3 Top Dividend Stocks With Yields Over 5%
With the S&P 500 Index yielding less than 2%, it can be hard to find stocks offering generous dividends. But if you are willing to think a little outside the box you can find yields of 5% and more from companies that don't get as much investor attention as they deserve. For example, real estate investment trust (REIT) W.P. Carey (NYSE: WPC), integrated energy giant Total (NYSE: TOT), and midstream mammoth Enterprise Products Partners (NYSE: EPD) are big dividend payers that investors seem to have forgotten about. Here's a quick rundown on each.
W.P. Carey is a net-lease real estate investment trust, which means it owns single-tenant properties, and the tenants pay most of the operating costs of the properties they occupy. It's a fairly low-risk approach in the sector. However, W.P. Carey takes things a step further by diversifying its portfolio across the industrial (24% of rents), warehouse (23%), office (23), retail (17%), and self storage (5%) sectors, with a fairly large "other" category making up the rest. In addition, it generates around 37% of its rents from outside the United States (largely Europe). Diversification has been just as good for this REIT's portfolio as it is for yours: Its rent collection rates have remained in the high-90% range throughout the coronavirus pandemic, even as some peers saw their collections fall into the 50% space.
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Source Fool.com
