4 high-dividend stocks, annual returns over 7000 dollars? Try this configuration.

The stock market has reached new highs, but the yield has hit new lows— the average dividend yield of the S&P 500 is only 1.2%, a 20-year low. Some savvy income investors have found a way out: turning to blue-chip stocks that have been abandoned by the market but offer stable dividends.

Analysts have selected 4 stocks that meet the criteria (S&P 500 constituents + Dividend yield ≥ 5% + Continuous increase in dividends for 5 years):

Conagra Brands(CAG)

• Dividend Yield: 8% (Cost of a 37% annual decline)
• Owns over 20 food brands including Birds Eye, Hunt's and more.
• Has increased for 6 consecutive years, with the price-to-earnings ratio nearing a 10-year low.

United Parcel Service(UPS)

• Dividend Yield: 6.9% (Annual decrease of 28%)
• The company has never reduced its Dividend since its establishment.
• The dividend payout ratio will decrease from 91% to a healthier level.

Pfizer(PFE)

• Dividend Yield: 6.9% (10-year high)
• 16 years of continuous increases, the pharmaceutical giant with the highest yield
• The dividend payout ratio is expected to be optimized from 98% to 75%

Verizon(VZ)

• Dividend Yield: 6.7%
• 21 consecutive years of increasing dividends, with the lowest payout ratio at only 57%
• Cheapest: The stock price is only 9 times the earnings for the next 12 months.

Core Data: Invest $25,000 in each, with an annual dividend of approximately $1,800-$1,960, totaling $7,140. This return is more than 5 times the average level of the S&P 500 and exceeds most money market funds and 10-year government bonds.

The key is that these 4 stocks have increased their dividends by an average of 6.3% per year over the past 5 years. At this rate, in 5 years, the annual dividend could grow to nearly $9200. This combination of yield and growth is the ideal income strategy.