When investing in a stock that has a yield of 5%, or more you aren’t expecting a lot in the way of capital appreciation. Of course, you want to see that stock rise, but most of the highest yielding stocks are low beta stocks and aren’t going to turn any heads. We did a little research and found that a few stocks that have absolutely crushed it this year, and are still standing strong with at least a 5% dividend yield.
A few of the top performing dividend paying stocks are MLPs. Before buying an MLP make sure you understand the tax implications. Many of these high return stocks rank high on our list of the top dividend stocks. Each of the following stocks has a year to date return over 20% and a dividend yield of 5% or more.
Terra Nitrogen Company, L.P. (NYSE:TNH)
Terra Nitrogen is a limited partnership that produces fertilizer products in its facility in Oklahoma. Terra (which means land or earth in Latin) has two products, ammonia and nitrate solutions. The company has seen a lot of growth this year due to rising crop prices.
TNH has a dividend yield of 7.94% and a year to date return of 61%. Its 5 year dividend growth rate is 97.6%
Cedar Fair, L.P. (NYSE:FUN)
If you bought Cedar Fair at the beginning of the year, you've been having a lot of FUN. Cedar Fair is a limited partnership that owns and operates 11 amusement parks and 7 water parks. FUN has a high dividend yield of 5.06% and a year to date return of 44%. Its dividend payments are not very steady, so you may want to look eslewhere if consistent dividend payments are important to you.
Atlas Pipeline Partners, L.P. (NYSE:APL)
Atlas Pipeline Partners is a limited partnership. The Atlas Pipeline provides natural gas gathering and treatment in the mid-continent regions of the U.S. APL has a dividend yield of 5.2% and a year to date return of 42%. Its dividend growth rate is 56%.
Medallion Financial Corp (TAXI)
Medallion Financial Corp is owned by Medallion Bank. This financial company originates and services loans for taxi cabs and commercial businesses. It also issues loans for recreational vehicles such as boats, motorcycles and trailers.
TAXI has a dividend yield of 5.6% and a year to date return of 42%. It has been paying dividends since 1996.
Telecom Corp of New Zealand (ADR) (NZT)
The Telecom Corporation of New Zealand supplies telecom and communication services in New Zealand and Australia. Its products include telephone, mobile, data and broadband services. The company also has an IT business that offers cloud computing and managed IT services.
NZT has a dividend yield of 7.96% and a year to date return of 22%. It has a 5 year dividend growth rate of 14.6%.
MI Developments Inc (MIM)
MI Developments buys, leases and manages properties for its industrial rental property portfolio. The company purchases land with the intention of developing residential projects. MIM is also involved in racing and gaming operations. MIM has a dividend yield of 6.07% and a year to date return of 21%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.