2 High-Yield Dividend Stocks to Buy Now and Help You Generate Passive Income

Group 1: United Parcel Service (UPS) - UPS is set to report its third-quarter 2024 earnings on October 24, with the stock currently trading less than 9% from its four-year low, indicating a critical period for the company [2] - The company has guided for full-year consolidated revenue of $93 billion, an operating margin of 9.4%, and capital expenditures of $4 billion, reflecting a pullback on spending to cut costs and restore margins [2] - UPS announced new three-year financial targets of $108 billion to $114 billion in consolidated revenue by 2026, with an adjusted operating margin above 13% and $17 billion to $18 billion in free cash flow [3] - The company returned to domestic volume growth for the first time in nine quarters, but the three-year targets may be delayed until 2027, necessitating more concrete measures to accelerate sales growth [3] - UPS currently yields 4.9%, with management prioritizing the maintenance of its current payout [3] Group 2: Kinder Morgan - Kinder Morgan's stock price increased less than 20% from 2016 to the end of 2023, while factoring in dividends, the total return was 77%, still underperforming the S&P 500's 170% total return during the same period [4] - The stock price surged over 40% year to date, and despite this rise, Kinder Morgan still yields 4.6%, indicating a high yield when the stock was previously undervalued [4] - The company has benefited from expectations of increased domestic natural gas demand and opportunities for higher exports, which are vital for justifying new project investments [5] - Concerns about Kinder Morgan's infrastructure assets losing value due to a shift towards renewables have persisted, but there are signs that natural gas will remain part of the energy mix in the medium term [6] - Kinder Morgan generates substantial cash to reinvest in the business and support its growing dividend payout, making it a reliable high-yield dividend stock [6]