1.Verizon Communications
VZ (NYSE)
Verizon Communications (VZ) presents an attractive opportunity for investors seeking reliable income, boasting a substantial dividend yield of 6.86%. Currently trading at a 25% discount to its fair value, the stock is recognized as undervalued, making it a highly rated option for those looking towards 2026. Analysts have a consensus rating of Buy, with a 12-month price target range of $41.00 to $49.00, suggesting solid potential for future performance.
Pros:
- Undervalued stock with a high dividend yield
- Strong market position in telecommunications
Cons:
- Recent negative returns over the past year
- Intense competition in the telecommunications sector
2.Realty Income
O (NYSE)
Realty Income (O) stands out as a popular REIT, well-regarded for its monthly dividend payouts, currently boasting a yield of 5.30%. Analysts maintain a consensus rating of "Hold," with a median 12-month price target of $61.00, reflecting its reputation as a reliable choice for income investors. With an impressive one-year return of 8.79% and solid performance history, O remains an attractive option for those seeking consistent income from financially healthy companies.
Pros:
- Reliable monthly dividends
- Strong historical performance as a REIT
Cons:
- Limited growth in the last five years
- Market volatility affecting REITs
3.Energy Transfer
ET (NYSE)
Energy Transfer (ET) stands out as a strong dividend payer within the energy sector, boasting an impressive yield of nearly 8%. Despite some recent underperformance, with a 1-year return of -9.48%, the stock is regarded as undervalued and has potential for growth, particularly as analysts project a median 12-month price target of $19.00. Investors seeking reliable income may find ET appealing, especially given its historical 5-year return of 177.43%.
Pros:
- High dividend yield
- Strong historical returns over five years
Cons:
- Recent negative performance
- Complex business structure and reliance on crude oil prices
4.Healthpeak Properties
DOC (NYSE)
Healthpeak Properties (DOC) emerges as a compelling option for investors seeking a high yield, currently offering a dividend yield of 6.31%. Despite facing challenges, including a 1-year return of -16.46%, the stock is trading at a significant discount to its fair value, making it a top pick for 2026. Analysts project a median price target of $20.00, reflecting a cautious yet optimistic outlook amidst current market concerns.
Pros:
- High dividend yield
- Focus on healthcare-related real estate
Cons:
- Significant decline in value over the past five years
- Market concerns regarding healthcare sector performance
5.Edison International
EIX (NYSE)
Edison International (EIX) stands out as a top-rated utility stock, boasting a high dividend yield of 5.75% and a solid track record with consistent growth. Analysts project a median 12-month price target of $59, indicating potential upside, while the company has demonstrated resilience with an 8.38% return over the past year. Investors can take comfort in EIX's strong history of dividend payments, having increased its payouts for 22 consecutive years, making it an attractive option for those seeking reliable income.
Pros:
- Consistent dividend growth history
- Strong performance in the utilities sector
Cons:
- Recent underperformance in the market
- Potential regulatory risks in the utility sector
Final Words
As you consider the best high-yield dividend stocks this February, remember that options like Verizon Communications offer attractive yields and potential for growth. Take time to compare these opportunities and conduct your own research to make informed investment decisions.
Frequently Asked Questions
Verizon Communications (VZ) is currently trading at a 25% discount to fair value and offers an approximate 7% dividend yield, making it an attractive option for dividend investors. The stock has a market cap of $165.79B and is part of the telecommunications services sector.
Verizon Communications has a dividend yield of approximately 6.86%, which is appealing for income-focused investors. The dividends are distributed quarterly, with the next dividend payment set at $0.6900.
Verizon's recent performance shows a YTD return of -2.96% and a 1-year return of -3.25%. While it has faced challenges over the past few years, it remains undervalued compared to its fair market value.
Investors should be aware of the market volatility associated with dividend stocks, as well as the potential for dividend cuts during economic downturns. It's essential to assess a company's financial health and payout ratios before investing.
When comparing high-yield dividend stocks, look at key metrics such as dividend yield, payout ratio, historical dividend growth, and overall financial stability. Analyzing these factors can help you identify the most reliable and sustainable dividend stocks.
Verizon's strong dividend yield and undervaluation make it a compelling choice for long-term investors seeking income. However, potential investors should consider its recent performance trends and market conditions before making a decision.
