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5 Dividend Stocks Yielding 8% and More Are the Passive Income Champions
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24/7 Wall St. Insights
Investors love dividend stocks because they provide dependable passive income streams and a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation.
Most dividend investors aim to secure a reliable passive income stream from quality dividend stocks. Passive income is a consistent unearned income that doesn’t require active traditional work. It is a financial goal that can be achieved through various means, including investments, real estate, or side hustles.
We decided to screen our passive income research database, looking for quality stocks that yield at least 8% and offer investors solid growth potential, and are passive income champions. Six companies are perfect ideas for those seeking to bolster their income and set the stage for some potential capital gains. All are rated Buy at major Wall Street firms. Don’t forget to grab this new report right now.
This high-yielding business development company (BDC) pays a massive 9.26% dividend. Ares Capital Corp. (NASDAQ: ARCC) specializes in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle-market companies.
It also makes growth capital and general refinancing. It prefers to invest in companies engaged in basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors.
The fund will also consider investments in industries such as:
The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million
The fund invests through:
The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically finds the purchase of stressed and discounted debt positions.
This European giant continues to print money, has a vast product line, and pays a massive 8.26% dividend. British American Tobacco PLC (NYSE: BTI) offers:
The company offers its products under these popular brands:
This top master limited partnership is a safe way for investors looking for energy exposure and income, as the company pays a massive 8.01% distribution. Energy Transfer L.P. (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:
After purchasing Enable Partners in December 2021, Energy Transfer owns and operates more than 114,000 miles of pipelines and related assets in 41 states, covering all of the major U.S. producing regions and markets. This further solidifies its leadership position in the midstream sector.
Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, 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 L.P. (NYSE: SUN), and the public partner interests and 39.7 million standard units of USA Compression Partners L.P. (NYSE: USAC).
This company is one of the top holdings in the Alerian MLP energy exchange-traded fund and pays a healthy 8.01% dividend. MPLX L.P. (NYSE: MPLX) is primarily engaged in transporting crude oil and refined products and terminating in the US Midwest and Gulf Coast regions and natural gas gathering and processing in the northeast from its prior acquisition of MarkWest Energy in 2015. Independent US refiner Marathon Petroleum Corp. (NYSE: MPC) formed MPLX.
The company’s assets include:
MPLX also owns:
This high-yielding company, run by real estate legend Barry Sternlicht, offers big-time total return potential and a 9.72% 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:
The Commercial and Residential Lending segment:
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:
Five High-Yield Dividend Stocks Under $20 Are Perfect Passive Income Ideas
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