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Raymond James Has 5 Passive Income Dividend Stocks to Buy With Yields Up to 14%

Lee Jackson

Published: May 24, 2024 8:59 am

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• Dividend stocks are one of the best ideas to generate passive income.
• Raymond James is positive on Equity Income ideas.
• Access 2 legendary, high-yield dividend stocks Wall Street loves.

Dividend stocks are a popular choice among investors for several reasons. They provide a steady income stream and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, includes interest, capital gains, dividends, and distributions realized over time.

In other words, it’s the sum of all the returns an investor receives from an investment, making dividend stocks an attractive option for those seeking a reliable and potentially lucrative investment.

With all the major indices hitting all-time highs, it makes sense to consider moving from higher-volatility tech stocks and AI plays to dividend stocks. Dividend stocks can provide investors with a degree of safety and a stream of passive income.

 Our investment strategy is backed by thorough research. We meticulously screened the recent Raymond James Equity Income research report for dividend stocks. As a result, we identified six stocks that not only offer substantial dividends but are also priced to potentially deliver significant returns as investors shift their focus back to dividend ideas. Those seeking higher yields may consider four absolutely best stocks yielding over 10%.

Raymond James has this to say about their dividend selections:

The updated Equity Income list contains 51 securities rated as Strong Buy or Outperform by Raymond James Equity Research analysts. The list is segmented by traditional C corps (plus one partnership) and REITs. The median yield on the 42 C corps is noticeably above that of the S&P 500. Yields on the REITs and the lone partnership on the list are materially higher because they pay out the vast majority of their income.

Why do we cover dividend stocks?

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Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

AT&T

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The legacy telecommunications company has been going through a lengthy restructuring, lowering the dividend, which still checks in at 6.42%. AT&T Inc. (NYSE: T) provides worldwide telecommunications, media, and technology services.

Its Communications segment offers wireless voice and data communications services.

AT&T  sells through its company-owned stores, agents, and third-party retail stores:

• Handsets
• Wireless data cards
• Wireless computing devices
• Carrying cases
• Hands-free devices 

AT&T also provides:

• Data
• Voice
• Security
• Cloud solutions
• Outsourcing
• Managed and professional services
• Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers

In addition, this segment offers broadband fiber and legacy telephony voice communication services to residential customers.

It markets its communications services and products under :

• AT&T
• Cricket
• AT&T PREPAID
• AT&T Fiber 

The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.

Columbia Banking System

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While off-the-radar, this stock pays a rich 7% dividend and has strong total return potential. Columbia Banking System Inc. (NASDAQ: COLB) operates as the holding company of Umpqua Bank, which provides banking, private banking, mortgage, and other financial services in the United States.

The company offers deposit products, including:

• Business, non-interest-bearing checking
• Interest-bearing checking and savings
• Money market
• Certificate of deposit accounts
• Insured cash sweep and other investment sweep solutions

It also provides commercial lending products, such as:

• Commercial lines of credit and term loans
• Accounts receivable and inventory financing
• International trade finance
• Commercial property loans
• Multifamily loans
• Equipment loans
• Commercial equipment leases
• Real estate construction loans
• Permanent financing, and small business administration program financing, as well as capital markets

In addition, the company offers:

• Wealth management comprising financial planning, investment, trust, and insurance
• Treasury management, which includes digital and mobile banking solutions
• ACH, wires, positive pay, remote deposit capture, integrated payments
• Integrated receivables, lockbox, cash vault, real-time payments, commercial card, and foreign exchange and international banking related products
• Merchant services; and brokerage services
• Residential real estate loans and consumer loans

Gaming and Leisure Properties

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While also off the radar, this company offers investors a rich 6.44% dividend and total solid return potential. Gaming and Leisure Properties Inc. (NASDAQ: GLPI) is engaged in the business of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements.

In a triple new lease arrangement, the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or concerning the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties.

In February of this year, Gaming and Leisure Properties acquired the real estate assets of Tioga Downs Casino Resort for $175 million and entered into a 30-year master lease agreement. Moreover, revenues for the first quarter were up 5.8% year-over-year.

Mach Natural Resources

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This 2023 IPO is trading below the initial price and will pay a reported gigantic 14% dividend based on estimates for the rest of the year. Mach Natural Resources L.P. (NYSE: MNR) is an independent upstream oil and gas company focused on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, southern Kansas, and the Texas panhandle.

The analysts at Raymond James noted that Mach is led by Tom Ward, cofounder of Chesapeake Energy. Mach is another entrant into the E&P MLP space. It is a pure-play operator in the Anadarko Basin, leveraging its strong position (1 million net acres) to become the primary consolidator in the region.

Mach’s midstream position and lower base decline (~20%) allow the company to target a lower reinvestment rate (~30%) relative to the overall industry.

VICI Properties

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This is the top pick across Wall Street in the net lease group and is ideal for more conservative investors looking for gaming exposure and a solid 5.48% dividend. VICI Properties Inc. (NYSE: VICI) is an S&P 500 experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas, three of the most iconic entertainment facilities on the Las Vegas Strip.

VICI Properties owns 93 experiential assets across a geographically diverse portfolio consisting of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio comprises approximately 127 million square feet and features approximately 60,300 hotel rooms and over 500 restaurants, bars, nightclubs, and sportsbooks.

Its properties are occupied by industry-leading gaming, leisure, and hospitality operators under long-term, triple-net lease agreements. VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including:

• Bowlero
• Cabot
• Canyon Ranch
• Chelsea Piers
• Great Wolf Resorts
• Homefield
• Kalahari Resorts

VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.

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