Top Performing High-Dividend Shares to Invest in with a $1,000 Budget Immediately
In the tumultuous economic landscape of 2022 and 2023, numerous high-yielding dividend stocks lost their luster as investors sought solace in safer options like CDs and Treasury bills, driven by rising interest rates. However, by 2024, several of these overlooked stocks found stability as the Federal Reserve implemented interest rate cuts. With the 10-year Treasury yield hovering around 4.7%, investors are expected to rotate back to these high-yielding dividend stocks in 2025 following additional rate cuts.
If you're looking to capitalize on this shift, consider investing in three underappreciated dividend stocks: Verizon Communications (VZ), Vici Properties (VICI), and Opera (OPRA). Each of these stocks offers compelling value and generates substantial annual income.
Verizon: A Telecom Giant with Dirt-Cheap Valuations
At first glance, Verizon might appear to be a poor dividend stock due to its five-year share price decline of 36%. However, the company's low valuation of 8 times forward earnings and substantial dividend yield of 7.1% signal limited downside potential.
Verizon struggled to grow its core wireless business, fend off competitors, and reduce debt in recent years. But its efforts to stimulate growth led to improvements in its localized incentives, marketing campaigns, and partnerships with retailers like Walmart. As a result, Verizon's total revenue inked a modest 0.3% increase in 2024 though its business segment still faced headwinds.
While analysts forecast flat revenue and a slight dip in EPS for 2024, they expect Verizon's overall growth to rebound in 2025, making this telecom giant a promising long-term investment for value-minded investors.
Vici Properties: A Real Estate Crown Jewel
Vici Properties is a real estate investment trust (REIT) specializing in casino and entertainment properties. The company owns dominant properties in the United States and Canada, including iconic casinos like Caesars Palace, MGM Grand, and the Venetian.
Vici's long-term lease agreements with premier tenants like Caesars Entertainment, MGM Resorts, Penn Entertainment, and Century Casinos bolster its resilience in turbulent economic conditions. Its ability to maintain a 100% occupancy rate throughout the pandemic and geopolitical conflicts, underscores its reliability as a core investment.
Currently trading at 13 times its expected AFFO, Vici looks like a brilliant value play for income-focused investors seeking a 6% dividend yield. Its stable revenue growth and lasting legacy will cement its position as a mainstay in the REIT sector.
Opera: The AI-Driven Web Browser
Opera is a web browser and news app developer that holds a modest 2% share of the global market. Despite its small footprint, Opera still boasts a large user base of 296 million MAUs in 2024, primarily due to its innovative AI tools.
The company is working to differentiate itself in a crowded market by integrating AI into its browse and ads, especially with its latest browser, Opera One. By bundling OpenAI's tools and its own AI assistant, Aria, Opera is positioning itself to attract new users and generate higher revenue.
Analysts anticipate strong revenue growth of 20% in 2024 and an additional 16% in 2025. With a high dividend yield of 4.4%, Opera offers an opportunistic mix of value, income, and growth potential for savvy investors.
Overall, these three high-yielding dividend stocks present compelling opportunities for investors intending to seize upon the rotation back to equities following interest rate cuts. By employing a risk-averse investment strategy and focusing on their unique growth prospects, you can secure a solid return and supplement your annual income.
In the context of investing, with the expected decrease in the 10-year Treasury yield, many investors might consider diversifying their portfolios by investing in high-yielding dividend stocks like Verizon Communications, Vici Properties, and Opera for potential income and growth.
As interest rates decrease, investors may find that these high-yielding dividend stocks like Verizon, Vici Properties, and Opera become more attractive, as they offer higher returns compared to lower-yielding instruments such as CDs and Treasury bills.
