2 High-Yield Dividend Stocks (and 1 ETF) for a Decade of Returns
Saturday, Oct 26, 2024 5:51 am ET
2min read Investing in high-yield dividend stocks and ETFs can provide a steady stream of income and long-term capital appreciation. By carefully selecting investments with strong fundamentals and sustainable dividend growth, investors can build a portfolio that stands the test of time. This article explores two high-yield dividend stocks and one ETF that can be held for a decade or more.
1. Realty Income (O)
Realty Income is a leading net lease REIT that owns and operates a diversified portfolio of commercial properties. With a trailing dividend yield of 5%, Realty Income has consistently increased its dividend for 29 consecutive years. The company's diversified portfolio, which spans retail and industrial assets across North America and Europe, provides geographic diversification and reduces the impact of any single tenant or property.
Realty Income's dividend growth rate has averaged around 4% over the past five years, and its payout ratio has remained relatively stable at around 80%. The company's strong financial performance and conservative dividend policy make it an attractive choice for long-term investors seeking high-yield dividends.
2. W.P. Carey (WPC)
W.P. Carey is another net lease REIT with a diversified portfolio of industrial, warehouse, and retail properties. With a trailing dividend yield of 6%, W.P. Carey has a strong track record of dividend growth, having increased its dividend for 24 consecutive years before a temporary reduction in 2024. The company's portfolio is well-diversified across industries and geographies, providing a stable and predictable income stream.
W.P. Carey's dividend growth rate has averaged around 3% over the past five years, and its payout ratio has remained relatively stable at around 75%. Although the company experienced a temporary dividend cut, its strong financial performance and commitment to dividend growth make it an attractive long-term investment.
3. Schwab U.S. Dividend Equity ETF (SCHD)
The Schwab U.S. Dividend Equity ETF is a passively managed ETF that focuses on companies with a history of dividend growth. With a trailing dividend yield of 3.5%, SCHD offers a diversified portfolio of 100 high-quality stocks that balance company quality, growth, and dividend yield. The ETF's low expense ratio of 0.06% makes it an attractive choice for investors seeking a core holding in their dividend-focused portfolio.
SCHD's dividend yield is nearly three times higher than that of the S&P 500 index, and its low expense ratio makes it an efficient choice for investors seeking a broad-based dividend ETF.
In conclusion, Realty Income, W.P. Carey, and the Schwab U.S. Dividend Equity ETF are three high-yield dividend investments that can be held for a decade or more. By carefully evaluating the dividend growth rates, payout ratios, and historical performance of these investments, investors can build a strong foundation for long-term income and capital appreciation. As always, it is essential to conduct thorough research and consult with a financial advisor before making any investment decisions.
1. Realty Income (O)
Realty Income is a leading net lease REIT that owns and operates a diversified portfolio of commercial properties. With a trailing dividend yield of 5%, Realty Income has consistently increased its dividend for 29 consecutive years. The company's diversified portfolio, which spans retail and industrial assets across North America and Europe, provides geographic diversification and reduces the impact of any single tenant or property.
Realty Income's dividend growth rate has averaged around 4% over the past five years, and its payout ratio has remained relatively stable at around 80%. The company's strong financial performance and conservative dividend policy make it an attractive choice for long-term investors seeking high-yield dividends.
2. W.P. Carey (WPC)
W.P. Carey is another net lease REIT with a diversified portfolio of industrial, warehouse, and retail properties. With a trailing dividend yield of 6%, W.P. Carey has a strong track record of dividend growth, having increased its dividend for 24 consecutive years before a temporary reduction in 2024. The company's portfolio is well-diversified across industries and geographies, providing a stable and predictable income stream.
W.P. Carey's dividend growth rate has averaged around 3% over the past five years, and its payout ratio has remained relatively stable at around 75%. Although the company experienced a temporary dividend cut, its strong financial performance and commitment to dividend growth make it an attractive long-term investment.
3. Schwab U.S. Dividend Equity ETF (SCHD)
The Schwab U.S. Dividend Equity ETF is a passively managed ETF that focuses on companies with a history of dividend growth. With a trailing dividend yield of 3.5%, SCHD offers a diversified portfolio of 100 high-quality stocks that balance company quality, growth, and dividend yield. The ETF's low expense ratio of 0.06% makes it an attractive choice for investors seeking a core holding in their dividend-focused portfolio.
SCHD's dividend yield is nearly three times higher than that of the S&P 500 index, and its low expense ratio makes it an efficient choice for investors seeking a broad-based dividend ETF.
In conclusion, Realty Income, W.P. Carey, and the Schwab U.S. Dividend Equity ETF are three high-yield dividend investments that can be held for a decade or more. By carefully evaluating the dividend growth rates, payout ratios, and historical performance of these investments, investors can build a strong foundation for long-term income and capital appreciation. As always, it is essential to conduct thorough research and consult with a financial advisor before making any investment decisions.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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