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Why I've Backed the Truck and Loaded Up on These 3 High-Yield Dividend Stocks
HMCHonda Motor(HMC) The Motley Fool·2025-02-15 10:47

Group 1: Honda Motor - Honda Motor's stock has decreased by 20% over the last 12 months, and its planned acquisition of Nissan did not materialize [2] - Despite short-term challenges, Honda is ranked as the most reputable vehicle brand in the U.S. market according to the 2024 Axios Harris Poll 100, indicating strong long-term prospects [3] - The company offers a forward dividend yield of 5.15% and has repurchased nearly 121.5 million shares, enhancing its attractiveness [3] - The potential delay of President Trump's 25% tariffs on imports from Mexico could positively impact Honda, as approximately 80% of its vehicles made in Mexico are sold in the U.S. [4] Group 2: Prudential Financial - Prudential Financial has a long-standing history of over 145 years in the financial services industry, which adds to its credibility [5] - The stock is currently trading below 7.6 times forward earnings, significantly lower than the S&P 500 financial sector average of 17.4 [6] - Prudential offers a forward dividend yield of 4.87% and has a track record of 17 consecutive years of dividend increases, along with nearly $3 billion in stock buybacks last year [7] - The potential for deregulation under President Trump's administration may benefit Prudential, as it was previously lifted from extensive government oversight [8] Group 3: Verizon Communications - Verizon Communications has increased its dividend for 18 consecutive years, with a forward dividend yield of 6.7%, positioning it for double-digit percentage total returns [9] - The stock trades at below 8.7 times forward earnings, making it cheaper compared to its main competitor AT&T [10] - Verizon's total broadband connections increased by 15% year over year in Q4, and wireless service revenue rose by 3.1% year over year, marking 18 consecutive quarters of growth [10] - The company is leveraging artificial intelligence to enhance operational efficiency and profitability, with AI tools aimed at personalizing customer experiences [11]