In the ever-changing landscape of the stock market, finding reliable sources of income can be a daunting task. However, for those with a keen
for value and a long-term investment horizon, high-yield dividend stocks offer a lifeline in volatile markets. Today, we're going to dive into two elite ultra-high-yield dividend stocks that you can buy with just $200 and never look back. These stocks not only offer impressive yields but also have a proven track record of increasing their payouts year after year.
(EPD)
Enterprise Products Partners is a master limited partnership (MLP) that operates an integrated portfolio of critical energy midstream infrastructure. This includes pipelines, processing plants, storage terminals, and export facilities. The company's diversified portfolio generates steady earnings backed by long-term, fee-based contracts and government-regulated rate structures. As of March 30, 2025, Enterprise Products Partners' distribution yields an impressive 6.3%. This means that for every $100 invested, you would generate $6.30 of annual passive income. But the real magic lies in the company's ability to increase its payouts consistently. Enterprise Products Partners has increased its payouts for 26 straight years, making it one of the longest dividend growth streaks in the energy sector.
The stability of Enterprise Products Partners' cash flows is a testament to its business model. The company's infrastructure is supported by long-term contracts, which provide a stable revenue stream. Additionally, some of its operations are subject to government-regulated rate structures, further stabilizing its earnings. This stability is crucial for maintaining reliable cash flows, which in turn supports the company's ability to continue increasing its distributions.
Enterprise Products Partners is also actively involved in organic expansion projects. The company has $7.6 billion of major projects under construction that should come online and contribute to its cash flow over the next few years. These projects are designed to fuel longer-term growth and enhance the company's cash flow. The company also makes strategic acquisitions to boost its cash flow. For instance, it bought Pinon Midstream for $950 million last year, which will enhance its long-term growth prospects. These acquisitions are carefully selected to be accretive, meaning they add value to the company's overall financial performance.
The company's elite balance sheet and the highest credit rating in the midstream sector give it tremendous financial flexibility to continue making acquisitions and investing in expansion projects. This financial strength, combined with its stable cash flows, positions Enterprise Products Partners as a reliable source of income for investors.
NNN REIT (NNN)
NNN REIT is a real estate investment trust (REIT) that focuses solely on investing in single-tenant retail properties. The REIT's portfolio produces stable cash flow, thanks to its focus on net lease agreements. Net leases provide steady income to the landlord because they make the tenant responsible for nearly all of their property's operating expenses, including routine maintenance, real estate taxes, and building insurance. As of March 30, 2025, NNN REIT's dividend yields 5.5%, producing $5.50 of income for shareholders annually for every $100 invested.
NNN REIT has a long track record of increasing its payouts. The REIT brought its streak of payout hikes to 35 straight years, making it one of the few publicly traded companies to achieve this milestone. The REIT's conservative payout policy, which pays out less than 70% of its core funds from operations (FFO), enables it to retain a meaningful amount of cash to invest in additional income-generating retail properties. The REIT also has a conservative balance sheet, giving it more financial flexibility to fund new investments.
NNN REIT's growing portfolio should enable it to continue increasing its high-yielding payout. The REIT typically partners with retailers to help them expand their footprints. It will steadily buy properties from their existing tenants in sale-leaseback transactions. This gives the chains additional capital to open new stores, which in turn provides the REIT with additional investment opportunities. More than 70% of NNN REIT's investment volume since 2007 has come from companies it already had an established relationship with. This strategy not only provides a steady stream of income but also positions the REIT for future growth.
Why These Stocks Are Great for Income Investors
Both Enterprise Products Partners and NNN REIT offer impressive yields that are several times higher than the S&P 500's average dividend yield of 1.3%. This makes them attractive options for investors seeking stable income. Additionally, both companies have a long track record of increasing their payouts, providing investors with a reliable and growing income stream. This consistency in dividend growth is particularly valuable in volatile markets, where other sources of income may be less reliable.
Conclusion
In conclusion, if you have $200 to invest and are looking for reliable sources of income, Enterprise Products Partners and NNN REIT are two elite ultra-high-yield dividend stocks that you should consider. Both companies offer impressive yields and have a proven track record of increasing their payouts year after year. Their stable cash flows and conservative payout policies make them reliable sources of income for investors. So, go ahead and invest in these stocks, and never look back. Your retirement portfolio will thank you.
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