A drugmaker and an MLP promise attractive payouts to investors yearning for better yields.
In our quest to find good dividend stocks yielding 5% or more, two promising candidates fell just below the cutoff. One is a foreign drugmaker, AstraZeneca (AZN) and the other is a master limited partnership, or MLP, Teekay LNG Partners (TGP) focused on shipping liquefied natural gas. Both deserve the attention of income investors due to their attractive dividends and solid business prospects.
Some cautionary notes: Foreign stocks pose currency risk related to their markets in Europe or elsewhere. MLPs tend to be sensitive to interest rates and could slump if rates climb sharply. Also, MLPs issue complex K-1 forms, rather than standard 1099s, so they can be a headache come tax time. Consult a tax planner before investing.
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