TLDR
- Enterprise Products Partners offers 7.03% yield with 27 consecutive years of payout increases and predictable cash flow from midstream energy operations
- Pfizer yields 7.39% after share weakness, but shows organic growth excluding COVID-19 therapies and cost savings of $4.5 billion expected by year-end
- Realty Income provides 5.75% yield with 131 payout increases over three decades, leasing recession-resistant retail properties with 9.1-year average lease terms
- Three additional dividend stocks average 4.5% yield: Amgen at 3.1%, Bristol-Myers Squibb at 5.3%, and Portland General Electric at 5.1%
- All six companies show strong dividend sustainability through consistent payout growth and solid financial fundamentals
Dividend-paying stocks continue to outperform non-dividend stocks, delivering 9.2% annual returns versus 4.31% for non-payers from 1973 to 2024. Income investors seeking higher yields can find quality opportunities among companies with sustainable payouts and strong business fundamentals.
Enterprise Products Partners leads the ultra-high-yield category with a 7.03% dividend yield. The energy midstream company has raised its payout for 27 consecutive years while maintaining predictable cash flows through fixed-fee contracts.
The company operates as an energy middleman, transporting and storing oil and natural gas for drilling companies. This business model removes spot-price volatility from cash flow calculations, allowing Enterprise Products Partners to forecast operations one or more years ahead.
Enterprise Products Partners currently has over six major projects under construction totaling $5.6 billion in expenditures. These projects focus on expanding liquified natural gas exposure and should become operational by end of 2026.
The stock trades at a forward price-to-earnings ratio of 10.5, roughly in line with its five-year average. Despite being the third-priciest stock market on record, Enterprise Products Partners maintains reasonable valuations.
Healthcare Giants Offer Strong Dividend Yields
Pfizer delivers the highest yield at 7.39% after three years of share weakness following COVID-19 pandemic success. The pharmaceutical company generated over $56 billion in combined COVID-19 therapy sales in 2022, which fell to $11 billion last year.
Excluding COVID-19 therapies, Pfizer shows organic net sales growth over the past four years. Total sales including COVID treatments surged 52% between 2020 and 2024, making the company stronger and more diversified.
The $43 billion acquisition of cancer-drug developer Seagen in December 2023 added over $3 billion in annual sales. This deal also expands Pfizer’s cancer drug pipeline while providing cost synergy opportunities.
Management expects collective cost savings of $4.5 billion by year-end through manufacturing optimization programs. Pfizer’s forward price-to-earnings ratio of 7.5 represents a 26% discount to its five-year average.
Bristol-Myers Squibb offers a 5.3% yield, well above its five-year average of 3.7%. The company increased its dividend at a 7.6% annual rate over five years with a payout ratio below 50%.
Amgen yields 3.1% after a 5.8% dividend increase for 2025. The biotech company has grown its dividend at 9.2% annually since initiating payments in 2011.
Real Estate and Utilities Round Out Income Options
Realty Income provides a 5.75% yield with 131 payout increases over 30 years. The retail real estate investment trust owns over 15,600 commercial properties with 91% of rent coming from recession-resistant businesses.
The REIT focuses on stand-alone businesses that drive foot traffic including grocery stores, drugstores, dollar stores, and auto repair chains. Weighted-average lease length reaches 9.1 years, providing income stability.
Portland General Electric yields 5.1%, above its 4% five-year average. The utility increased dividends at 5.4% annually over five years with expected growth near 5% going forward to fund capital investment plans.
The stock trades at more than 20% discount to fair value estimates. Analysts expect dividend growth slightly slower than earnings growth due to capital requirements for the company’s investment program.
Final Thoughts
For income investors seeking high dividend stocks to buy in August, names like Enterprise Products Partners, Pfizer, and Realty Income offer strong yields backed by reliable cash flows and solid fundamentals. With dividends outpacing non-payers for decades, these companies stand out as compelling choices in today’s income-focused market.
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