Top High-Yield Dividend Stocks in 2024 Poised to Generate $10,000 in Annual Passive Income

While the appeal of high-growth businesses promising market-beating returns is compelling, the associated volatility can be disconcerting. Therefore, considering steadier, slower-growth businesses may constitute a more judicious investment strategy. Allocating a total investment of $125,000 among the following four high-dividend-yield companies has the potential to yield an additional $10,000 in dividend income for your portfolio this year.

The Motley Fool listed down companies that can offer an enticing opportunity to establish positions in 2024.

Rithm Capital: 9.7% dividend yield

Rithm Capital, a REIT boasting a 9.7% dividend yield, makes for a compelling investment with potential. REITs, mandated to distribute at least 90% of taxable income, could yield about $3,000 in dividends with a $31,250 investment.

Amidst a high-interest-rate environment, Rithm benefits from tightened bank lending standards, offering opportunities in real estate and mortgages. Despite concerns tied to interest rate policies, Rithm's stock, trading at a P/B multiple of 0.84, is below its 10-year average, contrasting with competitors like Starwood Property Trust and Annaly Capital Management.

While market sentiment may undervalue Rithm due to its interest rate exposure, its decade-long performance indicates a total return of over 140%. With a diverse service portfolio and the chance to capitalize on marketplace disparities, Rithm seems poised for sustained success.

Altria: 9.5% dividend yield

Altria (NYSE: MO), a tobacco giant with a 9.5% dividend yield, navigates challenges amid declining demand for traditional products and economic pressures. Diversifying into smokeless tobacco and vaping markets, the company adapts to industry changes. With a forward P/E multiple of 8.3, well below the S&P 500's 21.7, Altria appears undervalued.

Zacks Investment Research forecast that Altria is well-positioned for 2024 as it navigate the market's complexities.

As a Dividend King, raising dividends for over 50 consecutive years, it showcases resilience. Despite industry shifts, a $31,250 investment could yield over $2,900 in dividends, making Altria an appealing choice for investors seeking both potential appreciation and reliable dividend growth.

Verizon Communications: 6.8% dividend yield

Verizon Communications (NYSE: VZ), the telecommunications provider at No. 3 with a 6.8% dividend yield, operates in a commoditized sector where competition on price is fierce. Despite a 3% stock decline in the past year, Verizon excels in generating robust free cash flow, allowing consistent shareholder rewards.

Having raised its dividend for the 17th consecutive year in September, Verizon's stability might be overlooked by investors seeking higher growth. With a 6.8% yield, a $31,250 investment could potentially yield over $2,100 in dividend income, making Verizon appealing for dividend-focused investors.

AT&T: 6.4% dividend yield

AT&T (NYSE: T), the last company with a 6.4% dividend yield, stands out as a competitor to Verizon. Unlike Verizon, AT&T is increasing revenue, and its strong cash flow has allowed it to improve its balance sheet and pay off debt. Despite these positive moves, AT&T faced investor skepticism after a dividend cut in 2022, leading to its stock trading near three-decade lows.

While doubts linger about management's efficiency post-dividend cut, I view the current stock price as a buying opportunity. With an improving net debt position, the dividend seems relatively secure. At a 6.4% yield, a $31,250 investment could yield $2,000 in dividend income, contributing to a total passive income of $10,000. Investors may find AT&T's current valuation and dividend potential attractive.