5 Top Dividend Stocks Yielding Up to 21.2%
August 30, 2018
Where to Find Yields Today
Today’s low (virtually zero-percent) interest rates have hit savers hard. Savings accounts pay out next to nothing. Bonds yield only two or three percent.
It has made saving up for retirement a big challenge. At one time, a six- or seven-figure nest egg could throw off plenty of cash flow. Today, even a sizeable retirement account will only earn enough money in interest to buy a cup of coffee each week.
Thankfully, there are answers: stocks.
While the stock market comes with more ups and downs, equities do represent a great source of safe, high yields. And if you’re willing to do some digging, you can lock in a reliable stream of income far larger than any fixed-income investment.
In the table below, I’ve highlighted a few of my favorite dividend stocks. To be honest, they all come with a higher degree of risk, at least compared to the bluest of blue-chip dividend stocks. That said, all five pay out some of the highest yields around and would make a nice supplement to any retirement income stream.
Let’s take a look at the list:
|
Company |
Market Cap |
Yield |
|
SandRidge Permian Trust |
$133.9 Million |
21.2% |
|
BP Prudhoe Bay Royalty Trust |
$627.0 Million |
19.2% |
|
CBL & Associates Properties, Inc. |
$759.7 Million |
17.9% |
|
Green Plains Partners LP |
$482.2 Million |
12.5% |
|
Dynagas LNG Partners LP |
$457.2 Million |
11.3% |
(Source: Google Finance, last accessed August 28, 2018)
5 Dividend Stocks with High Yields
And here are a few words about these companies.
SandRidge Permian Trust (NYSE:PER) and BP Prudhoe Bay Royalty Trust (NYSE:BPT) are pretty straightforward to wrap your head around. These firms own a number of oil and gas wells, but rather than plowing profits into expanding their operations, they pay out all of their earnings to shareholders. And because they pay no taxes on corporate profits, these trusts pay out some of the highest yields around.
Of course, this model has some downsides. Distributions can swing wildly with the ups and downs in energy prices. Plus these wells, and by extension, the distributions, will eventually run dry. But for those looking for a large, upfront yield, these two firms represent attractive opportunities.
CBL & Associates Properties, Inc. (NYSE:CBL) operates a portfolio of shopping malls anchored by struggling department stores. Over the past few years, these properties have struggled with falling rental income, increasing vacancy rates, and large debt loads.
Executives, however, may have put a stop to the bleeding, having cut costs, paid off debt, and renovated existing properties. By turning malls into entertainment centers instead of pure shopping destinations, the partnership has boosted foot traffic and sales. If management can turn this business around, investors could lock in a tidy yield.
Green Plains Partners LP (NASDAQ:GPP) wants to do a lot of good, both for the environment and investors. The partnership stores and transports plant-based ethanol fuels. By replacing gasoline, the business aims to cut greenhouse emissions while reducing the nation’s reliance on foreign energy sources. It’s a lucrative business, too; Green Plains’ business throws off an enormous amount of cash to shareholders, which has resulted in a yield of nearly 13%.
Over the next few years, few industries will make as much money as liquefied natural gas (LNG). New technologies have unlocked vast supplies of energy stateside, sending prices plunging. But overseas, rates remain steady due to growing demand and limited inventories. Companies want to buy gas cheap here and ship it overseas for a big profit.
Dynagas LNG Partners LP (NYSE:DNLG) owns the ships that carry this natural gas around the world. The partnership earns a small fee on every cubic foot of LNG shipped. And with the number of shipments growing, Dynagas’s profits and distribution could surge in the coming years.
