Core Viewpoint - Pfizer offers a high dividend yield of 7.1%, significantly above the S&P 500's 1.3% and the average healthcare stock's 1.7%, but Merck may be a better choice for dividend investors due to its more stable dividend history [1][6][12] Group 1: Company Comparison - Pfizer and Merck have similar business models, focusing on research and development to create new blockbuster drugs, supported by strong marketing and distribution systems [2][4] - Both companies have a history of making large acquisitions to enhance their drug portfolios, but their current positioning may vary based on their respective drug pipelines [5][11] Group 2: Dividend History - Pfizer has a history of 15 consecutive dividend increases, but it previously cut its dividend during the Great Recession, while Merck maintained its dividend during the same period [6][8][9] - Merck's more consistent dividend growth, despite periods of stagnation, provides a level of trust for income investors that Pfizer's past cut does not [9][12] Group 3: Investment Considerations - Both Pfizer and Merck offer portfolios of already approved drugs, allowing investors to engage in the pharmaceutical sector without needing deep industry knowledge [10][11] - For dividend investors, the historical performance of dividends is crucial, making Merck a potentially safer investment compared to Pfizer [12]

Core Insights - Business Development Companies (BDCs) are perceived as risky investments due to their unique business models, which involve lending to private, smaller, and sometimes financially distressed companies [1]. Group 1 - BDCs function similarly to banks but focus on private and smaller enterprises [1]. - The sector attracts investors who are interested in dividend investing, particularly in high-quality, dividend-paying companies [1].

Core Insights - The article emphasizes the importance of dividend investing in quality blue-chip stocks, Business Development Companies (BDCs), and Real Estate Investment Trusts (REITs) as a strategy for building wealth and achieving financial independence [1]. Group 1 - The author identifies as a buy-and-hold investor who prioritizes quality investments over quantity, aiming to supplement retirement income through dividends within the next 5-7 years [1]. - The article aims to assist hard-working lower and middle-class individuals in constructing investment portfolios that focus on high-quality, dividend-paying companies [1]. - The author expresses a desire to provide a new perspective to investors, helping them reach financial independence through informed investment choices [1].

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional, holding degrees in Civil Engineering & Mathematics and a Masters in Engineering with a focus on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to share insights and strategies [2]

Core Viewpoint - The U.S. markets have experienced volatility, but dividend-paying stocks can provide substantial passive income even during market fluctuations [1] Group 1: Verizon Communications - Verizon offers a sustainable 6.5% dividend yield, translating to $2.71 annually per share, and has raised its dividend for 18 consecutive years [5][6] - The company reported its highest-ever quarterly adjusted EBITDA of $12.6 billion in Q1 2025, with free cash flow of $3.6 billion and a dividend payout ratio of 64.2%, indicating strong earnings to cover dividends [6] - Verizon's convergence strategy has reduced customer churn by 40% to 50%, leading to predictable cash flows [7] - In Q1, Verizon added 339,000 broadband customers and 308,000 fixed wireless customers, aiming for 100 million premises with fiber and fixed wireless access [8] - The adjacent services business is expected to reach a $2 billion annual run rate by the end of 2025, with management guiding for 2% to 3.5% adjusted EBITDA growth [9] - Verizon is positioned as a smart buy for investors seeking passive income from high-quality companies [10] Group 2: AT&T - AT&T offers a solid 4.1% yield, translating to $1.11 per share annually, with a 68.1% dividend payout ratio, allowing for potential dividend increases [11] - The company reduced its net debt by $32 billion since 2020, ending Q1 2025 with a net debt-to-adjusted EBITDA ratio of 2.63 [12] - AT&T's revenues increased by 2% to $30.6 billion in Q1, with net income rising 23.6% year over year to $4.7 billion [12] - The company operates the largest fiber network in the U.S., expecting to reach 30 million fiber locations by mid-2025 and 50 million by 2029, driving strong customer growth [13] - Bundling services has created stickier customer relationships, making AT&T an appealing pick for income investors seeking defensive dividend growth [14] Group 3: AbbVie - AbbVie offers a 3.52% yield with an annual payout of $6.56 per share and has a history of increasing dividends for 53 consecutive years [15] - Despite losing patent protection for Humira, AbbVie has diversified its portfolio and reduced reliance on the drug, with next-generation drugs generating $5.1 billion, a 65% year-over-year increase [17] - The company is focusing on strategic investments, including a $350 million obesity partnership and a $2.1 billion acquisition of Capstan Therapeutics, positioning itself in high-growth areas [18] - Recent IPR&D and milestone expenses have negatively impacted second-quarter earnings guidance, but these deals may drive long-term growth [19]

Group 1: Investment Opportunities - Discount brokerages have eliminated trading fees, making it easier for small investors to participate in the market and achieve similar returns as wealthier investors [1] - Healthpeak Properties and Pfizer are highlighted as attractive investment options, both offering dividend yields above 6% [2] Group 2: Healthpeak Properties - Healthpeak Properties is a healthcare-related real estate investment trust (REIT) that expanded through a merger with Physicians Realty Trust, focusing on laboratories rented to drugmakers [4] - The REIT's portfolio includes medical office buildings, with health systems and physician groups contributing 55% of annualized base rent, while drugmakers account for 34% [5] - HCA Healthcare is the largest tenant, responsible for 10.1% of annualized rent, followed by CommonSpirit Health at 2.9% [6] - Management expects funds from operations (FFO) to be between $1.81 and $1.87 per share, supporting a potential increase in the current annualized dividend payout of $1.22 per share [7] - Most properties are under net leases, allowing for predictable rent increases and steady dividend growth over the long term [8] Group 3: Pfizer - Pfizer's stock has decreased by approximately 60% from its peak in 2021, but it continues to provide a strong dividend yield of 6.9% [10] - Concerns about future cash flows arise from expected revenue losses of $17 billion to $18 billion due to patent expirations starting in 2026 [11] - Total sales reached $62.5 billion in the 12 months ending March, making it challenging to offset revenue losses from patent cliffs [12] - The company has received nine FDA approvals in 2023 and anticipates generating $20 billion in annual revenue from new products by 2030 [13] - Pfizer's $43 billion acquisition of Seagen in 2023 enhances its portfolio with cancer therapies, and in-house manufacturing could improve profit margins [14] - While rapid dividend increases are not expected, steady growth in payouts is likely, making it a smart addition to a diversified portfolio [15]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The strategy of buying and holding income-generating assets can enhance total returns compared to non-income producing growth stocks [2] - The article emphasizes the importance of dividends in boosting total returns [2] Group 2 - The content is intended for informational purposes and does not constitute financial advice [3] - Past performance is not indicative of future results, and no specific investment recommendations are provided [4]

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional, holding degrees in Civil Engineering & Mathematics and a Masters in Engineering with a focus on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value in investment strategies [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to engage and share insights [2]

He is the leader of the investing group The Dividend Dog Catcher , where he shares a minimum of one new dividend stock idea per week with focus on yield or extraordinary financial circumstances. All ideas are archived and available after weekly announcement. Learn moreAnalyst’s Disclosure:I/we have a beneficial long position in the shares of T either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it ( ...

Core Insights - The author transitioned from a traditional financial career to focus on personal finance education through online platforms [1] Group 1: Background and Experience - The author has a background in finance-marketing, holding a bachelor's degree, CFP title, and an MBA in financial services [1] - The author worked in private banking for five years before deciding to pursue a different path [1] Group 2: Career Transition - In 2016, the author left the financial industry to travel across North America and Central America with family, which was a transformative experience [1] - In 2017, the author quit the financial job to help others with personal finance through investing websites [1]