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Seeking Income? 3 Top-Ranked High-Yield Stocks to Buy

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Dividends provide a passive income stream, limit the impact of drawdowns in other positions, provide more than one way to profit from an investment, and provide the ability to reap maximum returns through dividend reinvestment.

Three high-yield stocks – Manulife Financial Corp (MFC - Free Report) , Horizon Technology Finance (HRZN - Free Report) , and 3M (MMM - Free Report) – could all be considerations for those with an appetite for income.

All three sport a favorable Zacks Rank, indicating optimism among analysts. Let’s take a closer look at each.

Manulife Financial Corp.

Manulife Financial is one of the dominant life insurers, currently carrying a Zacks Rank #2 (Buy). Analysts have modestly raised their expectations across several timeframes over the last several months, reflecting optimism.

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MFC shares currently yield a solid 5.5% annually, with a sustainable payout ratio sitting at 47% of the company’s earnings. MFC has displayed a notable commitment to its shareholders, boasting a nearly 10% five-year annualized dividend growth rate.

Zacks Investment Research
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Horizon Technology Finance

Horizon Technology Finance makes secured loans to development-stage companies in the technology, life science, healthcare information and services, and cleantech industries. The stock is a Zacks Rank #2 (Buy), with earnings expectations increasing nearly across the board.

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It’s hard to ignore the company’s dividend metrics, with shares currently yielding a sizable 10.8% annually. Dividend growth is there, too, with the payout growing by a modest 1.5% over the last five years.

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Image Source: Zacks Investment Research

The company posted results that came in well above expectations in its latest release just on August 1st, delivering a 25% EPS beat and reporting revenue 7% ahead of expectations. Shares got a small boost post-earnings but have since faced selling pressure.

3M

3M manufactures various products, including abrasives, adhesive tape products, and consumer-electronics components. Like those above, analysts have shown optimism regarding the company’s earnings outlook, helping land the stock into a Zacks Rank #2 (Buy).

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3M shares yield a nice 5.7% annually, well above that of the general market. As shown below, the company’s dividend growth has cooled but has remained steady overall.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Let's face it - we all love payday.

All three high-yield stocks above – Manulife Financial Corp (MFC - Free Report) , Horizon Technology Finance (HRZN - Free Report) , and 3M (MMM - Free Report) – would be great considerations for those seeking hefty payouts in the near term.


See More Zacks Research for These Tickers


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3M Company (MMM) - free report >>

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Horizon Technology Finance Corporation (HRZN) - free report >>

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