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3 High-Yield Dividend Stocks I'm Not Selling Anytime Soon

I like the noun version of "yield" a lot more than I like the verb. One means making money. The other means giving up.

Admittedly, I don't have many stocks in my portfolio that pay high dividend yields. My positions tend to focus more on growth than on dividends. However, I do own a few high-yield dividend stocks. Here are three that I'm not selling anytime soon.

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1. AbbVie

AbbVie (NYSE: ABBV) is only one dividend increase away from becoming a Dividend King -- S&P 500 members with at least 50 consecutive years of dividend increases. I'm confident that promotion is on the way. That's especially encouraging considering that AbbVie's dividend yield already stands at nearly 4.8%.

Let's address the elephant in the room with AbbVie right out of the gate. The company's top-selling drug, Humira, faces biosimilar rivals in the U.S. beginning in 2023. AbbVie acknowledges that its revenue will slip when that happens.

The big drugmaker also has another potential problem. The U.S. Food and Drug Administration (FDA) recently slapped safety warnings and restrictions on JAK inhibitors. Peak sales for AbbVie's Rinvoq could be several billion dollars lower than initially expected as a result.

However, Rinvoq should still be a megablockbuster -- as will Skyrizi, AbbVie's other new autoimmune disease drug that isn't a JAK inhibitor. The company also has other growth drivers that should help offset the coming sales declines for Humira, notably including antipsychotic Vraylar and blood cancer drug Venclexta.

AbbVie recently announced that it's partnering with Regenxbio to gain rights to a late-stage gene therapy targeting wet age-related macular degeneration. I look for the company to make more business development deals to bolster its pipeline. That should enable AbbVie to deliver respectable growth that combined with its strong dividend generate solid total returns.

2. Devon Energy

Which S&P 500 member offers the highest dividend yield of all? Devon Energy (NYSE: DVN). Granted, the oil producer's dividend comes with a twist.

Devon's dividend contains two parts. The fixed portion gives investors a yield of only 1.1% or so. It's the variable component that makes Devon's dividend so juicy. Based on the company's guidance for the rest of this year, the total dividend yield should top 10%.

Earlier this month, my Motley Fool colleague Matt DiLallo picked Devon as his top oil stock to buy right now. I completely agree with Matt. Devon is arguably the best way for investors to profit from rising oil prices.

Even if oil prices fall somewhat, Devon should still be in great shape to keep those dividends flowing. I plan to ride this gravy train for a while.

3. Enterprise Products Partners

Wall Street analysts are especially bullish about another energy stock -- Enterprise Products Partners (NYSE: EPD). The consensus price target for Enterprise reflects an upside potential of 17%.

But the stock doesn't have to deliver anywhere near that gain to still make investors a lot of money. Enterprise's dividend currently yields 7.5%. Even modest share appreciation should be enough for the stock's total return to beat the market.

Oil and gas prices won't matter as much for Enterprise as they do for Devon. Enterprise focuses on the midstream sector. Its pipelines, storage facilities, and processing facilities are primarily fee-based.

Enterprise Products Partners is the world's largest exporter of liquified petroleum gas. The company is expanding its capacity to deliver liquid natural gas. Even with the shift to renewable energy sources, Enterprise should still have plenty of room to grow over the next decade and beyond.

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Keith Speights owns shares of AbbVie, Devon Energy, and Enterprise Products Partners. The Motley Fool owns shares of and recommends Regenxbio. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.


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