Investing in high-yielding dividend stocks has always been great way to grow your wealth.
Such stocks allow investors to profit in two ways: one, through potential appreciation of the stock price, and two, through dividend distributions. Better, many dividend paying companies also have a good amount of cash and hand, and are typically strong companies with good prospects for long-term growth.
In fact, here are seven of the top high-yielding stocks you may want to consider.
High Yielding Stock No. 1 – Lumen Technologies (LUMN) carries a dividend yield of 9.2%
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Telecommunications stock, Lumen Technologies pays a dividend yield of 9.2%.
In its most recent earnings report, the company swung from a loss to a profit. In fact, for the quarter, LUMN reported net income of $508 million for the fourth quarter 2021, compared to reported net loss of $2.289 billion for the fourth quarter 2020, which included a non-cash impairment charge of $2.642 billion. It also reported diluted EPS of $0.50 for the fourth quarter 2021, compared to $(2.12) per share for the fourth quarter 2020.
For the full-year, LUMN reported net income of $2.033 billion for the full year 2021, compared to reported Net Loss of $1.232 billion for the full year 2020, which included a non-cash impairment charge of $2.642 billion. It also posted diluted EPS of $1.91 for the full year 2021, compared to $(1.14) per share for the full year 2020.
High Yielding Stock No. 2 – Williams Companies Inc. (WMB) has a dividend yield of 5.2%
With a yield of 5.2%, WMB operates as an energy infrastructure company primarily in the United States. It operates through Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services segments.
According to analysts at Clear Bridge Investments:
“We are meaningfully overweight energy, particularly within North American energy infrastructure. Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They each deliver meaningful proportions of the overall energy produced and consumed in North America.”
“Their revenues are backed by long-term contracts with high-quality counterparties and have little direct commodity price exposure. Their growth has been driven by the increasing production of North American energy. The advent of unconventional oil and gas production (oil sand and shale) has made North America a low-cost competitor on a global basis. We expect strong North American production to be an enduring feature of global energy supply for decades to come,” they added.
High Yielding Stock No. 3 – NextEra Energy (NEE) has a dividend yield of 2.06%
Demand for utility services will always remain intact, even in the worst of times.
Look at NextEra Energy, for example.
For one, the company provides a basic need service – electricity. Two, analysts seem to like the NEE stock, with BMO Capital analysts raising their price target on NEE to $98 from $89 with an outperform rating on the stock.
Earnings have also been solid.
“NextEra Energy was successful in executing our 2021 initiatives, ending the year with excellent financial and operational results,” said Jim Robo, chairman and CEO of NextEra Energy. “We grew adjusted earnings per share by more than 10% from 2020 and delivered a total shareholder return of more than 23%, significantly outperforming the S&P 500 Utilities Index and continuing to outperform both the S&P 500 and S&P 500 Utilities Index in terms of total shareholder return on a three-, five-, 10- and 15-year basis.”
High Yielding Stock No. 4 – Iron Mountain (IRM) carries a dividend yield of 4.74%
With years of dividend increases, Iron Mountain carries a dividend yield of 4.74%.
In its most recent earnings report, the company said total reported revenues for the fourth quarter were $1.16 billion, compared with $1.06 billion in the fourth quarter of 2020, an increase of 9.4%. For the full year, net income was $452.7 million, compared with $343.1 million in 2020.
Better, analysts at Stifel just upgraded the IRM stock to a buy from hold. As noted by TheFly.com, “Stifel analyst Shlomo Rosenbaum upgraded Iron Mountain to Buy from Hold with a price target of $52, up from $49. The analyst believes the company has achieved a sustainable mid-single-digit organic growth trajectory, which he defines as 4%-6% growth.”
High Yielding Stock No. 5 – Universal Corp. (UVV) carries a dividend yield of 5.58%
Tobacco company, Universal Corp. carries a yield of 5.29% at the moment.
In recent months, the Board of Directors declared a quarterly dividend of seventy-eight cents ($0.78) per share on the common shares of the Company, payable May 2, 2022, to common shareholders of record at the close of business on April 11, 2022.
In addition, UVV’s net income for the nine months ended December 31, 2021, was $60.8 million, or $2.44 per diluted share, compared with $48.0 million, or $1.94 per diluted share, for the nine months ended December 31, 2020.
High Yielding Stock No. 6 – Kinder Morgan (KMI) has a dividend yield of 5.96%
High dividend stocks like Kinder Morgan are a great way to offset inflation.
After all, Kinder Morgan is one of the largest infrastructure companies in North America. It owns and controls oil and gas pipelines and terminals. With a dividend yield of 6.24%, the company recently said “it was budgeting a 3% dividend boost this year,” according to Barron’s.
The company also continues to be one of the most stable, with enough cash cover its dividend.
Also, much like the rest of the energy sector, it’s starting to pivot toward lower carbon energy sources, which could provide it with solid growth opportunities.
High Yielding Stock No. 7 – WP Carey Inc. (WPC) carries a dividend yield of 5.3%
WPC is a net lease real estate investment trust (REIT) that buys properties directly from companies, and then leases them back to an oftentimes reliable tenant.
It’s also called a lease-back. Or, where “a company sells its real estate to an investor like W. P. Carey for cash and simultaneously enters into a long-term lease. In doing so, the company extracts 100% of the property’s value and converts an otherwise illiquid asset into working capital to reinvest in its business or pay down debt, while maintaining operational control,” as noted by the company.
What’s interesting about WP Carey is nearly all of its rental agreements include contractual rent increases for inflation, according to BNK Invest. In fact, about 60% of the agreements are tied to the consumer price index. Well diversified with industrial, warehouse, office, retail, and self-storage, the REIT also pays a dividend yield of 5.3%.