If you are searching for stocks with high dividend yields, look no further! It is essential to note that the stocks listed here are not necessarily the ones with the absolute highest yields. When screening for dividend stocks based solely on yield, you may come across stocks with triple-digit yields that are unsustainable and unlikely to be profitable. Remember, if it seems too good to be true, it probably is.
To identify worthwhile dividend stocks, always consider the payout ratio and look at the bigger picture. A sustainable payout ratio and profitability are crucial for a business to maintain its dividend payments in the long term.
With that in mind, let’s explore seven high dividend yield stocks that are sustainable:
1. SFL Corporation (SFL):
SFL is a maritime infrastructure company that owns and charters a diverse fleet of vessels and rigs. The company has reported impressive financial results, with growing revenues and a commitment to returning value to shareholders through increased dividends. SFL’s stock has seen significant growth in the past year and currently offers an attractive dividend yield of nearly 8%.
2. Ares Capital (ARCC):
ARCC is a leading business development company that provides financing solutions to middle-market companies. Despite a challenging lending environment, ARCC has posted solid results and offers an attractive dividend yield of 9.3%. The company is well-positioned to benefit from favorable market conditions and has a track record of outperforming across economic cycles.
3. Sixth Street Specialty Lending (TSLX):
TSLX provides financing solutions to middle-market companies and private equity sponsors. Despite economic challenges, TSLX remains well-positioned to deliver attractive returns and a sustainable high dividend yield. The company’s strong performance and outlook make it an appealing investment option for income-seeking investors.
4. Altria Group (MO):
Altria manufactures and sells tobacco products, including the smoke-free NJOY e-vapor product. The company has demonstrated strong pricing power and consistent earnings growth despite declining smoking rates. With an 8.4% dividend yield, Altria is a compelling choice for income investors looking for steady returns.
5. Sinclair (SBGI):
Sinclair is a diversified media company that operates local TV broadcasting stations across the United States. Despite recent challenges in the media industry, Sinclair remains a strong player with deep affiliations with major networks. The company offers a high dividend yield of 8.5% and has significant potential for growth and recovery.
6. Highwoods Properties (HIW):
HIW is a real estate investment trust that owns, develops, and manages office properties. The company has shown resilience in the face of economic headwinds and offers a dividend yield of 7.58%. With a strong leasing momentum and a focus on sustainable growth, HIW presents an attractive opportunity for long-term investors.
7. Western Union (WU):
Western Union provides global money transfer and payment services. Despite recent struggles, the company has a solid Q1 performance and is implementing strategies to drive growth and stability. With a dividend yield of 7.58% and a focus on returning capital to shareholders, Western Union is a promising choice for income investors.
In conclusion, these high dividend yield stocks offer sustainable returns and long-term potential for investors seeking income-generating opportunities. It is essential to conduct thorough research and consider your investment goals before making any investment decisions.