2 Dividend Stocks And 2 ETFs For Consistent, Reliable Income


2 Dividend Stocks And 2 ETFs For Consistent, Reliable Income

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Since 2012, the value of high-yield income stocks and exchange-traded funds (ETFs) has declined. Increasing Interest rates have made bonds, Treasury bills, and CDs more attractive. If inflation remains high, this trend will likely persist through 2024.

However, buying high-yield stocks and ETFs now could be a smart move if you believe interest rates will decline in the future.

Notable high-yield options currently include Realty Income (NYSE:O), VICI Properties (NYSE:VICI), JPMorgan Equity Premium Income ETF (NYSE:JEPI), and JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ).

2 Real Estate Stocks To Buy For High Yields

Realty Income and VICI Properties are prominent real estate equities with attractive yields.

Real estate investment trusts (REITs) purchase properties, lease them out and distribute rental income to their investors. To qualify for favorable tax treatment, REITs must pay at least 90% of their taxable income as dividends.

Rising interest rates have made property purchases and debt issuance more expensive, causing many REITs to suffer recently. However, the REIT market is projected to recover in the long run as interest rates gradually decline.

Maintaining an occupancy rate above 96% for over thirty years, Realty Income leases its properties to recession-resistant retailers, including 7-Eleven, Dollar General, Dollar Tree, and Walmart.

Realty Income, well-known for its monthly dividends, has increased its payout 124 times since its 1994 IPO. Valued at 13 times last year’s adjusted funds from operations (FFO), the stock has a forward dividend yield of 5.9%.

With key tenants such as Caesars Entertainment, MGM Resorts, Penn Entertainment, and Century Casinos, VICI Properties specializes in casino and entertainment properties across the United States and Canada.

VICI secures tenants with multidecade contracts, maintaining a 100% occupancy rate since its IPO in 2018. It offers a forward dividend yield of 5.9% and trades at 13 times its trailing adjusted FFO, though it pays quarterly instead of monthly dividends.

2 ETFs For Stability and Attractive Monthly Dividends

The JPMorgan Equity Premium Income ETF and the JPMorgan Nasdaq Equity Premium Income ETF are well-known, high-yield ETFs. Both ETFs use equity-linked notes (ELNs) tied to covered calls and have low expense ratios of 0.35%.

The JPMorgan Equity Premium Income ETF, which comprises 130 equities, routinely writes monthly calls on the S & P 500. In contrast, the JPMorgan Nasdaq Equity Premium Income ETF, which includes 98 equities, writes monthly calls on the Nasdaq-100.

The Equity Premium Income ETF yields 7.5% annually, compared to 10.9% for the Nasdaq ETF. This difference is due to the Nasdaq 100’s higher volatility compared to the S & P 500’s, which generates more from covered calls.

Both ETFs use covered calls, which limit their gains in strong markets. However, they offer steady monthly payments that are higher and less volatile than those from other dividend-focused ETFs.

Looking For Higher-Yield Opportunities?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through dividend stocks… Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider.

For instance, Basecamp Alpine Notes offers a target APY of 9% with a term of only three months, making it a powerful short-term cash management tool with incredible flexibility. EquityMultiple has issued 61 Alpine Notes Series and has met all payment and funding obligations with no missed or late interest payments. With a low minimum investment of just $1,000, Basecamp Alpine Notes makes it easier than ever to start building a high-yield portfolio. 

Don’t miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga’s favorite high-yield offerings.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

This article 2 Dividend Stocks And 2 ETFs For Consistent, Reliable Income originally appeared on Benzinga.com

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