For income investors, opportunities abound in dividend stocks that combine attractive yields with long-term growth potential. While the market has been hovering near record highs, a handful of these companies stand out as particularly compelling. Here’s a look at four high-yield dividend stocks worth considering this month, each offering something unique to long-term investors.
Prologis (NYSE: PLD)
“Massive Scale and E-Commerce Tailwinds”
Prologis isn’t just the largest industrial real estate investment trust (REIT)—it’s the largest real estate stock of any kind. With a portfolio of 1.2 billion square feet spanning four continents, Prologis dominates the logistics real estate market. Its top tenants include Amazon, FedEx, Home Depot, and UPS, making it a critical player in the supply chain infrastructure.
Prologis benefits from e-commerce growth, which continues to drive demand for warehouses and distribution centers. Additionally, the company is entering the high-growth data center market, adding another layer of potential. Prologis also boasts a strong track record of profit and dividend growth, supported by a rock-solid balance sheet and efficient capital allocation. For investors seeking stability with growth upside, Prologis is a standout pick.
Realty Income (NYSE: O)
“The Monthly Dividend Machine”
Realty Income has earned its reputation as “The Monthly Dividend Company,” delivering consistent returns over decades. With over 15,000 freestanding properties leased to recession-resistant tenants like Dollar General, Wynn Resorts, and FedEx, Realty Income focuses on retail sectors that are insulated from e-commerce disruption.
The company’s dividend yield currently sits at 5.5%, with payouts made in monthly installments—perfect for income-focused investors. Over its 30 years as a publicly traded REIT, Realty Income has generated an impressive 14.1% annualized return and grown its dividend for 108 consecutive quarters. With a massive $14 trillion global market opportunity still ahead, Realty Income has room to scale and continue rewarding shareholders.
Ally Financial (NYSE: ALLY)
“A Profitable Bank with Auto Lending Expertise”
Ally Financial might not be the flashiest name in banking, but its focus on auto lending and online banking has made it a solid pick for income investors. With an average newly originated auto loan yield of 10.5% and manageable charge-off rates, Ally has built a highly profitable business.
The bank’s deposit costs, currently at 4.2%, are expected to decline as the Federal Reserve eases interest rates, positioning Ally as a beneficiary of the falling-rate environment. Its evolution into a full-service online bank with high-yield savings accounts, CDs, and brokerage offerings adds diversification to its revenue streams. For those with a moderate risk tolerance, Ally’s solid fundamentals and attractive valuation make it worth a closer look.
Toronto-Dominion Bank (NYSE: TD)
“A High-Yield Giant Working Through Challenges”
Toronto-Dominion Bank (TD Bank) has had its share of troubles, including regulatory fines and an asset cap in the U.S. following money laundering issues. These challenges have pushed the stock down by roughly a third since 2022, but they’ve also created an opportunity for long-term investors.
TD Bank’s Canadian operations remain strong, providing a solid foundation while the company works to regain regulatory trust in the U.S. In the meantime, investors can enjoy a historically high 5.2% dividend yield. While near-term earnings may be choppy as the bank adjusts, TD Bank has the financial strength to navigate these headwinds. For patient investors willing to think long-term, this discounted financial giant offers a compelling entry point.
These four high-yield dividend stocks each offer unique strengths, from Prologis’ dominance in logistics real estate to TD Bank’s recovery potential. Whether you’re looking for stability, income, or growth, these picks are worth considering for your portfolio. Remember, the best opportunities often lie in looking beyond the immediate challenges to the long-term potential.
