High-Yield Dividend Stocks: Pfizer, UPS, and Chevron Trade at Discounts
Three high-yield dividend stocks - Pfizer (PFE), UPS (UPS), and Chevron (CVX) - have been trading at significant discounts to their five-year highs, despite their CEOs reaffirming their commitment to maintaining the payout.
Pfizer yields 6.15% on an annualized forward dividend of $1.72 per share, with management reiterating its confidence in maintaining the dividend, even in stretched scenarios. The company's operating cash flow was $3.45 billion in the second quarter, and it returned $4.9 billion to shareholders via the dividend in the first half.
UPS yields 6.39% on an annualized forward dividend of $6.56 per share, or $1.64 quarterly. Management guided full-year adjusted EPS of approximately $7.22 against a planned dividend payout of around $5.4 billion. Expected free cash flow is approximately $5.5 billion in 2026, matching the dividend.
Chevron yields 3.44% on a $1.78 quarterly payout, with an annualized forward dividend of $7.12 per share. The company's recent Q2 adjusted earnings came in at $6.06 per share, and it cut debt by more than $8 billion in the quarter.
These three names share durable cash flow, explicit CEO commitments to the payout, and multiyear cost programs that widen the coverage cushion each quarter. For income investors, the group offers a rare combination of skepticism-driven pricing and management teams putting the dividend first.