AT&T Leads with 7.5% Dividend Yield and 5.8% YTD Gain
- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Five High‑Dividend Stocks Deliver Positive Year‑to‑Date Returns – What You Need to Know
If you’re looking for a blend of steady income and solid price performance, high‑dividend stocks can be a compelling option. A recent NerdWallet article, “5 High‑Dividend Stocks with Positive YTD Returns,” spotlights five well‑known companies that have not only kept their dividend payouts high but also managed to deliver attractive gains over the first part of the year. Below, we break down the key take‑aways from the piece, explore why these names have fared well, and point out some practical next steps for investors interested in adding a yield‑focused element to their portfolios.
1. AT&T (T)
- Dividend Yield: ~7.5 %
- YTD Return (as of the article’s publication): +5.8 %
- Sector: Telecommunications
- Why It’s in the Mix: AT&T has long been a favorite for income investors because of its generous dividend payout and strong cash flow base. Despite the company’s restructuring efforts—shifting focus toward streaming and 5G—the share price has shown resilience. Analysts note that AT&T’s dividend sustainability is anchored by a robust balance sheet and a history of returning cash to shareholders through dividends and share repurchases.
Link Insight: The NerdWallet profile for AT&T provides a deeper dive into its dividend history, payout ratio, and recent earnings trends, which can help confirm whether the yield is likely to stay intact.
2. Verizon (VZ)
- Dividend Yield: ~6.0 %
- YTD Return: +3.4 %
- Sector: Telecommunications
- Why It’s in the Mix: Verizon’s dividends are considered a benchmark for stability. The company’s disciplined capital allocation—balancing network upgrades with shareholder returns—has kept the stock on an upward trajectory. Investors are drawn to Verizon for its reliable dividend track record, even as the firm navigates a shifting wireless landscape.
Link Insight: The link to Verizon’s NerdWallet page includes metrics such as payout ratio, free‑cash‑flow yield, and dividend growth history, giving a comprehensive view of its income-generating potential.
3. Energy Transfer LP (ET)
- Dividend Yield: ~7.4 %
- YTD Return: +8.9 %
- Sector: Energy (Midstream)
- Why It’s in the Mix: Energy Transfer’s midstream assets—pipelines, storage, and transportation—provide a steady revenue stream, which translates into a solid dividend. The company’s focus on infrastructure development and long‑term contracts has helped keep cash flow robust. Additionally, Energy Transfer’s price has benefited from a broader rally in the energy sector, boosting YTD gains.
Link Insight: The article links to Energy Transfer’s page, where readers can explore details about the company’s dividend payout ratio and capital‑expenditure plans—factors that are essential when evaluating the sustainability of its high yield.
4. Duke Energy (DUK)
- Dividend Yield: ~3.3 %
- YTD Return: +2.7 %
- Sector: Utilities
- Why It’s in the Mix: Duke Energy stands out for its combination of a modest dividend yield with a solid YTD return, reflecting its solid fundamentals and regulatory certainty. Utilities, especially large integrated ones like Duke, are known for predictable cash flows. The company’s focus on renewable energy and infrastructure upgrades has positioned it well for long‑term growth while maintaining dividend discipline.
Link Insight: Duke Energy’s NerdWallet profile contains data on the company’s dividend growth rate and P/E ratio, which are valuable for assessing whether the yield is supported by underlying business health.
5. Kinder Morgan (KMI)
- Dividend Yield: ~4.6 %
- YTD Return: +4.6 %
- Sector: Energy (Midstream)
- Why It’s in the Mix: Kinder Morgan, another midstream heavyweight, offers a middle‑ground dividend that is attractive but not extreme. Its extensive pipeline network across North America provides diversified revenue streams, cushioning it against market swings. The YTD price climb has been fueled by a healthy demand for oil and natural‑gas transportation.
Link Insight: The article’s link to Kinder Morgan’s page offers a glance at the company’s payout ratio, debt levels, and dividend history—key metrics for determining whether the dividend is likely to be maintained.
Common Themes Behind the Positive YTD Performance
| Factor | How It Played Out |
|---|---|
| Dividend Sustainability | All five companies show payout ratios that are comfortably below 100 %, indicating they’re not over‑extending. |
| Sector‑Specific Drivers | Telecoms benefited from 5G rollout hype; midstream energy gained from rising commodity prices; utilities were protected by regulatory frameworks. |
| Fundamental Strength | Strong free‑cash‑flow, low to moderate debt, and consistent earnings contributed to price appreciation. |
| Risk Mitigation | Diversification across sectors (telecom, energy, utilities) reduces portfolio concentration risk for an income investor. |
What to Keep in Mind Before Investing
- Dividend Cuts Are a Real Risk – Even well‑established companies can slash payouts if cash flow falters or capital needs spike. Checking the payout ratio and free‑cash‑flow yield is essential.
- Valuation Matters – A high dividend yield is attractive only if the stock isn’t overvalued. Compare P/E and EV/EBITDA to sector peers.
- Tax Considerations – Qualified dividends are taxed at a lower rate, but investors in high‑tax brackets should factor this into expected net returns.
- Portfolio Fit – Income stocks can dampen volatility, but they’re also susceptible to interest‑rate changes. A balanced mix of growth and income positions can help manage risk.
Moving Forward
The NerdWallet article invites readers to click through to each company’s dedicated profile page, where you can dig deeper into quarterly earnings, dividend history, and analyst consensus. That’s a great next step if any of the five stocks resonate with your income‑seeking strategy.
In short, the snapshot the article provides shows that high‑dividend stocks can indeed generate positive year‑to‑date returns while delivering regular cash flow. For investors looking for a blend of income and modest capital appreciation, the five names highlighted—AT&T, Verizon, Energy Transfer, Duke Energy, and Kinder Morgan—offer a solid starting point for further research and potential portfolio inclusion.
Read the Full NerdWallet Article at:
[ https://www.nerdwallet.com/investing/news/5-high-dividend-stocks-positive-ytd-returns ]