Without a way to produce money while you sleep, you'll work until death." According to Warren Buffett, you should make your money work for you. By earning money without working, you can enhance your finances and retire early. That may seem unlikely in today's tough economy.
However, investing in dividend stocks and building wealth can allow early retirement. High-yielding equities like Pfizer (NYSE: PFE), Bank of Nova Scotia (NYSE: BNS), and AT&T might help you earn dividends right now. With $30,000 invested in these three equities, you may earn $2,000 in dividends.
1. Pfizer Pfizer is a top pharmaceutical business, but investors are negative. COVID product revenue is falling, and various patent cliffs compound top line problems.
However, Pfizer has been investing in its pipeline and acquisitions to develop and diversify. It bought oncology company Seagen for $43 billion last year. That deal might generate $10 billion in sales by the end of the decade, it says.
Investing in Pfizer demands faith that its strategy and plan will work. But investing in this stock isn't especially risky. Last year, sales dropped and restructuring and asset impairment charges cut profits, but the corporation still generated nearly $5 billion in free cash flow.
If Pfizer can add $25 billion in revenue by 2030, investors who pass on the stock today may regret it. The stock is extraordinarily inexpensive at 12 times its expected future earnings. Pfizer keeps paying dividends. At a discount, the yield is 6.5%, meaning a $10,000 investment would yield $650 in annual dividends.
2. Nova Scotia Bank Bank of Nova Scotia, situated in Canada, offers a 6.7% yield. Investors may trust this stock because it's one of Canada's top chartered banks. The bank's geographic focus on emerging economies makes it more unpredictable and riskier than its peers. Scotiabank, Bank of Nova Scotia, is still a solid long-term investment. Company dividends began in 1833.
The company's latest quarterly earnings, for the period ended Jan. 31, were strong. Revenue rose 6% to $8.4 billion Canadian dollars, and net income rose 25% to CA$2.2 billion.
Scotiabank is another cheap dividend company at less than 10 times its expected future profits and 1.1 times its book value. Your portfolio might earn $670 in annual dividends on $10,000 invested in the company. The bank stock regularly raises dividends, so that income will likely rise.