Article:
As we enter the new year, income investors are on the lookout for high-yield dividend stocks that can boost their portfolios and provide consistent returns. In a study conducted by Ned Davis Research and Hartford Funds, it was found that companies that initiated and grew their dividends between 1973 and 2022 generated an impressive annualized return of 10.24%. This outperformed the equal-weighted S&P 500 Index and non-dividend-paying stocks by a significant margin.

With this in mind, three supercharged income stocks with average yields of 8.83% are poised to be solid investments in 2024 and beyond.

The first top-notch dividend stock is AT&T (T). Despite facing challenges in 2023, including rising interest rates and concerns over lead-sheathed cables, AT&T's strong balance sheet and operational benefits from the 5G revolution make it an attractive buy. The company has improved its net debt to $128.7 billion as of September 2023 and is expected to benefit from increased data consumption and broadband additions.

Another standout stock is PennantPark Floating Rate Capital (PFLT), a business development company (BDC) primarily focused on debt investments in middle-market companies. With a weighted average yield on debt investments of 12.6%, PennantPark has managed to mitigate risks and deliver stellar operating performance. The company's variable rate debt-securities portfolio has seen a significant boost in yield with the rising interest rates, making it an appealing option for income seekers.

The third ultra-high-yield dividend stock is Altria Group (MO), the tobacco behemoth behind the Marlboro brand. Despite a decline in overall cigarette smoking rates, Altria maintains pricing power due to the addictive nature of nicotine. The company's diversification into e-vapor products through the acquisition of NJOY Holdings and its equity stake in Cronos Group, a Canadian licensed cannabis producer, positions Altria for future growth and expansion.

These three high-octane dividend stocks offer income investors substantial yields ranging from 6.6% to 10.2%. While they come with added risk, diligent vetting and a long-term investment outlook can uncover true gems.

Investors looking to bolster their income portfolios in 2024 should consider these ultra-high-yield dividend stocks that have the sustained catalysts necessary to make patient shareholders richer in the coming years. As always, it's important to conduct thorough research and consider one's individual investment goals and risk tolerance before making any investment decisions.

Disclaimer: This article represents the views and opinions of the author and does not constitute financial advice. It is always recommended to seek the advice of a professional financial advisor before making any investment decisions.