2 High-Yield Dividend Growth Stocks to Buy Now
If you're seeking income through dividends, the current stock market may pose challenges as many stocks hover near all-time highs. The average stock in the S&P 500 offers a modest dividend yield of just 1.2%. However, hidden gems like UnitedHealth Group (NYSE: UNH) and Prologis (NYSE: PLD) stand out with yields that exceed the market average.
1. UnitedHealth Group (UNH)
Despite a significant decline of approximately 44% this year, UnitedHealth Group maintains a solid dividend yield of 2.9%. The company has faced challenges in recent years, including unexpected medical expenses and a management shift, yet it has increased its dividend payout by an impressive 77% over the past five years.
Though predicting earnings may be tricky in the short term, long-term investors can expect a return to robust growth as the national health expenditure continues to rise, projected to reach $4.9 trillion in 2023 with a steady annual increase.
2. Prologis (PLD)
Prologis has also seen stock prices drop by about 38% since its peak in 2022, largely due to the lingering effects of the pandemic. This REIT, which owns around 1.3 billion square feet of logistics real estate, currently offers a dividend yield of 3.8% and has increased its dividend by 74% over the last five years.
With an impressive occupancy rate of 95.5%, Prologis continues to attract tenants despite market fluctuations. Its strong credit ratings allow it to maintain low financing costs, positioning it well to support ongoing dividend growth.
Investing in these stocks now could lead to substantial passive income over the long term. If you're looking for reliable dividends, both UnitedHealth Group and Prologis represent solid options for your portfolio.