5 All-Star High-Yield Dividend Stocks Every Boomer Should Own

While reaching retirement age can be both a blessing and a curse, relying on the U.S. government to provide for your needs is not the best idea. The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually for those born from 1955 to 1960, reaching 67. For anyone born in 1960 or later, full retirement benefits are payable at age 67.

While the December 2024 interest rate cut of 25 basis points may be the last until the fall, it is an excellent bet that the federal funds rate will be lower than today’s effective rate of 4.23%, which is already below the long-term average of 4.61%. Therefore, high-quality, high-yield dividend stocks are expected to remain in strong demand.

At 24/7 Wall St., we have closely followed dividend-paying stocks for over 15 years. With a growing audience of savvy baby boomers and retirees seeking safe income ideas that deliver more than the 10-year Treasury bond’s 4.38% bi-annual dividend, we have screened hundreds of stocks, looking for recurring, dependable dividend payouts and a degree of safety that allows for a good night’s sleep. Five companies that all pay a higher yield than the 10-year note are our all-star picks that every baby boomer should own. Top Wall Street firms have Buy ratings on all five.

Why do we cover high-yield dividend stocks?

High-yield dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Bristol-Myers Squibb

Bristol Myers Squibb Co. (NYSE: BMY) is a global biopharmaceutical company committed to discovering, developing, and delivering innovative medicines. This remains a solid pharmaceutical stock to own in the long term, as it offers an outstanding entry point with a reliable dividend. Bristol-Myers Squibb provides transformative medicines for patients with serious diseases in areas such as oncology, hematology, immunology, cardiovascular disease, neuroscience, and other therapeutic areas.

Its platforms comprise chemically synthesized or small-molecule drugs, including protein degraders, as well as biologics produced through biological processes. These platforms also encompass ADCs, CAR-T cell therapies, and radiopharmaceutical therapeutics.

Small-molecule drugs are typically administered orally in the form of tablets or capsules, although other drug delivery mechanisms are also employed. Biologics are usually administered through injections or by intravenous infusion.

CAR-T cell therapies are administered by intravenous infusion.

Its growth portfolio includes:

• Opdivo
• Opdivo Quantiq
• Orencia
• Yervoy
• Reblozyl
• Opdualag

Bristol-Myers Squibb’s legacy portfolio includes:

• Eliquis
• Revlimid
• Pomalyst/Imnovid
• Sprycel
• Abraxane

Chevron

This American multinational energy corporation predominantly specializes in oil and gas. The integrated giant is a safer option for investors looking to position themselves in the energy sector, and it pays a substantial dividend, which was recently raised by 5%. Chevron Corp. (NYSE: CVX) operates integrated energy and chemicals businesses worldwide through its subsidiaries.

The company operates in two segments. The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines, and transportation, storage
• Marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

Chevron announced in late 2023 that it has entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron stock for each Hess share held. The transaction’s total enterprise value, including debt, is $60 billion. The Federal Trade Commission approved the deal last October, and it is expected to close this summer.

Jefferies has a Buy rating with a price objective of $197.

Conagra Brands

Conagra Brands Inc. (NYSE: CAG) manufactures and sells products under various brands in supermarkets, restaurants, and foodservice establishments. This is the ideal company for nervous investors, as it pays shareholders a substantial and secure dividend. Conagra operates primarily as a consumer packaged goods food company in the United States.

The company operates through four segments:

• Grocery & Snacks
• Refrigerated & Frozen
• International
• Foodservice

The Grocery & Snacks segment primarily offers shelf-stable food products through various retail channels.

The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels.

The International segment offers food products in various temperature states through retail and food service channels outside the United States.

The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other food service establishments.

The company sells its products under these familiar brands:

• Birds Eye
• Marie Callender’s
• Duncan Hines
• Healthy Choice
• Slim Jim
• Reddi-Wip
• Angie’s
• BOOMCHICKAPOP

Eversource Energy

This energy provider serves customers in the northeast part of the United States, and it posted strong first-quarter earnings. This conservative stock idea is off the radar and comes with a rich dividend. Eversource Energy (NYSE: ES) is a public utility holding company that provides energy delivery services.

The company operates through four segments:

• Electric Distribution
• Electric Transmission
• Natural Gas Distribution
• Water Distribution segments

It is involved in transmitting and distributing electricity, as well as operating solar power facilities and natural gas facilities.

The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal, and fire protection customers in Connecticut, Massachusetts, and New Hampshire.

Simon Property Group

Simon Property Group Inc. (NYSE: SPG), a leading real estate company, is a self-administered and self-managed real estate investment trust (REIT). It owns, develops, and manages premier shopping, dining, entertainment, and mixed-use destinations, primarily consisting of malls, Premium Outlets, and The Mills.

The company owns or holds an interest in approximately 196 income-producing properties in the United States, which consist of:

• 93 malls
• 70 Premium Outlets
• 14 Mills
• Six lifestyle centers
• 13 other retail properties in 37 states and Puerto Rico

It also holds an interest in 22 regional, super-regional, and outlet malls in the United States and Asia.

Additionally, it has redevelopment and expansion projects, including the addition of anchors, big-box tenants, and restaurants, underway at properties in North America, Europe, and Asia.

Internationally, the company owns 35 premium outlets and designer outlet properties, primarily located in Asia, Europe, and Canada. It also has two luxury outlet destinations in Italy.

Four Strong Buy Bargain Energy Stocks With Ultra-High-Yield Dividends From 7% to Over 20%

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