Investing
5 Spooky High-Yield Sin Stocks Are All Offering Big Treats With No Tricks
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24/7 Wall St. Insights:
Almost regardless of what happens these days, the market pushes higher. The gains continued unabated thanks to 15 years of excess central bank-provided liquidity, tempered by two years of rate hikes. Still, a massive increase in retail trading volume and the constant flow of money into passive index and exchange-traded funds kept the train rolling. The Magnificent 7 mega-cap technology stocks that have influenced the indices and pushed everything higher are reporting this week and will likely influence trading across the board.
A long-overdue sell-off is probably coming and may start right after the election. While it doesn’t necessarily mean a market crash, it could mean a fast and furious 10%, 15%, or even 20% bear market territory drop. We have been looking for ideas that could stand up best in a swift sell-off, and the group commonly known as the “sin stocks” may be just the ticket for worried investors.
One of the categories on Wall Street that some portfolio managers don’t want to discuss in their portfolios is the so-called sin stocks. These are companies that sell tobacco and alcohol products, run gambling casinos, sex-related industries, weapons manufacturers, and now even marijuana producers. While they don’t all seem sinful at the margin, some money management companies, like some investors, refuse to own them.
We screened our 24/7 Wall St. sin-stock research database and found five companies that pay dependable high-yield dividends and look like great ideas for growth, and income investors worried that we could be on the ledge of a big sell-off. All are rated Buy at top Wall Street firms.
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.
This tobacco company offers value investors two “sin” products and a rich 8.21% dividend and is touted across Wall Street as one of the top passive income stocks for investors to own now. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.
The company provides cigarettes primarily under the Marlboro brand, as well as:
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev N.V. (NYSE: BUD), the world’s largest brewer. The company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of their holdings but still leaves 8% of the outstanding shares in their back pocket. They also announced a $2.4 billion stock repurchase plan partially funded by the sale.
This top defense company pays a solid 2.40% dividend and is close to breaking out to new highs. BAE Systems PLC (BAESY) provides worldwide defense, aerospace, and security solutions.
The company operates through five segments:
The Electronic Systems segment offers:
The Cyber & Intelligence segment provides solutions to:
It also offers data intelligence solutions to protect nations, businesses, and citizens.
The Platforms & Services segment manufactures and upgrades combat vehicles, weapons, and munitions, provides naval ship repair services, and manages government-owned ammunition plants.
The Air segment develops future combat air systems and falconworks.
The Maritime segment provides maritime and land activities, including submarine, ship build, and support programs.
Warren Buffett owns Diageo PLC (NYSE: DEO), one of the largest producers of alcoholic beverages in the world. The company pays a solid 3.11% dividend.
It offers:
The company’s premium brands comprise Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray, and Guinness.
The reserve brands include:
While the iconic American beer company did merge with a Canadian beer giant, it is still based in Chicago with the main offices in Golden Colorado and Montreal and pays a solid 3.16% dividend. Molson Coors Brewing Co. (NYSE: TAP) manufactures, markets, and sells beer and other malt beverage products under various brands in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
The company offers flavored malt beverages, including hard seltzers, craft, spirits, and energy drinks, and ready-to-drink beverages.
It provides its products under:
Bergenbier, Borsodi, Carling, Coors Banquet, Coors Light, Jelen, Kamenitza, Miller Lite, Molson Canadian, and Niksicko, Ozujsko under the premium brands
The company also markets these economy brands:
The company’s strategic response to Bud Light’s marketing missteps a few years ago, which led to a surge in new customers, is a testament to its agility. Furthermore, the company is exploring new opportunities, such as the potential to market a cannabis-infused product.
This is one of the top picks across Wall Street in the net lease group and is ideal for more conservative investors looking for gaming exposure and a solid 5.40% dividend. VICI Properties Inc. (NYSE: VICI) is an S&P 500 experiential real estate investment trust with one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including three iconic entertainment facilities on the Las Vegas Strip.
VICI Properties owns 93 experiential assets across a geographically diverse portfolio 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:
VICI Properties also owns four championship golf courses and 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.
Five Well-Known High-Yield Blue Chip Dividend Stocks That Cost Less than $20
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