Investing $25,000 in select high-yield stocks like Realty Income, Coca-Cola, Southwest Airlines, AGNC Investment, and Annaly Capital Management could generate an additional $8,665 in passive income annually, making them attractive options for building wealth and supporting retirement goals.
An emerging black swan threat is endangering mega-cap tech and high-yield stocks, potentially leading to a major market crash, prompting investors to shelter their portfolios against this growing risk.
With concerns about a potential market correction in 2025, investors are advised to consider low-volatility, high-yield Dividend Aristocrats as a safer alternative to traditional portfolios. These stocks offer a 3.2% yield, a 14% discount, and a 22% upside potential, while being less volatile than the S&P 500. Combining these Aristocrats with managed futures can enhance returns and reduce volatility. The Dividend Kings provide tools and model portfolios to help investors achieve strong income and financial stability.
Two ultra-high-yield dividend stocks, Realty Income and Enterprise Products Partners, with 25-year streaks of increasing payouts, are currently considered strong buys. Realty Income, a retail REIT, boasts a 6.04% yield and has a resilient portfolio of necessity-based tenants. Enterprise Products Partners, an energy midstream operator, offers a 7.3% yield and benefits from long-term, fixed-fee contracts, making it a stable investment despite the volatility in the fossil fuel industry.
Investing in high-quality dividend stocks over the long term can provide exceptional safe annual dividend income. Three high-yield stocks that can generate $300 in annual dividend income from an initial investment of $4,975 split equally are Realty Income with a 5.85% yield, Philip Morris International with a 5.78% yield, and AT&T with a 6.52% yield. These stocks offer strong competitive advantages, geographic reach, and steady operating performance, making them attractive options for income investors.
Investing in high-quality dividend stocks can provide a reliable source of income, with a study showing that dividend payers outperformed non-payers over the past 50 years. Three high-yield stocks that can generate $300 in annual dividend income from a $4,975 investment split equally are Realty Income, Philip Morris International, and AT&T. These stocks offer average yields of 6.05% and have strong fundamentals, including resilient tenants for Realty Income, pricing power and geographic reach for Philip Morris, and improved operating performance and balance sheet for AT&T.
Investing in high-quality dividend stocks has historically outperformed non-dividend payers, with an average annual return of 9.18% over a half-century. Three ultra-high-yield stocks offering monthly dividends are AGNC Investment with a 15.34% yield, PennantPark Floating Rate Capital with an 11.02% yield, and LTC Properties with a 7.48% yield. These stocks provide opportunities for super-safe monthly dividend income, with each requiring an investment of $32,000 split equally. AGNC is a mortgage REIT, PennantPark is a business development company, and LTC Properties is a healthcare REIT, each with unique strategies for generating income and managing risk.
A report by Hartford Funds highlights the outperformance of dividend-paying stocks over non-payers, making them an attractive option for investors. Three ultra-high-yield stocks with an average yield of 7.51% are recommended for generating $600 in super safe dividend income in 2024 with an $8,000 investment split equally. These stocks include Enterprise Products Partners, a midstream energy company; LTC Properties, a senior housing-focused real estate investment trust; and Innovative Industrial Properties, a cannabis REIT. Each company has demonstrated resilience and strategic positioning to provide consistent and substantial dividend income, making them appealing options for income investors.
The author discusses the importance of high-yielding stocks in their portfolio and highlights Enbridge (ENB) as a favorite high-yielding energy stock with a 7.3% yield. Enbridge operates a toll booth-like business model with a diverse portfolio of assets in the energy sector, including liquid pipelines, natural gas pipelines, gas utilities and storage, and renewable energy. The company's strong asset base and long-term global energy demand outlook support its reliable cash flows and dividends. Despite some risks related to global energy demand trends and legal issues, the author sees potential for double-digit total returns from Enbridge due to its undervalued shares and dividend growth.
Investing $94,000 in five high-yield stocks, including Medical Properties Trust, Pioneer Natural Resources, Ares Capital, Energy Transfer LP, and Devon Energy, could generate over $10,000 in annual dividend income. These stocks offer dividend yields ranging from 9.5% to 12.7%. While there are risks associated with investing in stocks, these companies have solid prospects if the U.S. economy remains stable. However, investors should exercise caution as stock prices can fluctuate and potentially offset dividend income.
Jim Cramer warns investors about Annaly Capital Management Inc., a high-yield stock with a 14% annual yield, calling it a trap due to its poor performance. Instead, he suggests three dividend plays that Wall Street finds attractive: Realty Income Corp., a REIT with a 5.1% annual yield; FirstEnergy Corp., an electric utility with a 4% annual yield; and Energy Transfer LP, which owns a large portfolio of energy assets and offers a 9.7% annual yield.
Investors seeking to accelerate their passive income snowball can consider high yield, high dividend growth stocks that also offer relatively low risk. Two such opportunities are Brookfield Asset Management (BAM) and Plains All-American (PAA)(PAGP). BAM, with a forward dividend yield of 4.1%, a debt-free balance sheet, and a strong growth profile, has the potential to deliver robust growth and consistent dividends. Plains, despite its checkered past, has sold off non-core assets, deleveraged its balance sheet, and offers an 8.1% yield that is well covered by distributable cash flow. With a promising distribution growth plan, Plains presents an attractive opportunity for maximizing current yield and growth.