Core Insights - Merck & Co., Inc. (NYSE:MRK) is recognized as one of the best high dividend stocks to buy under $100, highlighting its appeal to income-focused investors [1][4] - The company faces concerns regarding the expiration of existing patents and its reliance on the cancer therapy Keytruda for revenue, which is a common challenge in the pharmaceutical industry [2][3] - Merck's strong research and development capabilities, along with its ability to acquire smaller companies, position it well to maintain a robust product pipeline and continue its history of dividend growth [3] Dividend Performance - Merck has consistently rewarded shareholders with increasing dividends for the past 16 years, making it a standout choice among dividend stocks priced under $100 [4] - The current quarterly dividend is $0.81 per share, resulting in a dividend yield of 3.97% as of September 18 [4]

Group 1 - Mondelez International, Inc. is recognized as one of the best high dividend stocks to buy under $100, with a strong presence in the snack industry and a diverse portfolio of iconic brands [1][2] - The company has expanded its portfolio significantly since its formation in 2012, completing 10 acquisitions since 2018 to enhance its core categories and enter adjacent markets [3][4] - Mondelez has focused on acquiring brands that offer healthier or premium products, reinforcing its market presence and expanding into new categories [4] Group 2 - The company has demonstrated a commitment to shareholder returns, recently announcing a 6.4% increase in its quarterly dividend to $0.50 per share, marking 12 consecutive years of dividend growth [5] - As of September 18, Mondelez's stock has a dividend yield of 3.16%, making it an attractive option for dividend investors [5]

Group 1 - British American Tobacco p.l.c. (NYSE:BTI) is recognized as one of the best high dividend stocks to buy under $100, highlighting its attractiveness to income-focused investors [1] - The company has a significant presence in the tobacco industry, bolstered by its $49 billion acquisition of Reynolds American in 2017, and offers a diverse portfolio of brands including Camel, Newport, and Vuse [2][4] - Despite efforts to transition towards next-generation products, traditional cigarettes remain the primary revenue source, with a target of generating around £5 billion (nearly $6 billion) in next-gen sales by 2025, which may be impacted by recent US regulations [3] Group 2 - British American Tobacco has consistently increased its dividend payouts since 2018, currently offering a quarterly dividend of $0.7391 per share, resulting in a dividend yield of 5.61% as of September 18 [5] - The company's global reach distinguishes it from competitors, providing broad exposure across various tobacco products, including heated tobacco and vaporizers, making it a compelling option for dividend investors [4]

Group 1 - Bank of America Corporation (BAC) is recognized as one of the best high dividend stocks to buy under $100, ranking among the largest financial institutions globally with operations in the US and over 35 international markets [1][2] - The stock has shown significant growth, increasing nearly 107% over the past five years, with expectations to maintain this momentum driven by its consumer investment business [2] - In Q4 2024, BAC's consumer investment assets exceeded $500 billion for the first time, with management noting that these assets have doubled approximately every five years [3][4] Group 2 - The bank anticipates reaching $1 trillion in consumer investment assets over the next five years, with assets already rising to about $540 billion by Q2 2025, reflecting a 13% year-over-year increase [4] - BAC has a strong dividend history, having raised its payouts for 11 consecutive years, currently offering a quarterly dividend of $0.28 per share and a dividend yield of 2.15% as of September 18 [5]

McDonald’s Corporation (NYSE:MCD) is included among the Best Stocks for a Dividend Stock Portfolio. McDonald's Corporation’s (MCD) Dividend History: A Reliable Addition to Any Dividend Stock Portfolio McDonald’s Corporation (NYSE:MCD) is an American multinational fast food company. With a largely franchised model and strong operating margins, the company is able to turn a significant portion of its revenue into profit and cash flow, funding both dividends and share buybacks. Recent results also underscor ...

Core Viewpoint - The Federal Reserve has lowered interest rates by 25 basis points, marking the first cut in 2025, aimed at reducing inflation and alleviating financial pressure across various industries [1] Group 1: Market Impact - The reduction in interest rates makes Treasuries and other interest-generating instruments less attractive [1] - Investors with traditional 60/40 portfolios may consider rotating some investments into dividend stocks, as the value of bonds is likely to have risen [2] Group 2: Investment Opportunities - Industries that income investors should consider transitioning to include finance, utilities, and consumer staples, particularly those offering higher yields [2][6] - The stocks identified for investment came from a screening process that focused on annual dividend yield and strong analyst ratings [4][6] Group 3: Stock Selection - A total of 37 stocks were identified as worthy results from the screening process [5] - The focus is on selecting the highest-yielding stocks from each sector to avoid concentration in one industry, particularly noting that many results were REITs [7] Group 4: Featured Company - Hannon Armstrong Sustainable Infrastructure Capital Inc (HASI) is highlighted as a notable investment, focusing on climate-positive infrastructure projects with over $14 billion in managed assets [8]

Group 1 - CVS Health Corporation is recognized as one of the 15 Best Performing Dividend Stocks in 2025 [1] - The company has expanded beyond a pharmacy chain to include in-store clinics offering various health services and owns Aetna, covering approximately 36 million members, making it the fifth-largest insurer in the U.S. [2] - CVS holds a 27% share of the nationwide prescription market, with strong performance reflected in its second-quarter results, where both revenue and earnings exceeded Wall Street expectations [3] Group 2 - Management raised its full-year earnings guidance from $6.00–$6.20 per share to $6.30–$6.40, contributing to an 18% stock price increase in August [3] - CVS has been a consistent dividend payer since 1997, currently offering a quarterly dividend of $0.665 per share, resulting in a dividend yield of 3.64% as of September 15 [4]

Core Viewpoint - Investors are particularly attracted to dividend stocks with ultra-high yields due to their ability to provide substantial passive income and significant total return potential [1] Group 1 - Dividend stocks are favored by investors for their ability to generate passive income [1] - Ultra-high yield dividend stocks are seen as offering significant total return potential [1]

Group 1 - The Federal Reserve is expected to announce a policy decision regarding a potential 25-basis-point rate cut amid economic slowdown concerns [1][2] - Inflation remains above the Fed's 2% target, influencing the decision-making process for rate adjustments [2] - A rate cut is anticipated to positively impact dividend stocks, which have seen reduced appeal due to higher yields in fixed-income instruments [3] Group 2 - Gold stocks are likely to benefit from a Fed rate cut, as lower interest rates enhance the attractiveness of non-interest-bearing assets like gold [4] - Anglogold Ashanti is highlighted as a favorable investment for dividend seekers, with a quarterly payout of $0.125 per share and a commitment to distribute 50% of free cash flow as dividends [4]

Core Insights - Many income stocks, particularly in the real estate and pharmaceutical sectors, are currently undervalued despite discussions of potential interest rate cuts that could enhance the attractiveness of dividend stocks [2] Group 1: Investment Focus - The focus is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging opportunities [1] - The investment strategy emphasizes defensive stocks with a medium- to long-term horizon [2] Group 2: Market Conditions - The current market environment shows that income stocks remain beaten down in price, indicating potential investment opportunities [2]