Dividend-Strong Stocks as a Reliable Source of Income

Investors considering the establishment of a stable source of income for the future should take a look at high-dividend stocks that have proven lucrative over decades. Particularly in the past five decades, dividend-paying stocks in the S&P 500 index have significantly outperformed their non-dividend-paying counterparts, with an average annual return of 9.17% compared to just 4.27%. This is supported by studies from Ned Davis Research and Hartford Funds. Currently, shares of companies such as AT&T, Hercules Capital, and Pfizer offer dividend yields of 5% or more and cost less than 100 euros per share. For investors, this represents a meaningful expansion of their portfolios and the opportunity to outperform the market while simultaneously boosting their passive income. AT&T adjusted its dividend in 2022 to focus on the more stable cash flows of its telecommunications business. With a dividend yield of 5.2%, the company demonstrates reliable growth through its 5G services and expanding fiber optic networks. This expansion is also reflected in a revenue growth of 3.4% in mobile services, while the customer broadband segment grew by 7% in the second quarter. Hercules Capital, as a so-called Business Development Company (BDC), offers its shareholders a hefty dividend yield of 8%. Through high-risk investments in young companies in the life sciences and technology sectors, Hercules benefits from substantial earnings, which can also be enhanced by an additional dividend bonus. Pfizer remains a reliable dividend payer, even though revenue from COVID-19 products fluctuated greatly. With an attractive dividend yield of 5.7% and a variety of patented products, Pfizer demonstrates continuous growth, not least through the acquisition of Seagen to strengthen its oncology portfolio.