3 Dividend Stocks Yielding Over 4% to Buy in April

Daniel Foelber, Scott Levine, and Lee Samaha, The Motley Fool

Wed, Apr 16, 2025, 2:45 AM 7 min read

Many companies reward shareholders by passing along a portion of profits through dividends. But oftentimes, the dividend yield on a stock might not be much to write home about. Many growth-focused companies don't pay dividends at all, which is why the yield on the S&P 500 (SNPINDEX: ^GSPC) has fallen to just 1.4%.

However, there are some companies that yield a considerable amount -- to the point where the dividend is a core part of the investment thesis. Stocks with reliable dividends and high yields can be excellent ways to collect passive income no matter what the broader market is doing.

Here's why these three fool.com contributors think Chevron (NYSE: CVX), Brookfield Renewable Partners (NYSE: BEP) (NYSE: BEPC), and MSC Industrial Direct (NYSE: MSM) are three high-yield dividend stocks to buy now.

Daniel Foelber (Chevron): Chevron stock is hovering around a three-year low. The sell-off in the integrated oil major could be a phenomenal buying opportunity for income investors.

The company has raised its dividend for 38 consecutive years, an impressive track record considering multiple oil and gas downturns and recessions have occurred during that period. The sell-off in the stock has pushed its yield up to 4.8%, providing investors with the opportunity to generate sizable passive income.

And Chevron has an excellent balance sheet that acts as a cushion in case of a prolonged oil and gas downturn. The company has used outsize profits in recent years to pay down debt and return cash to investors through buybacks and dividends. It has just $17.2 billion in net long-term debt and an ultra-low debt-to-capital ratio of just 13.6%, showcasing how its capital structure isn't dependent on debt.

Despite its strengths, Chevron will probably generate a lot less free cash flow (FCF) if oil prices stay at lower levels (they are at their lowest level in four years). And although the company has reduced its cost of production over time, there comes a point when it can no longer support its dividend and capital-spending plans with cash.

At current oil prices, management will likely pull back on capital spending and buybacks, but it still has a margin for error considering 75% of its oil investments can break even below $50 per barrel. The company has been testing its new "triple frac" technology, which could reduce costs and cut completion times for new wells in the Permian Basin.

Another advantage of Chevron over other producers is its geographic diversification. It isn't dependent on one region and has a massive refining business and growing low-carbon segment.