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Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.
Dividend stocks are a favorite among investors for good reason. They provide a stable and reliable income stream and offer a promising avenue for total return. Total return is a comprehensive measure of investment performance encompassing interest, capital gains, dividends, and distributions realized over time.
After a slew of data showed that inflation is easing, many on Wall Street feel that the first cut for the benchmark rate could come in September. The Federal Reserve has held the current funds level the same since late July 2023. While a 25-basis point decrease likely won't help the economy, it could increase the buying of high-yield dividend stocks as investors start to plan for an easing cycle that could pick up steam in 2025.
We screened our 24/7 Wall St. high-yield dividend stock universe looking for companies that will benefit from the coming rate reduction and found five stocks investors should grab now. They also should take advantage of this free dividend legends report as well.
British American Tobacco
British American Tobacco manufactures and sells cigarettes, tobacco, and other nicotine products, including electronic cigarettes.
This European giant continues to print money, has a vast product line, and pays a massive 9.11% dividend. British American Tobacco PLC ( NYSE: BTI ) offers:
- Vapor
- Tobacco heating
- Modern oral nicotine products
- Combustible cigarettes
- Traditional oral products, such as snus and moist snuff
The company offers its products under these brands:
- Vuse
- Glo
- Velo
- Grizzly
- Kodiak
- Dunhill
- Kent
- Lucky Strike
- Pall Mall
- Rothmans
- Camel
- Natural American Spirit
- Newport
- Vogue
- Viceroy
- Kool
- Peter Stuyvesant
- Craven A
- State Express 555
- Shuang Xi brands
Bristol-Myers Squibb
Bristol Myers Squibb is a global biopharmaceutical company committed to discovering, developing, and delivering innovative medicines.
This top company remains a solid pharmaceutical stock to own long-term, offering an outstanding entry point and a massive 5.45% dividend. Bristol-Myers Squibb Co. ( NYSE: BMY ) discovers, develops, licenses, manufactures, and markets pharmaceutical products worldwide.
The company offers products in these therapeutic classes:
- Hematology
- Oncology
- Cardiovascular
- Immunology
Bristol-Myers Squibb products include:
- Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma
- Opdivo for anti-cancer indications
- Eliquis, an oral inhibitor indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE
- Orencia for adult patients with active RA and psoriatic arthritis, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis
The company also provides:
- Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia
- Yervoy for the treatment of patients with unresectable or metastatic melanoma
- Abraxane, a protein-bound chemotherapy product
- Implicit for the treatment of multiple myeloma
- Reblozyl for the treatment of anemia in adult patients with beta-thalassemia
BXP
BXP operates as a real estate investment trust. It develops, acquires, manages, and owns a portfolio of Class A properties.
This quality real estate giant offers size, safety, and a hefty 5.80% dividend. BXP Inc. ( NYSE: BXP ) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets:
- Boston
- Los Angeles
- New York
- San Francisco
- Seattle
- District of Columbia
Including properties owned by joint ventures, BXP's portfolio totals 53.5 million square feet and 187 properties, including 11 properties under construction/redevelopment.
BXP's properties include 165 office properties, 14 retail properties (including two under construction/redevelopment), seven residential properties (including two under construction), and one hotel.
BXP is well known for its in-house building management expertise and responsiveness to clients' needs.
BXP holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers, and build-to-suit projects for a diverse array of creditworthy clients.
Enbridge 
Enbridge owns and operates pipelines throughout North America, transporting crude oil, natural gas, and natural gas liquids. It also generates renewable energy.
Enbridge owns and operates pipelines throughout Canada and the United States. This is an off-the-radar idea based in Canada, which looks poised to break out to new highs soon and pays a solid 7.49% dividend. Enbridge Inc. ( NYSE: ENB ) operates as an energy infrastructure company.
The company operates through five segments:
- Liquids Pipelines
- Gas Transmission and Midstream
- Gas Distribution and Storage
- Renewable Power Generation
- Energy Services
The Liquids Pipelines segment operates pipelines and related terminals in Canada and the United States to transport various grades of crude oil and other liquid hydrocarbons.
The Gas Transmission and Midstream segment invests in natural gas pipelines and gathering and processing facilities in Canada and the United States.
The Gas Distribution and Storage segment is involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario and natural gas distribution and energy transportation activities in Quebec.
The Renewable Power Generation segment operates such assets as wind, solar, geothermal, and waste heat recovery facilities, as well as transmission assets in North America and Europe.
The energy services segment provides energy marketing services to refiners, producers, and other customers, as well as physical commodity marketing and logistical services in Canada and the United States.
TotalEnergies
TotalEnergies is an integrated energy and petroleum company founded in 1924 and is one of the seven supermajor oil companies.
This French-integrated giant is an excellent way to play the energy sector from the European side. It sports a hefty 4.89% dividend. TotalEnergies S.E. ( NYSE: TTE ) is an integrated oil and gas company worldwide.
The company operates through four segments:
- Exploration & Production
- Integrated Gas
- Renewables & Power
- Refining & Chemicals
- Marketing & Services
The company's Exploration & Production segment involves oil and natural gas exploration and production activities in approximately 50 countries.
The Integrated Gas and Renewables & Power segment engages in:
- Liquefied natural gas (LNG) production
- Shipping, trading, and regasification activities
- Trading of liquefied petroleum gas (LPG), petcoke and sulfur, natural gas, and electricity
- Transportation of natural gas
- Electricity production from natural gas, wind, solar, hydroelectric, and biogas sources
- Energy storage activities and development and operation of biomethane production units, as well as provides energy efficiency services
The TotalEnergies Refining & Chemicals segment refines petrochemicals, including olefins and aromatics, and polymer derivatives, such as polyethylene, polypropylene, polystyrene, and hydrocarbon resins. It also converts biomass and processes elastomers. This segment also trades and ships crude oil and petroleum products.
Its Marketing & Services segment produces and sells:
- Lubricants
- Supplies and markets petroleum products, including bulk fuel, aviation and marine fuel, special fluids, compressed natural gas, LPG, and bitumen, as well as fuel payment solutions
The company also operates approximately 15,500 service stations.
Verizon Communications 
Verizon Communications, commonly known as Verizon, is an American multinational telecommunications conglomerate.
This top telecommunications company offers tremendous value, trading at just 8.75 times estimated 2025 earnings and paying investors a hefty 6.42% dividend. Verizon Communications Inc. ( NYSE: VZ ), through its subsidiaries, provides communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide.
It operates i n two segments:
- Verizon Consumer Group
- Verizon Business Group
The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements.
It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:
- Smartphones
- Tablets
- Smartwatches, and other wireless-enabled connected devices.
The segment also offers wireline services in the Mid-Atlantic, Northeastern United States, and District of Columbia through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network.
The Business segment provides wireless and wireline communications services and products, including:
- FWA broadband
- Data
- Video and conferencing
- Corporate networking
- Security and managed network
- Local and long-distance voice
- Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally
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