These ultra-high dividend stocks all yield 6% or more with above-average capital appreciation potential
As interest rates increase, searching for quality companies
with ultra-high dividend stocks is even more vital for income investors looking
to deliver on their retirement dreams.
At the beginning of 2022, the S&P 500 yield was 1.27%.
At the end of June, it was up 42 basis points to 1.69%. However, over the same
period, the U.S. 10-Year Treasury went from 1.63% at the beginning of the year
to 2.97% at the end of June, an 82% increase in just six months.
So, if income is your only concern, the Treasury is the
better play over one of several index-related ETFs.
However, if you want income and capital appreciation, there
are a decent number of opportunities in the index.
What’s the definition of ultra-high dividend stock? Well, at
the very least, it’s double the current yield on the 10-year Treasury. That
brings us to 6%, more than 3x the index’s yield.
A quick index screen tells me that only six of the 505
constituent stocks in the S&P 500 yield 6% or more. I’ve got to widen the
net. The S&P 1500 currently has 50 stocks yielding 6% or more.
Here are the seven ultra-high dividend stocks to invest in
if you’re an income investor who doesn’t mind a little capital appreciation
mixed in for good measure.
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