Workflow
3 Top High-Yield Dividend Stocks I Can't Wait to Buy in May to Boost My Passive Income
The Motley Foolยท2025-05-01 08:45

Group 1: Coca-Cola - Coca-Cola has a current dividend yield of 2.9%, which is more than double the S&P 500's yield of approximately 1.4% [4] - The company has a strong history of dividend payments, with a 5.2% increase earlier this year, marking its 63rd consecutive annual dividend increase [5] - Coca-Cola generated $10.8 billion in free cash flow last year, an 11% increase, allowing it to cover its dividend and repurchase $1.1 billion of its shares [6] - The company expects organic revenue growth of 4%-6% annually and high-single-digit earnings-per-share growth, supported by a strong balance sheet for potential acquisitions [7] Group 2: Camden Property Trust - Camden Property Trust has a dividend yield of 3.7% and has consistently paid dividends at or above the previous year's rate for over 15 years, increasing it by more than 130% during this period [8] - The REIT focuses on high-growth markets, driving demand for rental housing and maintaining high occupancy rates [9] - Camden is investing $744 million to develop 1,935 rental homes and has plans for additional investments of $667 million for 1,325 more homes, which will enhance rental income streams [10] Group 3: Vail Resorts - Vail Resorts has a dividend yield of 6.3% and has paid out $1.9 billion in dividends over the past decade, with steady increases except for a pause during the pandemic [11] - The company generates predictable revenue by converting skiers to its Epic Pass, achieving over 10% annual free cash flow growth [12] - Vail Resorts invests in enhancing its ski resorts and plans to acquire other high-quality resorts, which should support future dividend growth [13] Group 4: Investment Summary - Coca-Cola, Camden Property Trust, and Vail Resorts exhibit strong characteristics as dividend-paying stocks, with higher yields and a history of steady increases [14]