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Want $300 in Super-Safe Dividend Income in 2025? Invest $3,730 Into the Following 3 Ultra-High-Yield Stocks.

Julian WestMonday, Dec 30, 2024 5:31 am ET
2min read


Are you looking to generate a substantial and reliable income stream in 2025? Look no further than these three ultra-high-yield stocks, which offer an average yield of 8.05% and require an initial investment of just $3,730, split equally among them. By investing in Realty Income, Enterprise Products Partners, and PennantPark Floating Rate Capital, you can secure a monthly income of $300 or more.

1. Realty Income (NYSE: O) - Yield: 6.02%
Realty Income, also known as "The Monthly Dividend Company," has been a reliable source of income for investors since its founding in 1969. With a portfolio of over 15,450 properties across the U.S., U.K., and Europe, Realty Income focuses on retail and industrial tenants, providing a stable and diversified income stream. The company's occupancy rate has remained consistently high, averaging 98.2% over the past 24 years, and its dividend has increased for 29 consecutive years, qualifying it as a member of the S&P 500 Dividend Aristocrats index.

Realty Income's diversified portfolio and strong occupancy rates ensure consistent cash flows, which support its robust payouts. The company's multiple to forecast cash flow in 2025 represents a 29% discount to its average price-to-cash-flow ratio over the trailing-five-year period, indicating that it's still a bargain. Realty Income's undervaluation allows it to reinvest in growth opportunities while maintaining its dividend payouts.



2. Enterprise Products Partners (NYSE: EPD) - Yield: 6.76%
Enterprise Products Partners is a midstream energy company that operates over 50,000 miles of transmission pipelines and has north of 300 million barrels of liquids storage capacity. The company's business model is built for cash-flow consistency, with a majority of its contracts being long term, fixed rate, and having built-in escalations to mitigate the impact of inflation. This fixed-rate quality allows Enterprise Products Partners to accurately forecast cash flows, enabling it to pay a hearty distribution and invest for the future.

Enterprise Products Partners has invested close to $7 billion in major capital projects, many of which are aimed at furthering its exposure to natural gas liquids. These projects coming online, coupled with lower forecast capital expenditures in 2026, should result in a meaningful uptick in cash flow from operations. This increased cash flow supports the company's ability to pay and raise its base annual distribution.

3. PennantPark Floating Rate Capital (NYSE: PFLT) - Yield: 11.36%
PennantPark Floating Rate Capital is a business development company (BDC) that invests primarily in the debt or equity of middle-market businesses. The company's portfolio consists predominantly of loans, which typically sport well-above-average yields. PennantPark's variable-rate loans have benefited from the Fed's aggressive rate-hiking cycle, with the weighted average yield on debt investments increasing from 7.4% in September 2021 to as high as 12.6% in 2023. Even with the nation's central bank now undertaking a rate-easing cycle, the slow pace of cuts should afford PennantPark plenty of lending opportunity at higher yields, supporting its high dividend payout.

PennantPark's average investment size of $12.6 million and the fact that all but $2.7 million of its loan portfolio is in first-lien secured notes help mitigate risk to the company's principal. This strategy enables PennantPark to maintain a high dividend yield, currently around 11.4%, while mitigating interest rate risk.



In conclusion, investing in Realty Income, Enterprise Products Partners, and PennantPark Floating Rate Capital offers a unique opportunity to generate a substantial and reliable income stream in 2025. These three ultra-high-yield stocks provide an average yield of 8.05% and require an initial investment of just $3,730, split equally among them. By diversifying your portfolio with these companies, you can secure a monthly income of $300 or more, while also benefiting from their strong financial positions and consistent dividend histories. Don't miss out on this chance to build a secure and lucrative income stream – invest in these three ultra-high-yield stocks today!
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.