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Sometimes misunderstood actions benefit investors. Savvy investors can capitalize when a stock is wrongly perceived as weak during a recession.
Several high-yielding dividend stocks currently fall into this category. Here, we’ll look at three that are worth considering for investment.
AbbVie
As competition from biosimilars drives down sales, AbbVie’s (NYSE:ABBB) the blockbuster drug Humira has seen better days. In the first quarter of 2024, this decline led to a year-over-year decline in adjusted earnings per share (EPS) and stagnation in total revenue.
Led by Skyrizi and Rinvoq, successors to Humira, the company is poised for significant growth. Additionally, migraine drugs Ubrelvy and Qulipta are gaining popularity and the oncology portfolio including Venclexta, Elahere and Epkinly is showing encouraging strength.
During the first quarter earnings call, AbbVie COO and President Rob Michael, who will take over as CEO in July, expressed optimism, saying, “AbbVie is well positioned to deliver CAGR revenue (compound annual growth rate) high in the single digits. until the end of the decade. »
The AbbVie Board of Directors overwhelmingly approved the elevation of Michael to CEO, succeeding Rick Gonzalez, who will serve as Executive Chairman.
AbbVie’s potential dividend yield of around 4% appeals to income-oriented investors. Dividend King Company has 52 consecutive years of dividend growth. Three industry experts recently proposed an average target price of $189.0 for AbbVie.
Chevron
Big oil companies like Chevron face existential risks as concerns about climate change drive a global shift from fossil fuels to renewable energy.
In the first quarter of 2024, Chevron (NYSE:CLC) to go out increased by 12% Year after year. The company expects continued upstream expansion through at least 2027 and is funding several significant initiatives to increase capacity. One industry executive predicts an oil supply shortfall by the end of 2025, which will greatly benefit Chevron.
Chevron also emphasizes sustainability to balance its bets. Over the next four years, the company aims to reduce its carbon dioxide emissions in its upstream operations by 35%. It mainly funds carbon capture technology, hydrogen and renewable energy. These developments aim to minimize the environmental impact of oil and gas extraction.
Chevron remains a favorite among income investors, with a dividend yield of 4.1%. With 37 consecutive years of increasing dividend payouts, Chevron will likely continue this streak.
Pfizer
Sales of COVID-19 vaccines, once booming, have declined, impacting that of Pfizer (NYSE:PFE) overall revenues and profits.
Despite the challenges, Pfizer has a significant product portfolio and a clear strategy. The Company expects newly authorized indications for current products and new drugs to generate sufficient revenue to balance and exceed the impact of the patent cliff.
With funds acquired during the height of the COVID-19 outbreak, Pfizer strategically acquired smaller pharmaceutical companies.
In 2022, the company acquired Arena, Biohaven, Global Blood Therapeutics, ReViral and Seagen. By 2030, these acquisitions and other future deals are expected to generate nearly $25 billion in new annual revenue.
Pfizer is on the path to profit, offering an attractive forward dividend yield of over 5.9%. In its first quarter update, the company outlined its commitment to maintaining and increasing its dividend while reducing debt and reinvesting in the business.
Are you looking for higher yielding opportunities?
The current high interest rate environment has created an incredible opportunity for income-seeking investors to achieve massive returns, but not through dividend stocks… Some private market real estate investments give retail investors the opportunity to capitalize on these high yield markets. opportunities and Benzinga identified some of the most attractive options to consider.
For example, Base Camp Alpine Notes offers a target APY of 9% with a term of just three months, making it a powerful short-term cash management tool with incredible flexibility. EquityMultiple has issued 61 series of Alpine Notes and has met all payment and financing obligations with no missed or late interest payments. With a low minimum investment of just $1,000, Basecamp Alpine Notes makes it easier than ever to start building a high-yield portfolio.
Don’t miss this opportunity to take advantage of high yield investments while rates are high. Check out Benzinga’s favorite high-yield deals.
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