In the world of investing, it’s common to focus on growth-centric ideas, especially in the technology sector. However, it’s important not to overlook passive income opportunities. High-yield dividend stocks may not be as flashy as betting on the next big thing, but they can provide stability to your portfolio during market fluctuations.
Dividend-paying companies offer a consistent way to grow your investments. Trying to predict winners and losers in the market is essentially guesswork, but companies that provide passive income typically have stable and predictable businesses. This reduces the guesswork involved and increases the potential for profit.
While there are risks associated with dividend-offering enterprises, some high-yield dividend stocks are backed by experts on Wall Street and align with relevant businesses. Here are a few high-yield dividend stocks worth considering:
Dow (DOW): Based in Midland, Michigan, Dow operates in the chemicals industry and offers a forward dividend yield of 5.07%. Analysts anticipate growth in earnings per share and revenue in the coming years.
Simon Property Group (SPG): Headquartered in Indianapolis, Indiana, Simon Property Group is a real estate investment trust that focuses on premier shopping destinations. It offers a forward yield of 5.42%.
Kinder Morgan (KMI): Located in Houston, Texas, Kinder Morgan specializes in the oil and gas midstream segment and offers a forward yield of 5.85%. The company has a history of annual payout increases.
KeyCorp (KEY): Based in Cleveland, Ohio, KeyCorp is a regional banking company that offers a forward yield of 6.05%. The company has been increasing its payout annually for the past 13 years.
Verizon (VZ): Headquartered in New York City, Verizon is a major player in the communication services sector. It offers a forward yield of 6.74% and has a history of consecutive payout increases.
Gaming and Leisure (GLPI): Hailing from Wyomissing, Pennsylvania, Gaming and Leisure is a specialty REIT that offers a yield of 6.96%. The company has seen modest growth in earnings and revenue.
Ambev (ABEV): Based in Brazil, Ambev operates in the brewery segment and offers the most generous yield on this list at 7.08%. The company is projected to see growth in earnings and revenue in the coming years.
These high-yield dividend stocks provide an opportunity for investors to earn passive income while also benefiting from potential capital gains. It’s important to consider the risks and do thorough research before investing in any stock.