Any time is a good time for income investors to buy dividend stocks. But certain times are better than others for specific stocks.
I think that's the case for several great picks with a new month underway. Here are three magnificent high-yield dividend stocks to buy hand over fist in August.
1. AbbVie
Many investors seemed to have all but thrown in the towel on AbbVie (ABBV -0.66%) until recently. Shares of the big drugmaker had plunged as much as 18% year to date by late June over worries about declining sales and profits.
However, AbbVie is now on a roll that could pick up momentum. The company reported better-than-expected second-quarter results. Sure, the loss of patent exclusivity for AbbVie's blockbuster drug Humira continues to be a major damper on overall revenue. But the pharma giant is showing there's life after Humira after all.
AbbVie's two newer autoimmune-disease drugs are crushing it. Sales for Rinvoq skyrocketed 55% higher year over year in Q2 to $918 million. Skyrizi's sales soared over 50% higher to nearly $1.9 billion. The company also had four other products generate double-digit percentage sales growth.
I suspect that more investors could jump aboard the AbbVie bandwagon with the narrative about the stock changing for the better. One part of AbbVie's story remains as great as ever, though: Its dividend program.
The company belongs to the elite group of stocks known as Dividend Kings thanks to its track record of 51 consecutive years of dividend increases. AbbVie's dividend yield of over 3.9% should also be quite attractive to income investors.
2. Brookfield Renewable
Scientists with the European Union and the World Meteorological Organization released a report last week maintaining that July is likely the hottest month on Earth in 120,000 years. The global heat wave is bringing renewed attention to climate change and efforts to reduce carbon emissions.
I think this could set the stage for even stronger investor interest in Brookfield Renewable (BEP -0.26%) (BEPC -0.70%). The company is a global provider of clean energy generated by hydroelectric, wind, solar, and distributed energy facilities.
The demand for renewable energy will almost certainly grow significantly in the coming years. Countries and corporations around the world are working to cut carbon emissions. Onshore wind and solar are also more cost-effective energy sources than coal and gas with the gap continuing to widen. Brookfield Renewable is aggressively building up its capacity to meet this demand.
Meanwhile, the company's distribution yield tops 4.5% for its limited partnership units and stands at 4.3% for its corporate entity shares. Brookfield Renewable expects to increase its distribution by 5% to 9% each year.
3. Enterprise Products Partners
Fossil fuels still run the world, though. And now the Federal Reserve thinks the U.S. economy won't enter into a recession. That could translate to stronger demand for oil and gas.
This is music to the ears of Enterprise Products Partners (EPD -0.23%). The midstream energy company operates over 50,000 miles of pipelines as well as other facilities involved in processing and storing hydrocarbons.
Enterprise Products Partners is arguably one of the best-managed companies in the midstream industry. Newsweek magazine recognized it as one of the most trustworthy U.S. companies in 2023. Enterprise's management team has plenty of skin in the game, owning close to 32% of common units.
The company has increased its distribution for 25 consecutive years by a compound annual growth rate of roughly 7%. Its distribution yield currently tops 7.5%. As was the case with AbbVie and Brookfield Renewable, describing Enterprise and its yield as "magnificent" isn't an exaggeration.
