Verizon: A Reliable Dividend Stock with High Yield

Verizon, one of the three major 5G network operators in the U.S., is highlighted as a reliable dividend stock with a high yield of 6.1% at current prices. The company has consistently raised its dividend for 18 consecutive years, the longest streak among its peers.

• Despite declining equipment sales due to longer smartphone refresh cycles, Verizon's wireless service revenue grew 3.5% year-over-year in Q2.
• Verizon's strong free cash flow of $8.5 billion in the first half of 2024 covers its dividend obligations of $5.6 billion, suggesting potential for further dividend increases.
• As a leading 5G service provider, Verizon offers stability and reliability for investors seeking consistent dividend income.

W.P. Carey: A Diversified REIT with Promising Dividend Growth

W.P. Carey is a diversified real estate investment trust (REIT) with a portfolio of 1,291 properties leased through net leases, transferring ownership costs to tenants. The stock currently yields 5.5%.

• After spinning off its office portfolio, 63.9% of W.P. Carey's expected rent payments come from industrial properties and warehouses.
• W.P. Carey's adjusted funds from operations (FFO) are expected to cover its current dividend, with room for growth.
• The REIT plans to invest between $1.25 billion and $1.75 billion in new properties this year, driving future growth.

Pfizer: A Big Pharma Stock with High Yield and Growth Potential

Pfizer's stock has fallen significantly from its 2021 peak due to declining COVID-19 vaccine and treatment sales. However, the company's overall business is thriving, with a 5.6% dividend yield at current prices.

• Excluding COVID-19 sales, Pfizer's Q2 revenue surged 14% year-over-year, driven by its diverse portfolio of patent-protected medicines.
• Pfizer has raised its dividend for 15 consecutive years and has an industry-leading development pipeline with 11 products achieving double-digit sales growth in the first half of 2024.
• With new product launches and a strong global salesforce, Pfizer could continue raising its dividend for many years.

Investing in Dividend Stocks for Retirement Income

The article highlights these three stocks – Verizon, W.P. Carey, and Pfizer – as potential investments for retirement portfolios due to their high dividend yields, stable businesses, and growth prospects.

• Verizon offers a reliable income stream as a leading 5G provider, with a 6.1% yield and potential for future dividend hikes.
• W.P. Carey, a diversified REIT, yields 5.5% and is expanding its portfolio, promising dividend growth.
• Pfizer, with a 5.6% yield, has a promising drug pipeline and could continue raising its dividend for years.

Evaluating Dividend Stocks for Long-Term Returns

While these stocks offer attractive dividend yields, investors should consider their long-term growth potential and overall portfolio diversification when building a retirement portfolio.

• Dividend stocks can provide a stable income stream, but capital appreciation is also important for long-term wealth building.
• Diversification across sectors, industries, and investment types (e.g., growth stocks, bonds, etc.) can help mitigate risk and enhance overall returns.
• Investors should regularly review their portfolios and make adjustments based on changing market conditions and personal financial goals.