3 High-Dividend-Paying Stocks Yielding Up to 12.8%
October 26, 2016
Three High-Dividend-Paying Stocks in the Real Estate Sector
Income investors are always looking for one thing: high-dividend-paying stocks. One sector that has always returned money back to shareholders is the real estate sector.
There are many ways to make money in the real estate sector, such as financing, rental, and/or service companies. The main reason that real estate companies are high-dividend-paying stocks is that they tend to pay out more than 80% of their earnings.
I have made a list of three high-dividend-paying stocks that are beneficiaries of the returns from the real estate market.
Medical Properties Trust, Inc.
Medical Properties Trust, Inc. (NYSE:MPW) is a unique company in the real estate sector, focused on investing in and owning health care facilities.
MPW clients are medical professionals such as doctors, dentists, and medical specialists. Due to the steady and reliable cash flow, shareholders get a 6.4% dividend yield, which is $0.23 on a quarterly basis.
Medical Properties Trust is the largest health care real estate company in the sector, with 202 properties in its portfolio. The company’s market cap is approximately $3.4 billion, with the majority of the earnings coming from the U.S., though the company also operates in Italy, Germany, and Spain.
American Hotel Income Properties REIT LP
American Hotel Income Properties REIT LP (OTCMKTS:AHOTF) owns and operates hotels in the U.S. The big twist is that the company’s main focus is to accommodate railway employees, with more than half of the company’s portfolio of hotels located along U.S. railway lines.
The newest additions to American Hotel Income Properties’ portfolio are branded hotels in Tennessee, Texas, and Florida from Marriott International Inc (NASDAQ:MAR) and Hilton Worldwide Holdings Inc (NYSE:HLT). These were purchased as part of an effort to diversify away from just railway hotels by also owning and operating hotels in traditional locations. (Source: “American Hotel Income Properties REIT LP Announces Acquisition Of Four Branded, Select-Service Hotels In Florida And Tennessee For US$47.0 Million,” American Hotel Income Properties REIT LP, September 30, 2016.)
The company pays its dividend on a monthly basis, with a yield of 7.95%, and pays $0.648 per share on an annual basis.
AG Mortgage Investment Trust Inc
AG Mortgage Investment Trust Inc (NYSE:MITT) stock is a high-dividend-paying stock that invests and acquires residential and commercial mortgage assets, as well as other financial assets. The majority of its earnings come from mortgage-backed securities. The company has been around for 28 years.
Certain parts of AG Mortgage’s portfolio have a guarantee on principal and interest by the U.S. government, which reduces overall market exposure. As of December 31, 2015, assets under management were approximately $25.0 billion.
AG Mortgage Investment Trust has experience managing risk in up and down markets. The company’s goal is generating absolute returns with less volatility than market risk. (Source: “Corporate Profile,” AG Mortgage Investment Trust Inc, last accessed October 25, 2016.)
MITT stockholders receive a 12.84% dividend yield, which would be $1.88 on an annual basis. The beta for MITT stock is 0.52, or is half of that of the market. Day-to-day, there likely won’t be a lot of volatility.
