My 3 Favorite High-Yield Dividend Stocks to Buy This September (1 Yields 6.4%)

Dividend-track records remain a key draw: Realty Income has raised its monthly dividend for 115 straight quarters, Verizon is set to extend its 20th consecutive year of dividend growth, and Energy Transfer has increased its distribution for 19 straight quarters. The article highlights current yields of ~5.2% (Realty Income), ~5.7% (Verizon), and ~6.4% (Energy Transfer), alongside coverage/cash-flow support (Verizon 1H operating cash flow of $18.4B covering $8.2B capex and $5.9B dividends; Energy Transfer 1H distributable cash flow of ~$5.3B vs $2.3B paid). Overall, it frames the trio as high-income, dividend-growth candidates with relatively resilient fundamentals rather than a near-term earnings catalyst.

Analysis

These names trade less like pure operating stories and more like long-duration cash-flow bonds. Over the next few days, Treasury volatility will matter more than the dividend headlines: if real yields ease, O should respond fastest because cap-rate and financing assumptions drive a bigger share of its equity value than incremental payout growth. VZ is the slower-beta expression; the market will only reward it if leverage and capex are both trending lower, not just because the distribution is safe.

ET is the cleanest relative-value expression because it is priced on project execution and access to capital, not on the headline distribution. That makes it better positioned if credit spreads stay contained and midstream throughput remains firm, but a delay in the capital program or a tighter funding window would quickly turn retained cash flow into dead money. O’s data-center optionality is real, but it is not near-term earnings support; until incremental NOI shows up, it remains a rate-sensitive income proxy rather than a growth compounder.

Contrarian view: the market may be overpaying for stability. A fresh move higher in the 10-year or a widening in high-yield spreads would compress multiples across the group even if the dividend raises land on cue, because income buyers typically de-risk first and ask questions later. The thesis is most vulnerable if the next earnings cycle shows weaker AFFO/FCF conversion or if management guidance turns the payout story into a purely defensive one.

Key Decisions for Investors

• Buy O only on rate-driven pullbacks, ideally after a 25-50 bps decline in the 10-year; pair it against VNQ/IYR to isolate net-lease quality from broad REIT beta. Best risk/reward is 1-3 months if bond yields soften; thesis breaks on a new high in long rates.
• Use ET as the relative-value long versus XLE/XOP on a 3-6 month horizon to isolate fee-based midstream cash flow from commodity beta. Exit if project timing slips, gas volumes weaken, or credit spreads start to widen materially.
• Treat VZ as a bond proxy, not a growth story: add only on post-rally pullbacks after the dividend event, and trim if the next print shows ARPU softness or capex re-acceleration. The stock’s multiple expansion is capped unless debt reduction accelerates.
• If the 10-year yield is making new highs or high-yield spreads are widening, do not add the basket; instead wait for the next macro catalyst before sizing. That is the cleanest falsifier for the income thesis.