Marjorie Taylor Greene's High-Yield Dividend Picks: Should You Follow?

Marjorie Taylor Greene, the controversial congresswoman from Georgia, has made headlines not just for her political stances but also for her investment choices. Recently, she disclosed purchases of high-yield dividend stocks, including Devon Energy and Norfolk Southern. But should retail investors follow her lead? Let's dive into the details and assess the risks and rewards.



The High-Yield Dividend Strategy

Greene's investment in high-yield dividend stocks aligns with her broader philosophy of seeking stable and secure financial options. Her purchase of US Treasury Bills, which are considered one of the safest investment vehicles, underscores her preference for government-backed securities. However, her foray into high-yield dividend stocks suggests a more aggressive approach to generating passive income.

Devon Energy: A Volatile Play

Devon Energy, an exploration and production company, is one of Greene's recent picks. The company has a forward dividend yield of 3.9% and recently announced a 9% raise to its quarterly fixed dividend in 2025. However, the energy sector is known for its volatility, which adds to the risk. The energy sector is subject to fluctuations in oil and gas prices, which can affect the sustainability of dividends. Despite this, Devon Energy's commitment to rewarding shareholders with its dividend indicates a level of sustainability.



Norfolk Southern: A More Conservative Bet

Norfolk Southern, a freight rail company, is another of Greene's high-yield dividend picks. The stock has a 2.2% forward dividend yield and a payout ratio that has averaged 46.3% over the past five years. The railroad sector is generally considered more stable than the energy sector, but it is still subject to economic cycles and regulatory changes. Norfolk Southern's strong fourth-quarter 2024 financial results indicate a good return on investment, making it a more conservative option for income investing.

UPS: A Logistics Giant with a High Yield

UPS, the logistics stalwart, has returned capital to shareholders through its dividend, which it has maintained or hiked higher for 25 years. The stock now provides a robust ultra high dividend yield of 5.6%. The logistics sector is relatively stable, but UPS's stock plunged nearly 10% in January, indicating some level of risk. Despite this, UPS's 25-year history of maintaining or increasing the dividend indicates a high level of sustainability.

The Risks and Rewards

High-yield dividend stocks offer a balance of risk, return, and sustainability. They provide a steady stream of income with a moderate level of risk. However, investors should be aware of the potential volatility in sectors like energy and the economic cycles that can affect sectors like rail and logistics. In comparison to other investment options, such as high-growth stocks or bonds, high-yield dividend stocks offer a middle ground that can be appealing to risk-averse investors seeking income.

Should You Follow Greene's Lead?

Marjorie Taylor Greene's investment choices reflect a strategic approach to building a diversified portfolio that includes both growth stocks and dividend-paying stocks for steady income. However, her political controversies and the scrutiny surrounding her trading activities add an extra layer of complexity. Investors should conduct their own research and assess their risk tolerance before making investment decisions. High-yield dividend stocks can be a valuable addition to a portfolio, but they should be part of a well-rounded investment strategy that considers all potential risks and rewards.