3 High-Yield Dividend Stocks That Are Screaming Buys in October

Core Viewpoint - The article highlights the potential for income-focused investors to find opportunities in high-yield dividend stocks as interest rates are expected to decline, making these stocks more attractive [1][2]. Group 1: Interest Rate Impact - The Federal Reserve has announced a 50 basis point cut to the federal funds rate, with additional cuts likely in the coming year [1]. - Falling interest rates may drive investors towards the stock market, particularly dividend stocks, as they seek income [2]. Group 2: Recommended Dividend Stocks - Enbridge: - Current dividend yield is 6.5%, supported by a diversified business model in North America, including a pipeline network and renewable energy projects [4]. - The company has raised its dividend for 28 consecutive years, with a payout ratio of 65% of forecasted 2024 cash earnings, and expects dividend growth of 3% to 5% annually [5]. - AT&T: - Current dividend yield is 5%, with the company focusing on wireless communications after divesting from media assets [6]. - Anticipates $18 billion in free cash flow this year, with a dividend payout ratio of just over 40%, and potential for earnings growth of nearly 3% annually over the next three to five years [7]. - Dominion Energy: - Current dividend yield is 4.7%, with a focus on regulated electric utility operations and significant capital investments planned [8]. - The dividend currently represents 81% of guided 2025 earnings, with management waiting for the payout ratio to improve before raising it [9]. - The demand for electricity, particularly from data centers, could enhance growth prospects beyond current expectations [10].