3 High-Yield Dividend Stocks Under $30 to Buy in August

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3 High-Yield Dividend Stocks Under $30 to Buy in August.

investing ideas :: 6hrs ago :: source - 24/7 wallstreet

By Joel South

Quick Read

Pfizer (PFE) yields 6% at $26 with five straight EPS beats, while Kinder Morgan (KMI) raised its 2026 outlook after a record quarter.
Prospect Capital (PSEC) delivers a 23% yield at $2.29 but faces a declining NAV and a $265M bond maturity in November.
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August is a natural moment to reset dividend portfolios. Rate-cut expectations have shifted, credit spreads are tight, and income investors are hunting for names where the yield is real, the payout is covered, and the entry point is affordable. The three names below all trade near or under $30, all pay above-average yields, and all just delivered results that speak to payout durability. One caveat up front: Kinder Morgan closed at $31.73 on August 12, so it currently sits just above the $30 line after a strong run. We are keeping it on the list as a pullback candidate to watch.

Pfizer (PFE)

Pfizer (NYSE:PFE) is the cleanest name on this list for income buyers: a mega-cap pharma trading below $30 with a covered, growing dividend and a pipeline turning the page from the COVID cliff. Shares closed at $26.31 on August 12, up 9.36% over the past month and 11.15% year to date. That momentum tracks a genuinely strong first quarter.

In Q1 2026, Pfizer posted revenue of $14.45B, beating expectations and rising 5.4% year over year, with adjusted EPS of $0.75 marking a fifth consecutive beat. Management reaffirmed 2026 guidance of $59.5B to $62.5B in revenue and $2.80 to $3.00 in adjusted EPS. CEO Albert Bourla said the company is "off to a strong start in 2026", calling out oncology and obesity as the standout areas.

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The dividend is the anchor. Pfizer pays $0.43 quarterly, or $1.72 annualized, and bumped the payout from $0.42 to $0.43 in 2026. That works out to a yield near 6.36%, which qualifies as ultra-high-yield by our threshold. Growth drivers back it up: Padcev grew 39%, Nurtec ODT/Vydura grew 41%, and the Vyndamax patent settlement extends U.S. exclusivity to June 2031.

The risk is the tail on legacy COVID franchises. Comirnaty revenue fell 59% and Paxlovid fell 63% operationally, and Pfizer expects a $1.5B unfavorable revenue impact from generic and biosimilar competition in 2026. The dividend looks safe; the growth rate will not.

PFE earnings explorer — PFE Earnings Explorer — 24/7 Wall St.

Kinder Morgan (KMI)

Kinder Morgan (NYSE:KMI) is the natural-gas infrastructure play. It is technically outside our $30 ceiling right now, but shares started 2026 at $26.72 and have gained 18.75% year to date, so any give-back into the high $20s would put it squarely back on the shopping list. The one-year return is 24.28%.

The fundamentals justify the re-rating. Q2 2026 revenue came in at $4.48B, a 6.76% beat and up 10.8% year over year, with EPS of $0.37 beating expectations. GAAP net income rose 21% to $867M. Management raised the 2026 outlook and now expects results more than 5% above the $8.6B Adjusted EBITDA budget and more than 12% above the $1.36 Adjusted EPS target. CEO Kim Dang described it as a "record second quarter."

The dividend was raised to $0.2975 quarterly, or $1.19 annualized, yielding roughly 3.76%. Growth is real: a $9.6B project backlog, 92% natural gas, with over 60% tied to power generation and LDC demand, plus natural gas transport volumes up 7% and gathering up 26% year over year. Moody's upgraded the credit to Baa1. Note that Kinder Morgan is a C-corp, not an MLP, so no K-1 headaches for holders.

Risks: refined products volumes fell 5% and crude/condensate volumes fell 16%, and any major pipeline expansion carries permitting risk. Price discipline is warranted given the recent run.

Prospect Capital (PSEC)

Prospect Capital (NASDAQ:PSEC) is the ultra-high-yield entry, and it comes with the standard BDC warning label: business development companies are required to distribute roughly 90% of taxable income, so payout ratios look extreme by design and dividends can flex with earnings. Shares closed at $2.29 on August 12, and the reported yield is around 23.6%.

The setup is contentious but improving. PSEC recently cut the monthly dividend from $0.045 to $0.035 effective May 2026, taking the annualized run rate to $0.42. Fiscal Q3 2026 returned to profitability with $26.4M in net income, or $0.05 per share, and NII of $78.5M ($0.16/share). Portfolio quality has shifted meaningfully: first lien senior secured middle-market loans now represent 72.0% of the portfolio at cost, up 790 basis points since June 2024, and interest coverage improved to 426%. The COO also bought roughly $2.75M of common stock in the open market, which is a real vote of confidence.

The risk case is equally direct. NAV per share slipped to $6.05 in March 2026 from $7.84 a year earlier, and net realized losses were $141.3M in Q2 and $79.1M in Q3. A $265.2M institutional bond maturity is due November 2026. The upcoming ex-dividend date of August 27, 2026, with a September 17 payment is a near-term catalyst for income buyers, but this is a name where position size matters.

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What to watch next: Pfizer's next payment lands on September 1, Kinder Morgan's on August 17, and refinancing progress at Prospect Capital ahead of that November maturity will determine whether the current $0.035 monthly rate holds.

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Contact editorial@247wallst.com for any questions or corrections.