Best high-dividend stocks in March 2024 (2024)

Altria is one of the largest U.S. tobacco companies. In addition to cigarettes, Altria produces cigars, smokeless tobacco products and wine. The company’s subsidiaries include cigarette maker Philip Morris USA, cigar and pipe tobacco company John Middleton Co. and premium cigar and cigarette maker Sherman Group Holdings.

The tobacco industry faces tremendous regulatory risks related to the well-documented negative health implications of smoking, and Altria has reported negative revenue growth in three of the past four quarters. The combination of a sluggish tobacco market and the industry’s long-term regulatory risk is a difficult pill to swallow for many investors. Still, Altria has sweetened the pot by paying a quarterly dividend of 98 cents per share, or a yield of more than 9%. Meanwhile, Altria is developing cigarette substitutes, such as heated tobacco products.

British American Tobacco is one of the world’s largest tobacco product manufacturers. Its top brands include Camel, Newport and Lucky Strike cigarettes; Grizzly smokeless tobacco and Vuse e-cigarettes.

Like Altria, British American is dealing with declining U.S. cigarette volumes, branding challenges and regulatory risks. However, the company still managed 4.4% revenue growth in the first half of 2023, which was boosted by 26.6% revenue growth in its New Categories segment on a constant-currency basis. British American also rewards investors for their trust by paying a more than 70-cent quarterly dividend, or a yield of about 9%.

The company is also extremely profitable, reporting 61.4% growth in profit from operations in the first half of the year. British American expects its New Categories segment will become profitable for the first time in 2024.

AGNC Investment is a U.S. mortgage real estate investment trust (REIT). The company invests in Agency mortgage-backed securities that are guaranteed against credit losses by Fannie Mae, Freddie Mac or Ginnie Mae.

Unlike many other dividend stocks that pay out quarterly, AGNC pays its dividend monthly. Its 12-cent monthly dividend per share represents a yield of about 14.5%, making it an extremely attractive option for income investors. Unfortunately, AGNC has cut its dividend several times in the past decade, suggesting the possibility of more cuts to come at some point.

MBS investments tend to underperform in an environment in which U.S. Treasury security prices are unstable, a dynamic that has weighed on AGNC shares in 2023. However, with inflation declining, investors are hopeful that interest rates and bond markets will normalize in 2024.

Frontline is an international shipping company that owns and operates oil tankers and provides seaborne crude oil and oil product transportation. The company terminated a merger deal with fellow tanker company Eronav (EURN) in early 2023, telling shareholders it would instead focus on boosting its dividend. Frontline’s dividend is somewhat irregular on a quarter-by-quarter basis, but its current yield is about 13%.

Frontline reported $107.7 million in profits in the third quarter and paid a quarterly dividend of 30 cents, down from 80 cents in the second quarter. Frontline is also acquiring 24 modern very large crude carriers from Euronav that will increase its tanker footprint. There’s a good chance Frontline will once again raise its dividend in the coming quarters once it has completed the acquisition of Euronav’s VLCCs.

Alliance Resource Partners is a diversified natural resource company that generates operating and royalty income from coal and royalty income from oil and gas. It produces resources across the U.S. and is positioning itself as an energy provider for the future.

Alliance reported record oil and gas royalty volumes of 772 thousand barrels of oil equivalent (MBOE) in the most recent quarter, up 28.2% from a year ago. Alliance sold 8.4 million tons of coal in the third quarter and reported a net income of $153.7 million.

Alliance has cut its dividend in the past, slashing it to just 10 cents in May 2021, but it has steadily increased its dividend since then. In the past year, Alliance has paid a quarterly dividend of 70 cents per share, bringing its dividend yield to about 13%.