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5 'Strong Buy' Dividend Stocks Yielding 4% To 6.8%

May 02, 2022 8:00 AM ETCTRE, MPW, NEE, NEP, T, VNQ, VZ, WSR37 Comments


  • The S&P 500 and Nasdaq Index have fallen decisively through their 200-day moving averages amid high economic turmoil and uncertainty.
  • In the current decade, stock market appreciation is unlikely to repeat the massive rally enjoyed during the 2010s.
  • When stock price appreciation is low, dividends tend to make up a larger percentage of total returns.
  • I present five of my favorite dividend stock opportunities right now.
  • Looking for a helping hand in the market? Members of High Yield Landlord get exclusive ideas and guidance to navigate any climate. Learn More »

Coin stacks with letter dice - Yield

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As sure as Spring turns to Summer, it was a foregone conclusion that the vigorous economic rebound and raging bull market from last year would come to an end, eventually.

As it so happens, this shift

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This article was written by

Austin Rogers profile picture

Austin Rogers is a REIT specialist with a professional background in commercial real estate. He writes about high-quality dividend growth stocks with the goal of generating the safest growing passive income stream possible. Since his ideal holding period is "lifelong," his focus is on portfolio income growth rather than total returns.

Austin is a contributing author for the investing group High Yield Landlord, one of the largest real estate investment communities on Seeking Alpha, with thousands of members. It offers exclusive research on the global REIT sector, multiple real money portfolios, an active chat room, and direct access to the analysts. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of T, CTRE, MPW, NEP, VZ, WSR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (37)

aterosin profile picture
I'm confused and should probably read this again. NEE or NEP? Thanks, Gerry in Oregon
Austin Rogers profile picture
@aterosin I'm pitching NEP, but NEP's growth rate is closely tied to that of its sponsor / external manager, NEE, which also performs all development.
If you want high dividends, I suggest you look at SBSW. Also watch GOGL, however with GOGL wait for a dip before buying. NYCB is another high dividend payer.

Just looked up NEP on SA and it has a red flag stating that the stock is rated to perform badley. Why would you recommend it investors?
@wildpatriot Contrary opinions in the market are the norm. Doing one's own research can be important rather than relying on any single opinion from an exterior source.
Austin Rogers profile picture
@wildpatriot Seeking Alpha's warning red flags are determined by some sort of algorithm, likely based on poor recent price performance. I don't rely on those at all. Just look at the fundamentals and the operational performance of the company and let the stock price sort itself out.
OHI debt-laden? OHI has much stronger balance sheet and lower debt than MPW and many peers. Thats also reflected by junk rating of MPW and investment grade rating for OHI.
Austin Rogers profile picture
@Peretepradlo Debt has come down for OHI in recent years, but the REIT still has higher debt and lower fixed charge coverage than CTRE by a significant margin.
Many are looking for good after tax total returns. That means qualified dividends and not REITs, and stock price appreciation together with decent dividends.
hafen profile picture
Good journalistic skills, but not acceptable financial advice. I’m familiar with each of your choices, and, while they might be an acceptable “fit” for your portfolio, in my view, they aren’t acceptable candidates to suggest to others. They lack convincing sustainability.
Austin Rogers profile picture
@hafen To each his/her own.
ResilientRN profile picture
HOM.U / BSRTF & REI.U/ RIOCF got clobbered today and should be a good buys as well.
Austin Rogers profile picture
@ResilientRN Yes, I noticed that all of the residential REITs got clobbered today. It presents some good buying opportunities.
Ol' Hickory profile picture
High yield is good, dividend quality is better. These recommendations don’t pass muster on the latter.
@Ol’ Hickory So MPW which didnt cut in once a lifetime event of pandemic is not a quality dividend? Simply safe dividend recently upgraded MPW to score 70 and a safe rating. It means low risk of a cut and reliable dividend.
@Peretepradlo But they did cut in 2008-09,so maybe my lifetime is too long.
CTRE tenants are operating in a very difficult environment, especially with regard to labor costs and availability. Jettisoning the weakest 10% of the portfolio no doubt will result in a non-cash impairment charge. No thanks.
Austin Rogers profile picture
@alexalekhine Paradoxically, cap rates even for senior housing and skilled nursing properties have declined, so if CTRE decides to sell these properties rather than re-tenant or repurpose them, the impairment charge likely will be minimal.
That does not compute. Sr. Housing, sure.
But SNF operators as a group are in "deep doo doo." I would peg cap rates in the 9% range. Nice if you are a buyer, not so great if you are a seller.
You should try taking a listen to the OHI conference call about how SNF operators are doing. Its not well. I wouldn't even want to own the bonds of CTRE, much less the equity here.
Austin Rogers profile picture
@alexalekhine You are correct that SNF operators are struggling mightily right now. Even so, at least in 2021, the sheer amount of capital chasing real estate deals translated into compressing cap rates even for SNF properties. Now, cap rates didn't compress much, but one of the things CTRE's management complained about one a few of their calls was the inability to source attractively priced deals because of the cap rates they were seeing.
I believe NEP issues a K-1 at tax time.
Austin Rogers profile picture
@wildpatriot Actually, NEP issues the normal 1099-Div form, not a K-1. The "Partners" part of the name would seem to suggest otherwise, but unlike BEP or MLPs, NEP is organized in a way that avoids issuing a K-1.
Hi Austin, thanks for the article. I just started following you. I like some of these ideas. Most of my investing is through my IRA, so I tend to avoid limited partnerships. I follow Jussi, and you added a reply which was helpful, so that's where I got your name. Thank you.
Austin Rogers profile picture
@Sam_12 Happy to be of service!
Sure, invest right before the fed induced bear market and impending recession. All just to make a few dollars in dividends while your capital drops 30-40%.
Austin Rogers profile picture
@Randol33 It's impossible for me to time the bottom. I just buy stocks when they are a good value. Good value does not mean that they cannot or will not become an even better value.
Flyer24 profile picture
@Austin Rogers Well said.
@Randol33 So what do you suggest? Sell everything and wait for the bottom which nobody know when it will be? Look at Buffett. He made a lot of money in years and never sold everything in his portfolio before a recession. He knows that all drops are temporary and will recover in few years if fundamentals remain good.
Vz @ 5+% does it for me, T seems to always go off course and buy something at high $$$ price
Austin Rogers profile picture
@aimepic VZ is the much bigger position for me because I view it as safer, but T is too cheaply valued and high-yielding to pass up now that it is a much simpler and more focused telecom business.
@aimepic There is a rumour that Buffett sold entire Verizon stake. Which is not a surprise as its guaranteed to lost purchasing power with 2% grower in a double digit inflation world.
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