3 Dividend Stocks With Yield Over 3%

Central banks are still talking about more interest rate hikes, and that leaves a lot of investors wondering where to find reliable income while cash rates and bond yields keep shifting. This is where companies that pay higher dividend yields, around 5% and comfortably covered by their profits, can matter. This article highlights three stocks from a high yield, well covered dividend screen that you may want on your radar.

The three stocks below are just a small sample from this idea, while the full screen surfaced 1,866 more companies with income profiles and dividend stories that are not covered here. To identify your own highest conviction candidates, head straight into the Dividend Powerhouses (3%+ Yield) screener to filter and analyze dividend stocks that fit your income goals.

Medtronic (MDT)

Medtronic is a global medical device company that sells therapies for cardiovascular, neuroscience and medical surgical conditions, with its high margin pacemakers, defibrillators and transcatheter valves forming the clearest link to a reliable, cash generative dividend profile. The Cardiovascular Portfolio is the largest contributor at about US$14.6b of revenue, followed by Neuroscience at US$10.5b, Medical Surgical at US$9.0b and Other at US$3.4b. Medtronic has a market value of roughly US$119.1b.

Income focused investors might look at Medtronic as a way to pair a dividend yield above 3% with a business that leans on recurring cardiovascular implant revenues and a long record of annual dividend raises. The company is working on margin improvement and a deep product pipeline in areas like cardiac ablation and robotics, which could support future earnings and dividend headroom, but there are also real pressures from underperforming segments, product recalls and the complex Diabetes spin off. With analysts assigning a higher fair value and keeping a close eye on execution risks, the key consideration is how much of that potential is already reflected in the current price and how much might still be ahead.

Medtronic’s dividend story hinges on whether its margin work and new therapies can significantly change the earnings profile or if legacy issues will continue to hold it back. Get the full picture in the analyst forecasts for Medtronic that could reframe the risk reward.

Canadian Natural Resources (TSX:CNQ)

Canadian Natural Resources is one of Canada’s largest oil and gas producers, using its upstream crude oil and natural gas output to support a regular, high dividend that aligns closely with the Dividend Powerhouses theme. Most revenue comes from Exploration and Production in North America at about CA$21.3b and Oil Sands Mining and Upgrading at about CA$20.8b, with smaller contributions from Midstream and Refining at roughly CA$1.0b and its North Sea and Offshore Africa operations. The company has a market value of around CA$145.4b.

Canadian Natural Resources may be worth a closer look if you want income that is tied directly to producing hard assets rather than more fragile business models. A 3.58% dividend yield, 26 consecutive years of dividend increases and strong recent profitability, including high return on equity and robust margins, point to a payout that is currently well supported by the underlying business. At the same time, reliance on oil sands, heavier use of external funding and expectations for declining earnings and revenue over the next few years mean the story is not risk free. The key consideration is how you weigh that income track record and ongoing buybacks against long term energy transition pressures and regulatory uncertainty, and that is where the investment case for Canadian Natural Resources starts to get interesting.

Canadian Natural Resources has an income story that appears strong on the surface, with that CA$145.4b scale and long dividend record potentially masking what really matters in the analysis report for Canadian Natural Resources

VICI Properties (VICI)

VICI Properties is an S&P 500 real estate investment trust that owns a large portfolio of gaming, hospitality and other experiential properties, with its long term, triple net leases on casinos such as Caesars Palace, MGM Grand and The Venetian providing the clearest link to the Dividend Powerhouses theme of stable, well covered income above 5%. The company generates about US$4.1b from real estate investment activities, almost entirely in the United States, and has a market value of roughly US$28.2b.

VICI Properties may appeal to investors who want high yield income built on long duration, rent based cash flows from some of the best known casino and entertainment assets in North America. Inflation linked lease escalators, recent acquisitions and a history of steady dividend increases indicate an income stream that is designed to grow, while high margins support the idea of durable payouts. The trade off is meaningful tenant concentration, growing use of lending to partners and a balance sheet that leans on external borrowing, all of which can test dividend resilience if cash flows soften. How that balance between dependable rent and financial risk develops is what makes VICI an interesting candidate to research further.

VICI Properties’ rent-backed cash flows and 5%+ yield could be masking a bigger story about tenant risk and leverage. Get the full 5 key rewards and 1 important major warning sign that may shift how you view this REIT

Curious To Explore Income Alternatives

Fresh dividend ideas can move fast. New income leaders gain momentum while others risk getting caught dropping out of favour. Scan these under the radar for now opportunities and act now.

• Lock in potential upside from quality businesses before momentum flies away by running the 47 high quality undervalued stocks that filters for strong cash flows and balance sheets.
• Target resilient companies built to endure rough markets by using the 82 resilient stocks with low risk scores that focuses on stocks with steadier risk profiles.
• Hunt for future compounders early by checking the 19 top founder-led companies that highlights companies still guided by their original founders.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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