An adage among real estate investors says, “You can’t make or create any more land,” while you can always build higher, you still need the land. Real estate is one of the best assets most investors are underweighted on. While those who own a home are technically real estate investors, home ownership doesn’t produce any income unless you have rental homes, which can be very capital-intensive, not to mention time-consuming.
When inflation is part of the economic landscape, real estate, gold, and commodities stocks are often the best companies to own. While inflation has cooled from a red-hot 9.1% in June of 2022, the current inflation rate of 3.4% came in above estimates for December, and the Core consumer price index is DOUBLE the Federal Reserve target.
We screened our 24/7 Wall St. dividend inflation stock universe and found six stocks that pay big dividends and can help investors navigate the continuing inflation currents.
Energy Transfer
Source: onurdongel / E+ via Getty Images
The top master limited partnership is a safe way for investors looking for energy exposure and income, as the company pays a massive 9.40% distribution. Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins.
The company is a publicly traded limited partnership with core operations that include:
- Complementary natural gas midstream
- Intrastate and interstate transportation and storage assets
- Crude oil, natural gas liquids (NGL), and refined product transportation and terminalling assets
- NGL fractionation and various acquisition and marketing assets
Energy Transfer owns and operates more than 114,000 miles of pipelines and related assets in all significant U.S.-producing regions and markets across 41 states, further solidifying its leadership position in the midstream sector.
Through its ownership of Energy Transfer Operating, L.P., the company also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco LP (NYSE: SUN), and the public partner interests and 39.7 million standard units of USA Compression Partners, LP (NYSE: USAC).
EPR Properties
Source: RandyAndy101 / iStock Editorial via Getty Images
If you want fun in 2024, this top company may own a chunk of the amusement park or property you travel to and pay a hefty 6.90% dividend. EPR Properties Inc. (NYSE: EPR) is a leading experiential net lease real estate investment trust (REIT) specializing in select enduring experiential properties in the real estate industry.
The company focuses on real estate venues that create value by facilitating out-of-home leisure and recreation experiences where consumers spend their discretionary time and money, with nearly $5.7 billion (after depreciation) in total investments across 44 states.
EPR Properties adheres to rigorous underwriting and investing criteria centered on key industry, property, and tenant-level cash flow standards, and they believe a very focused approach provides a competitive advantage and the potential for stable and attractive returns.
Gladstone Commercial
Source: buzbuzzer / iStock via Getty Images
This company was hit hard as interest rates were charged higher last year, and it is offering the best entry point in some time and a massive 8.98% dividend. Gladstone Commercial Corporation (NASDAQ: GOOD) is focused on acquiring, owning, and operating net leased industrial and office properties across the United States.
Gladstone owns a diversified portfolio of 121 office and industrial properties in 27 states and leased to 106 tenants. The company has grown its portfolio consistently, disciplined at 18% per year since the IPO in 2003.
They match long-term leased properties with long-term debt to lock in the spread to create a durable, stable cash flow stream to fund monthly distributions to shareholders. Current occupancy stands at 96.5%, and occupancy has never dipped below 95.0% since the company’s IPO in 2003.
Most importantly for investors, Gladstone has a track record of success, exhibited by a history of solid distribution yields, consistent occupancy greater than 95.0%, and 10+ years of paying continuous monthly cash distributions.
Newmont Corporation
Source: assistantua / Getty Images
This is one of the largest mining companies, yields a solid 4.22%, and is a timely buy for more conservative accounts. Newmont Corporation (NYSE: NEM) is a gold producer.
It operates through the following geographical segments:
- North America
- South America
- Nevada
- Australia
- Africa
The North American segment consists primarily of:
- Carlin
- Phoenix
- Twin creeks and Long Canyon in the state of Nevada
- Cripple Creek and Victor in the state of Colorado in the United States
The South American segment consists primarily of:
- Yanacocha in Peru
- Merian in Suriname
The Australia segment consists mainly of Australia’s Boddington, Tanami, and Kalgoorlie
The Africa segment consists primarily of Ahafo and Akyem in Ghana
Simon Property Group
Source: JohnnyGreig / E+ via Getty Images
This leading company has rallied off the 2023 lows, offering patient investors a hefty 5.25% dividend. Simon Property Group Inc. (NYSE: SPG) invests in the global real estate markets.
The company invests, owns, manages, and develops properties.
Simon Property Group primarily invests in:
- Regional malls
- Premium outlets
- Mills
- Community/lifestyle centers
Through its subsidiary partnership, it owns or has an interest in about 230 properties in the US and Asia.
The company also has a 28.9% interest in Klepierre, a European REIT with over 260 shopping centers in 13 countries.
Starwood Property Trust
Source: bauhaus1000 / Getty Images
This is a high-yielding company run by real estate legend Barry Sternlicht that offers big-time total return potential and a 9.09% dividend. Starwood Property Trust, Inc. (NYSE: STWD) operates as a real estate investment trust (REIT) in the United States, Europe, and Australia.
It operates through four segments:
- Commercial and Residential Lending
- Infrastructure Lending
- Property
- Investing and Servicing segments
The Commercial and Residential Lending segment:
- Originates, acquires, finances, and manages commercial first mortgages
- Non-agency residential mortgages
- Subordinated mortgages
- Mezzanine loans
- Preferred Equity
- Commercial mortgage-backed securities (CMBS)
- Residential mortgage-backed securities
The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments.
The Property segment primarily develops and manages equity interests in stabilized commercial real estate properties, such as multifamily properties and commercial properties subject to net leases, that are held for investment.
The Investing and Servicing segment:
- Manages and works out problem assets
- Acquires and contains unrated, investment grade, and non-investment grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions
- Originates conduit loans to sell these loans into securitization transactions and acquire commercial real estate assets, including properties from CMBS trusts.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
