squibb recorded a $12.9 billion in-process analysis and improvement (IPRD) cost.

An enormous IPRD expense will hammer reported earnings this yr, however a revenue giant sufficient to help future dividend raises could possibly be across the nook. KarXT is an experimental first-in-class antipsychotic therapy that Bristol Myers Squibb acquired from Karuna. As the primary completely new therapy choice in a long time, it might generate blockbuster gross sales if permitted later this yr as anticipated.

KarXT is only one of many experimental medication within the Big Pharma firm’s late-stage pipeline that might change into business successes within the years forward. Adding some shares to a diversified portfolio now seems to be like a sensible transfer.

2. Vici Properties

You most likely know that the home at all times wins in Las Vegas casinos, however do you know that firms like MGM Resorts and Caesars Entertainment not often personal the buildings they function? Instead, they lease them from actual property funding trusts (REITs) like Vici Properties.

Vici Properties’ money flows are very predictable, with inflation-sensitive annual lease escalators constructed into long-term web leases. The REIT has raised its dividend seven occasions since turning into a publicly traded firm in 2018.

Shares of Vici Properties are down barely this yr and at latest costs supply a 6% dividend yield. Before betting all of your chips on this inventory, it is necessary to appreciate how closely it depends on its largest tenants. At the second, MGM Resorts and Caesars are answerable for 74% of complete lease funds.

With such a heavy reliance on a pair of on line casino operators, this inventory is way riskier than a well-diversified web lease REIT akin to Realty Income. It’s not a foul funding, however risk-averse traders wish to go on this high-yield alternative.

3. AT&T

Shares of AT&T are up this yr, however they’ve underperformed the S&P 500 by rising simply 6% because the finish of 2023. At latest costs, the underperforming inventory presents a 5.9% yield.

In 2022, AT&T slashed its dividend to account for the spinoff of its media belongings. Now that it is only a telecommunications firm, money flows ought to be extra dependable.

Last yr, AT&T grew to become the final of America’s huge three 5G community operators to launch a set wi-fi broadband web service. As a outcome, complete broadband subscriptions stopped declining and began climbing once more.

AT&T is managing a big debt load, however as it is a everlasting member of America’s three-member telecom oligopoly, there is a good probability it may possibly start elevating its dividend payout once more in 2025. Buying the inventory now and holding it for the long term seems to be like a sensible transfer for many income-seeking traders.

Should you make investments $1,000 in Bristol Myers Squibb proper now?

Before you purchase inventory in Bristol Myers Squibb, think about this:

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Cory Renauer has no place in any of the shares talked about. The Motley Fool has positions in and recommends Bristol Myers Squibb, Realty Income, and Vici Properties. The Motley Fool has a disclosure coverage.

3 High-Yield S&P 500 Dividend Stocks That You Can Buy With $100 Right Now was initially printed by The Motley Fool

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