Stock Market Recovery: 3 Best High-Yield Dividend Stocks to Buy Now

With the stock market recovery in full swing, investors may be wondering if it’s time to get back in the higher-yielding dividend plays that are still well off their all-time highs as a “catch-up” trade of sorts. Undoubtedly, the market’s recent momentum has been quite powerful. Markets have held up even in light of recent developments from the Israel-Iran war. Though nobody knows if a breakout or mild correction comes next, I do view the following dividend stocks as worthy value options as we head into late June and into July.

Verizon

Verizon (NYSE:VZ) stock is arguably the timeliest dividend stock as June comes to a close. The stock yields a lofty 6.5% after having gained more than 17% in two years. While the telecom’s relief rally has effectively run out of steam, I believe there are several reasons for income investors to remain invested. Beyond the generous payout, the company is experiencing some momentum in wireless that may have legs.

According to Citigroup analyst Michael Rollins, Verizon’s management team has been paying extra attention to retaining existing subscribers. This should enable the industry juggernaut to regain a considerable amount of market share. Add its impressive network and aggressive promos into the equation, and it certainly does seem like Verizon’s now comfortably on the high road.

With a new slate of AI-enabled devices on the horizon (not just smartphones), perhaps there’s an opportunity for VZ stock to reignite at some point in the second half. In any case, VZ shares look like a steal at 8.89 times forward price-to-earnings (P/E), given its wireless momentum and recent edge computing partnerships, which should bolster the longer-term growth narrative.

Invesco

Invesco (NYSE:IVZ) is an investment management firm that’s perhaps best known as standing behind popular and highly liquid ETFs (Exchange Traded Funds), most notably the QQQ. As the firm expands its products into different corners of the globe, it certainly has the means to boost its AUM (Assets Under Management) further. Furthermore, the continued rise of passive DIY investors and growing interest in thematic ETFs, I believe, represent a fairly nice secular tailwind for Invesco and its peers.

Though the stock isn’t necessarily known for sustained capital gains, with the name currently sitting down around 64% from its 2015 peak, I do find the 5.7% dividend yield to be intriguing for income investors seeking a well-covered payout and a rock-bottom price of admission. The $15 stock goes for just 8.7 times forward P/E, making it one of the most intriguing dividend payers to consider buying and holding for the long haul.

United Parcel Service

United Parcel Service (NYSE:UPS) stock has now collapsed around 55% from its all-time highs. Even Jim Cramer thinks the logistics firm is becoming “too hard to own” amid industry headwinds and the recent parting of ways with e-commerce juggernaut Amazon (NASDAQ:AMZN). With around 20,000 operating jobs to be cut this year, questions linger as to how the firm will land after another chaotic past year.

Though there’s not a whole lot to get excited about as the macroeconomic headwinds worsen while Donald Trump’s tariffs look to weigh more heavily, I do think the rock-bottom valuation is enough reason to give the parcel carrier a second look.

Sure, headwinds seem difficult to overcome, but at 13.9 times forward P/E, you’re paying a very reasonable multiple for a firm that should be in better shape once the consumer tides do finally turn. While a return of the “roaring 20s” is off the table for now, I find the 6.6% dividend yield to be rich enough to justify staying the course, and investors seek to ride out what remains of the storm.

The bottom line

The stock market may be in recovery, but the following names remain cheap, underappreciated, with swollen dividend yields, and the ability to move higher without much help from the broad market. Personally, I think Verizon is the best bet right here. It has an attractive yield, a greater degree of predictability with wireless subs, and the means to add to its strengths in the second half. 

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