The high-yield space has seen a resurgence in recent weeks and months, with many holdings bouncing back from earlier lows. Stocks like Brookfield Renewable Partners (BEP) and Brookfield Infrastructure Partners (BIP) have rebounded strongly, offering attractive returns in a short time frame.
Despite the recovery, there are still some big dividend stocks with solid growth potential trading at suppressed valuations. Two such stocks are Realty Income (O) and Enbridge (ENB), which offer appealing options for income-focused investors, especially retirees. Realty Income boasts a 5.9% forward dividend yield and steady growth in dividends and FFO per share. Enbridge, on the other hand, offers a roughly 7.5% dividend yield, consistent dividend growth, and a strong balance sheet.
For investors willing to take on more risk, EPR Properties presents an opportunity with an 8.5% forward yield. While there is some risk due to its exposure to AMC Entertainment (AMC), recent developments have reduced the likelihood of bankruptcy. EPR is actively diversifying its portfolio away from theaters and could offer significant upside potential if it successfully navigates its current challenges.
Overall, Realty Income, Enbridge, and EPR Properties provide investors with access to quality real asset businesses offering attractive current yields and potential for growth. Now could be a good time to consider these stocks, with Realty Income and Enbridge better suited for risk-averse investors, and EPR more suitable for those willing to take on higher risk for potentially higher returns.