The S&P 500's dividend yield has been trending down over the years due to rising valuations and a de-emphasis on paying dividends by certain sectors. It's currently around 1%, near its lowest level in decades.
However, income-focused investors still have some enticing options. Here are five high-quality dividend stocks yielding at least 5% that you can buy right now for passive income.
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EPR Properties (NYSE: EPR) pays a monthly dividend that currently yields around 5.8%. The real estate investment trust (REIT) backs its high-yielding dividend with a diversified portfolio of experiential real estate, including theaters, eat-and-play venues, and attractions. The REIT leases its properties to operating tenants under long-term, triple net leases that generate stable cash flow because tenants cover all property operating costs, including routine maintenance, real estate taxes, and building insurance.
EPR has a conservative dividend payout ratio (around 70% of its cash flow) and a strong investment-grade balance sheet, giving it the financial flexibility to invest in new income-generating experiential real estate. It recently bought six amusement park properties from Six Flags for $315 million and then leased them to a new tenant. It expects to invest up to $600 million this year, including the purchase of an additional attraction from Six Flags. These new investments should support continued dividend growth (EPR boosted its payout by 5.1% earlier this year).
Enbridge's (NYSE: ENB) payout is right at 5%. The Canadian utility and pipeline company generates very predictable cash flow (98% regulated or take-or-pay contracted). Enbridge's earnings are so predictable that it has achieved its annual financial guidance for 20 straight years. The company pays out between 60% and 70% of its stable cash flow in dividends and has a strong investment-grade balance sheet.
The energy infrastructure company's strong financial profile supports its growth initiatives. Enbridge currently has a multi-year, multi-billion-dollar backlog of expansion projects under construction, including new oil and gas pipelines, utility expansions, and renewable energy projects. They support the company's view that it can grow its cash flow per share at around a 5% annual rate after this year. That should support continued dividend growth. Enbridge has raised its payment for 31 straight years (in Canadian dollars).
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
