Invest $7,500 in These 3 High-Yield Dividend Stocks to Earn $1,000+ Annually
Investing in high-yield dividend stocks can significantly boost your passive income. With an initial investment of $7,500 in select stocks, you could earn over $1,000 annually. This article reviews three dividend stocks — Target, Chevron, and Texas Instruments — that are worthy of consideration for income-focused investors.
Target (TGT): A Value Play despite Challenges
Target has faced declining sales and increased competition from rivals like Walmart. Currently, the stock is trading near a six-year low. This downturn can be attributed to macroeconomic challenges and a series of public relations issues related to its diversity policies.
While many investors are cautious, Target remains a compelling opportunity. The stock trades at just 11.6 times its expected earnings. Its diluted earnings per share stand at $8.24, accompanied by $6.59 in free cash flow per share. Target has consistently rewarded shareholders, increasing dividends for 54 consecutive years, with a current yield of 5.4%.
Key Facts about Target
- Current Price: $90.62
- Market Cap: $41 billion
- Dividend per Share: $4.44
- Gross Margin: 25.36%
Chevron (CVX): Riding the Waves of the Energy Market
Chevron’s performance has been closely tied to oil prices, which surged in 2021 and 2022. However, recent years have shown declining stock prices due to lower oil prices affecting profit margins. Despite these challenges, Chevron remains a strong contender in the energy sector.
With investments in low-carbon projects and a notable refining sector, Chevron is positioning itself for future growth. The company’s recent acquisition of Hess has boosted its offshore production capabilities. Chevron offers a 4.6% dividend yield and has increased its dividend for 38 years, making it a robust choice for income investors.
Key Facts about Chevron
- Current Yield: 4.6%
- Dividend Increase Streak: 38 years
Texas Instruments (TXN): Stability in the Semiconductor Space
Texas Instruments is a leader in the semiconductor industry, specializing in analog and embedded chips. Although its stock has not seen significant growth recently, it plays a crucial role in various sectors, including automotive and communications.
While Texas Instruments faces cyclical market challenges, its strong track record makes it a solid option for those focusing on dividends. With a yield of 3.5%, the company has rewarded its shareholders with 22 consecutive years of dividend increases.
Key Facts about Texas Instruments
- Current Yield: 3.5%
- Dividend Increase Streak: 22 years
Conclusion
Investing $7,500 in these three high-yield dividend stocks could help you earn over $1,000 annually. Target, Chevron, and Texas Instruments each offer unique opportunities for investors seeking to enhance their passive income streams. Consider these stocks as potential additions to your portfolio for 2026 and beyond.
