7 High-Yield Dividend Stocks Under $50

Buying and holding dividend stocks is a proven way to build wealth over time. And dividend yield is one of the key metrics that investors use when deciding which dividend stocks to buy.  

The dividend yield is a ratio of how much a company pays in dividends each year relative to its stock price. In general, the higher the yield the better, but investors have to be careful to watch for yield traps. This can occur when a company offers a high-yield dividend that isn't sustainable based on the company's fundamentals.  

One way to avoid a yield trap is to look for companies that have a stable history of paying, and ideally, growing its dividends.  

High-yielding dividend stocks aren't likely to make a list of the best-performing stocks. Those slots are reserved for companies that offer more growth. However, these stocks will frequently deliver a total return that is on pace with the broader market. A stock's total return includes stock price appreciation and dividend growth.  

However, like any investment, you want to make sure you're getting the best bang for your investment dollars. The good news is that with just $1,000 of available capital, you can build a significant position in some high-yield dividend stocks.  

That's the focus of this special presentation. In some ways, this list will read like a greatest hits list; there's nothing wrong with that. When you're looking for income, stability is paramount and that means there's something to be said for the familiar. 

When it comes to high-yield dividend stocks, Verizon Communications Inc. (NYSE: VZ) makes many investors lists. The company’s business model in the wireless communications sector ensures a steady, recurring revenue stream from products and services that have a defensive quality to them. Many consumers will prioritize their wireless service when having to decide on budget items to cut.  

This is an industry that is continuing to go through consolidation. And Verizon recently agreed to buy Frontier Communications in a $20 billion deal that will help position it for the demands of artificial intelligence and connected home devices.  

As of this writing, Verizon’s dividend yield is 6.41% and it pays shareholders $2.71 per share annually. That means a $1,000 investment in VZ stock today would pay about $64 in dividend payments per year without any other additional capital. If reinvested that would add about 1.5 shares to a position. And Verizon is a solid bet to increase its dividend having increased it for 20 consecutive years.  

The energy sector is a good place to look for high-yield dividend stocks. However, it’s important to be selective. Enbridge Inc. (NYSE: ENB) is a name that stands out for its dividend and it’s also a good cyclical play for the changes happening in the world economy.  

Enbridge operates a network of energy infrastructure assets, like pipelines. And the business model is one of a toll collector. The company gets paid a fixed amount that’s not impacted by the price of oil or the underlying commodity. 

The emerging need for data centers between now and 2030 is expected to drive continued demand for natural gas, which will benefit companies like Enbridge.  However, in addition to transporting oil and natural gas, Enbridge has notable investments in wind, solar, and geothermal projects. 

As of this writing, ENB stock had a dividend yield of 6.29%, which is more than double the growth rate of inflation as measured by the February CPI number.  

Energy Transfer LP (NYSE: ET) is often brought up along with Enbridge when analyzing midstream energy companies with attractive high-yield dividends. In fact, at the time of this writing, Energy Transfer has a slightly higher yield than Enbridge at 7.06%. 

Energy Transfer doesn’t offer exposure to the clean energy sector. However, it does have investments in a compression business and a fuel distribution provider. 

Energy Transfer drew the ire of some shareholders after cutting its dividend in 2020. At the time, there was a lot of uncertainty regarding the economy, so the cut may have been a prudent move. And it’s important to note that the dividend is on the rise and somewhat aggressively at that. The company isn’t a yield trap, and with natural gas demand likely to remain at elevated levels, ET stock is a high-yield dividend stock to consider.  

Pfizer Inc. (NYSE: PFE) is a multibillion-dollar biopharmaceutical company that generated over $63 billion in revenue in 2024. While that was down from the $81 billion that Pfizer generated in 2021, largely from its COVID-19 vaccine and therapeutics. However, the company has 10 drugs that each add at least $1 billion to the company’s topline.  

However, investors know that success in the biopharmaceutical sector means looking to the future. Pfizer has an extensive pipeline with 115 candidates as of February 2025. That includes 32 drugs that are in Phase 3 trials, with many of those candidates being in oncology.  

Investors may have to wait for that growth. But PFE stock offers a dividend that may make it worth the wait. The stock’s dividend has a dividend yield as of this writing of 6.67% and the company has increased the dividend for 16 consecutive years. 

Bank stocks can be a good place to look for high-yield dividends. But many of the big banks trade for well over $50 a share. That’s a good argument for regional banks like Truist Financial Corp. (NYSE: TFC). The bank, which is considered a super-regional bank, was formed in 2019 after the merger of BB&T Corporation and SunTrust Banks. The company, which is headquartered in Charlotte, North Carolina, has 2,500 branches in 15 states.  

With interest rates over 4%, it’s important to note that 28% of the company’s deposit accounts are non-interest-bearing. And the bank’s loan portfolio has only about 30% exposure to real estate. Furthermore, the company is taking strides to increase its presence in wealth management.  

TFC stock has a dividend yield of 5.23% as of this writing. It hasn’t been growing the dividend annually, but it did increase the dividend as recently as 2022.   

Kenvue Inc. (NYSE: KVUE) is a solid choice for investors who are looking for a consumer staples stock that also offers an attractive dividend yield. Consumer staples stocks have the benefit of being defensive in nature which means that consumers will seek out these company’s products independent of economic conditions.  

Kenvue is the consumer products spinoff from Johnson & Johnson (NYSE: JNJ) and continues to house iconic brands such as Tylenol, Motrin, Benadryl, Listerine and Nuetrogena. The company operates in three core areas: Self Care, Skin Health and Beauty, and Essential Health. 

As a benefit of being a spinoff of JNJ stock, Kenvue was bequeathed with JNJ’s dividend history. That makes it part of the exclusive dividend king club. The company’s dividend as of this writing is around 3.5%.  

For many investors, high-yield dividends mean real estate investment trusts (REITs). By law, REITs have to set aside up to 90% of its earnings to reward shareholders by way of dividends. Many of these companies pay their dividends monthly which can be a bigger attraction for investors. 

VICI Properties Inc. (NYSE: VICI) pays a quarterly dividend, but it’s still an attractive choice for investors even at a time when the real estate market is under pressure. The key is the type of projects the company owns.  

Many of the company’s 93 properties are considered high-value properties that are destinations for consumers and difficult to replace. You’re looking at some of the top casino resorts in Las Vegas: Caesars Palace, MGM Grand, The Venetian, and Mandalay Bay. 

VICI has been steadily increasing its dividend which has a dividend yield of 5.4% as of this writing.