3 High Dividend Shares to Purchase in August

In a market full of volatility that appears much less and fewer reliant on fundamentals with every passing day, risk-adverse traders could also be higher off on the lookout for shares that generate dependable streams of passive revenue.

Dividend shares should not risk-free, after all. Nevertheless, so long as traders can achieve confidence in an organization’s capability to cowl and pay its dividends, they are often on their technique to persistently accumulating wealth in a extra predictable method, which can be preferable if market circumstances take a flip for the more severe. Listed here are three high dividend shares to purchase in August.

1. Realty Revenue: As constant as they arrive

The self-proclaimed Month-to-month Dividend Firm, Realty Revenue (O 1.28%) is an actual property funding belief (REIT). These are corporations recognized for paying robust dividends. REITs can keep away from paying company taxes in the event that they pay out over 90% of their taxable revenue to shareholders by way of dividends and observe different circumstances like incomes at the very least 75% of their revenue from qualifying actual property actions.

Their dividends can fluctuate together with their earnings, however Realty Revenue is as strong as they arrive. The corporate has a powerful 5.6% yield and has made consecutive month-to-month dividend funds for 3 a long time. It has additionally been capable of elevate its annual payout at a 4.3% compound annual development charge.

As a triple web lease operator, its tenants are chargeable for property taxes, property upkeep, and insurance coverage prices. These tenants might be able to negotiate decrease lease charges and have extra flexibility over their areas, which could be significantly useful for companies. Realty Revenue focuses on corporations in non-discretionary sectors, with low value factors, and service-focused tenants.

In 2024, it generated adjusted funds from operations (AFFO), which is sort of like free money move for a REIT, of $4.19 per share, whereas paying annual dividends of about $3.13 per share, which reveals the corporate can sustainably cowl its present dividend and proceed to lift it sooner or later.

2. Pfizer: Dedicated to the dividend

You’ve seemingly heard of big pharmaceutical firm Pfizer (PFE 0.84%) because of the function it performed in creating vaccines throughout the earlier days of the COVID pandemic. However because the highs it made in late 2021, the inventory has struggled and is definitely down about 34% over the past 5 years as of July 29. Because the pandemic has eased, gross sales of vaccines have declined, and traders have questioned what’s subsequent for the corporate.

In 2023, it acquired Seagen in a roughly $43 billion deal to spice up its drug pipeline, particularly associated to most cancers medication. Pfizer hopes the acquisition can add about $10 billion of income by 2030. In its first-quarter earnings presentation, the corporate additionally laid out a path to $7.2 billion of value financial savings by the tip of 2027.

After reducing its dividend in half in 2009, Pfizer has paid and elevated its quarterly payout yearly since and now has a 7.1% dividend yield. That is excessive, however the firm has a trailing-12-month free money move yield of 8.14%.

On the first-quarter earnings name, administration did face questions on its capability to take care of and develop the dividend, significantly with a few of its patents set to run out within the coming years, uncertainty over tariff charges, and whether or not or not President Donald Trump will impose tariffs on pharmaceutical corporations.

However Chief Monetary Officer David Denton stated a number of occasions that the dividend is an important a part of Pfizer’s capital allocation plan, and that the corporate plans to take care of it and develop it over time, with a “steadfast” dedication.

3. Sirius XM: Producing vital free money move

Digital audio firm Sirius XM Holdings (SIRI 0.28%) is one other turnaround story. The inventory has struggled immensely over the past 5 years and is down about 60% over that point. Nevertheless, administration has launched into a revival plan, and traders will likely be compensated with a virtually 4.7% yield whereas they wait.

Because the proprietor of Sirius satellite tv for pc radio and music streaming service Pandora, it has been met with vital competitors over time by corporations like Spotify and has seen subscribers decline in consequence. Final September, the corporate laid out a long-term plan so as to add 10 million subscribers, bringing its whole to roughly 50 million, and develop free money move by 50% to $1.8 billion.

Administration plans to do that by streamlining its know-how and pricing plans, rising its advert enterprise, and buying the promoting and distribution rights of big-name podcasts. Sirius appeared to have some momentum within the again half of 2024, with Sirius XM self-paying subscribers rising, however then the corporate noticed a web lack of over 300,000 subscribers within the first quarter of 2025.

Nonetheless, it’s fairly engaging as a dividend firm. It’s guiding for $1.15 billion of free money move this 12 months and at the moment is just projected to pay annual dividends of $364 million based mostly on its first-quarter determine, leaving a wholesome margin of security.