3 High-Yield Stocks That Are Screaming Buys in August

Core Viewpoint - The article highlights three high-yield investment opportunities: Black Hills, Brookfield Renewable, and Enterprise Products Partners, which offer significantly higher dividend yields compared to the S&P 500 index's yield of just under 1.3% [1][2]. Group 1: Black Hills - Black Hills is recognized as a Dividend King utility with a 4.4% yield, marking 51 consecutive years of annual dividend increases [3][4]. - The current yield is above the average utility yield of 3.2%, and despite concerns over leverage and interest rates, management maintains a positive outlook supported by a $4.3 billion capital investment plan [4][5]. - Earnings growth is projected at 4% to 6% through at least 2028, with dividends expected to grow in line with earnings, historically increasing by approximately 5% annually over the past three, five, and ten years [5][6]. Group 2: Brookfield Renewable - Brookfield Renewable offers two forms of investment: a partnership yielding 6% and a corporation yielding 5.1%, with the difference attributed to tax considerations [7]. - The company operates a globally diversified portfolio of renewable energy assets, including hydroelectric, solar, wind, and battery technologies, and does not have a regulatory monopoly [8][9]. - Brookfield Renewable aims for 5% to 9% annualized distribution growth, supported by a long history of distribution increases, making it an attractive option for income investors [10]. Group 3: Enterprise Products Partners - Enterprise Products Partners boasts the highest yield at 7%, owning a portfolio of fee-based midstream assets across the U.S., which are crucial for linking the U.S. energy market globally [11]. - The company benefits from charging fees for asset usage, making it less sensitive to fluctuations in oil and natural gas prices, with expected distribution growth in the low to mid-single digits [12]. - Historically, Enterprise has increased its distribution annually for 25 years, with a recent trend of annualized increases around 3%, suggesting a potential total annualized return of approximately 10% when combined with the yield [13].