#5 - High-Yield Dividend Stocks (NYSE:VZ)
A more conservative option for $5,000 in 2025 is high-yield dividend stocks. With interest rates likely to come down, risk-free instruments such as Treasury notes become less attractive. That means that stocks that pay a dividend yield above the federal funds rate could become a better growth option.
One name to consider is Verizon Inc. (NYSE: VZ), which raised its dividend on September 4, 2024 for the 18th consecutive year. The wireless company may be considered too boring for some investors, but this is one example of why boring is beautiful. The five-year total return on VZ stock is negative as of September 2024, but zooming out shows that, over time, the company delivers a solid return in addition to a dividend that yields 6.4%.
Another high-yield dividend stock to consider is Chevron Corp. (NYSE: CVX). Lower interest rates will spur consumer and business spending, both of which are bullish for oil and natural gas prices. Chevron has been lagging oil stocks in 2024 as its merger with Hess Inc. (NYSE: HES) is delayed. That makes it likely to outperform as the sector recovers and investors get a growing dividend that yields 4.62%.
About Verizon Communications
Verizon Communications Inc, through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business).
Read More - Current Price
- $44.38
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $46.37 (4.5% Upside)
