2 High-Yield Dividend Stocks to Buy Right Now

Though there are plenty of dividend stocks on the market, they aren't all created equal. Consider that the average dividend yield for the S&P 500 (SNPINDEX: ^GSPC) is 1.3%, which is not particularly high.

Of course, there is more to income investing than chasing juicy yields; some quality dividend payers are not blessed in that department. However, sometimes, a juicy yield is what investors want to see.

With that in mind, let's consider two high-yield dividend stocks worth investing in: Pfizer (NYSE: PFE) and Medical Properties Trust (NYSE: MPW).

Image source: Getty Images.

1. Pfizer

Pfizer's shares have declined in the past three years because its performance in the coronavirus market waned. The company's revenue and earnings have been somewhat volatile, it is quickly approaching major patent cliffs such as that of Eliquis -- one of its best-selling medicines -- by the end of the decade, and it has yet to stumble upon a single massive blockbuster that will allow it to move past these issues, despite a string of brand-new approvals.

Pfizer could continue to struggle somewhat in the next few years due to these problems. However, the company's efforts should eventually pay off. Its pipeline features dozens of programs, including many other new clinical compounds.

Consider the company's prospects in oncology. Pfizer acquired Seagen, a cancer specialist, for $43 billion in 2023. The smaller Seagen was developing cancer drugs at an impressive rate, considering its size. With the backing of a larger, more experienced pharmaceutical company, Seagen's team should see even more success.

It won't happen overnight, but Pfizer plans to launch several billion-dollar cancer medicines in the next few years. The drugmaker is looking for gems in other areas, too, be it mRNA vaccines, immunology, rare diseases, and others.

Meanwhile, Pfizer is working on decreasing its expenses. The company is engaged in cost management efforts that management thinks will yield meaningful savings and margin expansions by 2027. It has already made progress toward that end.

Lastly, Pfizer is committed to maintaining and growing its dividend despite the issues it has encountered. Management reiterated this commitment during the company's first-quarter earnings call.

Pfizer's forward yield of 7.5% should be safe as cost savings allow the company to focus on its capital allocation priorities, including this one. Once Pfizer's pipeline efforts yield fruit, it is expected to have solid revenue, earnings, and dividend growth for a long time.

Pfizer may be down, but it's not out yet. Income investors willing to be patient and stick with the company for five years or more should seriously consider buying the stock at current levels.

2. Medical Properties Trust

It's been a volatile past few years for Medical Properties Trust, a healthcare-focused real estate investment trust (REIT). The company faced issues when two of its tenants, including its largest, stopped paying rent and later filed for bankruptcy. Unsurprisingly, MPT's revenue fell off a cliff, as did its funds from operations (FFO) and share price.

MPW Revenue (Quarterly) data by YCharts

The company also had to cut its dividend. It's not what investors wanted, but it was necessary for MPT to get back on the right track.

Medical Properties Trust has made significant progress in addressing these issues, though. It has replaced the facilities formerly occupied by its largest tenant with several new ones.

An important aspect of this move is that MPT's portfolio of occupants is now more diversified than before, making the company less prone to significant issues because of the financial troubles of a tenant or two. The average lease of these new contracts is about 18 years, so the company has secured nearly two decades of regular, predictable rental income.

Further, MPT has made progress in fixing its balance sheet through the sale of some facilities. It paid down significant amounts in debt and refinanced existing obligations to grant it more financial flexibility.

MPT's turnaround story is in full swing. That's why the stock has been on a run for months now. However, the company's shares remain down significantly over the past three years. There is plenty of upside left for the stock, and its dividend -- which comes with a forward yield of 6.3% -- looks a lot safer.

Should you invest $1,000 in Medical Properties Trust right now?

Before you buy stock in Medical Properties Trust, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Medical Properties Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $829,879!*

Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 19, 2025

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.