When is the best time to buy high-yield dividend stocks? The best answer for income investors is probably as quickly as possible. The sooner you invest, the sooner the dividends begin flowing in.
Some stocks are better than others at different times, though. As we enter the final quarter of 2024, I think a few stocks especially stand out. Here are three high-yield dividend stocks to buy hand over fist in October.
1. Enterprise Products Partners LP
Enterprise Products Partners LP (EPD 0.45%) is one of the top providers of midstream energy services in North America. The limited partnership (LP) operates over 50,000 miles of pipeline, liquids storage facilities, natural gas processing facilities, and more.
NYSE: EPD
Key Data Points
Income investors have a lot to like with Enterprise Products Partners. Its forward-distribution yield is a sky-high 7.2%. Even better, Enterprise has increased its distribution for 26 consecutive years.
The midstream company is in a great position to keep the distributions flowing and growing. Enterprise Products Partners boasts a solid balance sheet with respectable A- and A3 credit ratings reflecting a low risk of default. Its cash flow has also been resilient through the years even during the financial crisis of 2007 and 2008, the oil price collapse of 2015 through 2017, and the COVID-19 pandemic in 2020 and 2021.
Enterprise Products Partners isn't likely to be a high-growth stock, but it still has pretty good growth prospects. The company currently has roughly $6.7 billion of major growth-capital projects under construction. U.S. crude oil, natural gas, and natural gas liquids production are projected to increase through the end of the decade with a significant portion exported to other countries. The demand for Enterprise's pipelines and other midstream assets should remain strong.
2. Realty Income
Realty Income (O +0.87%) ranks as the world's seventh-largest real estate investment trust (REIT). It owns 15,450 commercial real estate properties that are leased to a diversified group of clients spanning 90 industries.
NYSE: O
Key Data Points
The REIT pays a monthly dividend with a forward yield of 5%. Realty Income has increased its dividend for 29 consecutive years with a compound annual growth rate (CAGR) of 4.3%.
One key for Realty Income to continue this impressive streak is maintaining a high-occupancy rate. The company has done a great job on both fronts in the past. Realty Income's median historical occupancy is an industry-leading 98.2% with its lowest year-end occupancy at 96.6%.
Growth shouldn't be a problem for Realty Income. In the U.S., the REIT has significant growth potential in consumer-centric medical facilities, data centers, gaming, and industrial facilities. Realty Income believes its opportunities in Europe are even bigger with a total addressable market (TAM) of $8.5 trillion.
3. United Parcel Service
United Parcel Service (UPS +0.06%) is the largest package-delivery company in the world. It delivers packages for roughly 1.6 million customers to 10.2 million recipients in over 200 countries and territories every business day.
NYSE: UPS
Key Data Points
UPS' forward-dividend yield stands at 4.8%. The company has increased its dividend for 15 consecutive years. While UPS' dividend payout grew nearly 70% over the last five years, most of that increase came from a big dividend hike in 2022.
Funding the dividend program is one of UPS' top capital-allocation priorities. Excess cash after paying dividends and investing in the business is used for stock buybacks. The company recently announced plans to repurchase $500 million of its shares this year.
UPS returned to volume growth in the U.S. in the second quarter of 2024 for the first time in nine quarters. Its acquisition of Estafeta, which is expected to close by year end, will increase its capabilities in Mexico. The company's focus on healthcare logistics and small- to medium-sized businesses should also boost growth.
