Ten Big Dividend Investments Worth Considering – Part 1


It continues to be challenging for income-seeking investors to find satisfying yields as central banks around the world keep interest rates abnormally low. For your consideration, we’ve listed (below) ten publicly traded investments that offer big yields, and the potential for significant price appreciation. The list includes common stocks, preferred stocks, Real Estate Investment Trusts (REITs), Master Limited Partnerships (MLPs) and Business Development Companies (BDCs). Without further ado, here is the list:

10. Stag Industrial (REIT, 6.8%)
Stag Industrial (STAG) is a well-managed Real Estate Investment Trust (REIT) with a big 6.8% dividend yield. Its strategy is to reduce risk an exploit inefficiencies in the highly-fragmented, higher-yielding, secondary and tertiary industrial real estate market. Specifically, Stag believes it can maximize the risk/reward tradeoff by assembling a diversified portfolio of these industrial properties. Barring a severe economic downturn, we believe Stag’s growing dividend is safe, and we expect the stock to deliver superior total returns. You can read our full report on Stag here.

9. Tsakos Preferred Series-C (Preferred Stock, 9.0%)
Tsakos Energy Navigation (TNP-C) is a seaborne oil transportation company that offers preferred shares (series-C) with a 9.0% dividend yield. Tsakos makes more money when oil prices are low and supply is high (i.e. current market conditions), and the company has plenty of liquidity through the series-C call date. Net income has been ramping up in recent quarters, but the share price has not. You can read our full Tsakos report here.

8. Prospect Capital (BDC, 13.8%)
Prospect Capital (PSEC) is a business development company that currently offers a huge 13.8% dividend yield, and its shares are currently on sale. Specifically, the shares are trading at a discount to the company’s net asset value, and they are attractively priced at 7-times net investment income. Barring broad risks such as a sharp economic downturn and carried interest tax reform, Prospect could be an extremely valuable addition to a diversified income-focused investment portfolio. You can read our complete Prospect write-up here.

Reviews

  • Total Score 0%
User rating: 0.00% ( 0
votes )



Leave a Reply

Your email address will not be published. Required fields are marked *