Latest news with #dividends
Yahoo
2 hours ago
- Business
- Yahoo
3 Monster High-Yield Stocks to Hold for the Next 10 Years
Realty Income is the largest net lease REIT and offers an attractive 5.6% yield. Brookfield Asset Management is planning to grow its dividend at 15% a year through the end of the decade. Target's retail business is struggling today, but the Dividend King has an attractive 4.6% yield and turnaround plans. 10 stocks we like better than Realty Income › The average time a Wall Street investor holds a stock has shortened dramatically over the decades. At this point, buying and holding a stock for 10 years is a virtual eternity. But there's a benefit to being a small investor because you can hold for that long and you don't have to worry about anyone breathing down your neck about the performance of the stocks you own. You can buy boring but reliable high-yield stocks like Realty Income (NYSE: O). Or dividend growth stocks with an income payoff that builds over time, such as Brookfield Asset Management (NYSE: BAM). Or even down-on-their-luck Dividend Kings like Target (NYSE: TGT) that are working on business turnarounds that will play out over years and not days. All three of these high yielders are worth close attention today. Realty Income is the largest net lease real estate investment trust (REIT). It owns single-tenant properties for which the tenants are responsible for most property-level operating costs. It owns over 15,600 properties, so it has an extremely large portfolio that spans across retail and industrial assets across North America and Europe. This is good and bad at the same time. To get the bad out of the way right up front, Realty Income is a tortoise of a business because it takes so much investment activity to move the needle on the top and bottom lines. On the good side, having such a large portfolio gives the REIT attractive access to capital markets, the size to take on deals that its smaller peers couldn't handle, and the ability to act as an industry consolidator. While slow and steady is the pace here, history suggests that slow and steady can be very rewarding for conservative income investors. That's particularly true when you consider the 5.6% dividend yield, which is backed by an investment-grade rated balance sheet and a dividend that has been increased annually for three decades. And the dividend is paid monthly, too, so Realty Income is kind of like a paycheck replacement. If you are a conservative dividend investor, this monster-sized net lease REIT should be on your short list today, with a plan to hold it for at least the next 10 years, if not longer. Brookfield Asset Management is one of the largest asset managers in Canada, but it is still much smaller than many of its U.S. peers. That's actually a monster of an opportunity when you look at the dividend. The yield today is around 3.1%, which isn't bad given the tiny 1.2% yield on offer from the S&P 500 index (SNPINDEX: ^GSPC). But the most recent dividend increase was a huge 15%, and management believes it can keep that rate of dividend growth going through at least the end of the decade. The yield and dividend growth combo here should interest dividend growth investors as well as growth and income investors. The big story with Brookfield Asset Management is going to be its ability to accumulate assets. As an asset manager, it gets paid fees for managing other peoples' money. Right now it has around $550 billion in fee-generating assets. The goal is to have $1.1 trillion by the end of the decade. It operates across the renewable power, infrastructure, real estate, private equity, and credit niches, so it has multiple levers for growth. The headliner here, however, is still that 15% dividend growth rate, which will double the current dividend in just five years. That's a huge increase in the income you can collect from Brookfield Asset Management in a very short period of time. Target is one of the largest retailers in the United States, competing against Walmart with a slightly more upscale look and feel. The big claim to fame here is the retailer's monster dividend record, which includes 58 consecutive annual dividend hikes. That makes Target a Dividend King, one of a highly elite group of companies that have proven that they have durable business models. For the record, Target's dividend streak is six years longer than Walmart's. Still, Target has a historically high yield of around 4.6% today. The truth is, Target's high yield is a result of the fact that its retail concept isn't resonating very well with consumers right now. Walmart's everyday low prices are bringing in customers more than Target's focus on fancier stores and products. It isn't unusual for retail trends to wax and wane over time, and history suggests that Target will find a way to turn its business around. In fact, it has recently overhauled its management team with the goal of more proactively effectuating a business upturn. Given Target's size, it could take a little while to get the ship moving in a new direction. Thus, you'll want to go in with a plan to hold it for the long term. But you'll get paid very well to wait for the turnaround to play out with that lofty yield and the regular annual dividend increases that back it. For more aggressive investors, that should sound like a pretty good deal. Realty Income is a monster-sized REIT with a reliable and large yield for income seekers. Brookfield Asset Management is targeting a monstrous dividend growth rate, for dividend growth and growth and income investors. And Target, as a Dividend King, has a monster of a dividend record and a historically high yield, for investors willing to dip into turnaround stocks. Take the time to get to know these high yielders and one, or more, could end up in your portfolio today. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Reuben Gregg Brewer has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income, Target, and Walmart. The Motley Fool recommends Brookfield Asset Management. The Motley Fool has a disclosure policy. 3 Monster High-Yield Stocks to Hold for the Next 10 Years was originally published by The Motley Fool
Globe and Mail
2 hours ago
- Business
- Globe and Mail
2 No-Brainer High-Yield Stocks to Buy With $1,000 Right Now
Annaly Capital Management (NYSE: NLY) is offering a massive 14%-plus dividend yield today. And the dividend was just increased at the start of 2025, too. Sounds great, right? But, before you run out and buy the stock, you need to dig into the company's history just a little bit. You'll likely be better off with the lower yields on offer from Realty Income (NYSE: O) and Bank of Nova Scotia (NYSE: BNS). Here's why Annaly could set income investors up for failure while Realty Income and Bank of Nova Scotia should leave you rolling in the dough. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » What are you looking to achieve with dividends? Dividend investors come in all shapes and sizes, so there's no one right way to invest in dividend stocks. However, a common theme is that dividend investors are often trying to create an income stream that can support them in retirement. This is an important fact to consider as you invest your hard-earned savings, be it $100, $1,000, or $100,000. Far too often, investors chase yield without giving proper consideration to the risk of dividend cuts. This is the big problem with Annaly Capital Management's huge dividend yield. The company is a mortgage real estate investment trust (mREIT). That means it buys mortgages that have been pooled into bond-like securities, not physical properties that it leases to tenants. Mortgage REITs are very similar to mutual funds, with the REITs earning the difference between their costs (which include interest expenses) and the interest they receive from the securities they buy. There are a lot of moving parts, but the important outcome is that the dividends that mREITs pay have proven to be rather unreliable. As the chart below highlights, even though Annaly Capital just increased its dividend in 2025, that comes after a long string of cuts. And even before that string of cuts, the dividend was up and down. Data by YCharts. Notice, however, that the share price has tended to trend along with the dividend. So that long downtrend in the dividend meant that income-focused investors would have been left with less income and less capital. That's a terrible outcome for anyone trying to live off their dividends. Stick with consistent dividend stocks Compare the ups and downs of Annaly Capital's dividend to the three decades worth of annual dividend increases on offer from the property-owning REIT Realty Income. Its 5.6% yield may be lower, but if you want to feel comfortable that you'll keep getting paid at the same or higher rate, Realty Income wins hands down. And the business model is much easier for investors to understand, given that Realty Income does the same thing you would do if you owned a rental property, only on a much larger scale. Scale is important here, though, because Realty Income is the largest net lease REIT, which just means its tenants pay for most property-level operating costs. Being large has allowed Realty Income to become highly diversified, with over 15,600 properties spread across the United States and Europe. It owns retail, industrial, and a fairly broad group of "other" assets, like vineyards and casinos. All in, it is one of the most diversified and reliable REITs you can own. Boring is really the name of the game for high-yield Realty Income. For those who don't mind taking on a little more risk, a good choice could be Bank of Nova Scotia, commonly known as Scotiabank. It has paid a dividend every single year since 1833. It didn't cut its dividend like many of the largest U.S. banks did during the Great Recession between 2007 and 2009. And while it paused the increases in its dividend in 2024 as it shifted its business model slightly, it increased them again in 2025. Add in a lofty 5.9% dividend yield, and you can see why dividend investors might be attracted to the stock. The key here is that Scotiabank is Canadian. Canada has a highly regulated banking market, with regulators basically giving a handful of large banks entrenched positions. Scotiabank is one of those banks, so the business has a very strong foundation. The heavy regulation has also created a conservative ethos that permeates Scotiabank's operations both in its home market and abroad. That said, a decision to focus on Central and South America for growth didn't pan out as well as management had hoped. Scotiabank is now refocusing its growth on Mexico and the United States, and making solid early progress. The dividend increase is proof of that. Scotiabank is another solid option if you are looking to buy a reliable dividend stock. What does $1,000 get you? With $1,000, you can buy around 18 shares of Scotiabank and 17 shares of Realty Income. And then you can sit back and collect attractive yields that are backed by dividends that are likely to grow over time. Or you can buy 50 or so shares of ultra-high-yielding Annaly Capital and pray that the income stream in the future isn't as volatile as the mREIT's dividend history suggests it will be. Most dividend investors will be better off with Realty Income and Scotiabank. Should you invest $1,000 in Annaly Capital Management right now? Before you buy stock in Annaly Capital Management, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Annaly Capital Management wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor 's total average return is1,048% — a market-crushing outperformance compared to175%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
Yahoo
3 hours ago
- Business
- Yahoo
Ready Capital Corporation (RC) Declares Quarterly Dividends
Ready Capital Corporation (NYSE:RC) is one of the 10 best-value penny stocks to buy, according to analysts. On June 14, the company's board of directors approved a cash dividend of $0.125 per share of common stock. The dividend will be paid to shareholders on July 31, 2025, as of the close of business on June 30, 2025. Copyright: bugtiger / 123RF Stock Photo In addition, the board declared a quarterly cash dividend on its 6.25% Series C Cumulative Convertible Preferred Stock and 6.50% Series E Cumulative Redeemable Preferred Stock. It also declared a dividend of $0.390625 per share of Series C Preferred Stock, payable to Series C Preferred stockholders on July 15, 2025. The quarterly dividends come on the heels of Ready Capital generating a net income of $81.97 million for its first quarter of 2025. It was a significant turnaround from a net loss of $74.17 million for the same quarter last year. Ready Capital Corporation (NYSE:RC) is a real estate finance company that originates, acquires, finances, and services commercial real estate loans for small to medium-sized businesses. It also offers small business loans through the SBA 7(a) program and provides financing for commercial real estate, including agency multifamily, investor, and bridge loans. While we acknowledge the potential of RC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 hours ago
- Business
- Yahoo
Univest (UVSP) Could Be a Great Choice
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Based in Souderton, Univest (UVSP) is in the Finance sector, and so far this year, shares have seen a price change of 4.37%. The holding company for Univest Bank and Trust Co. Is currently shelling out a dividend of $0.22 per share, with a dividend yield of 2.86%. This compares to the Banks - Northeast industry's yield of 2.77% and the S&P 500's yield of 1.6%. Taking a look at the company's dividend growth, its current annualized dividend of $0.88 is up 4.8% from last year. Over the last 5 years, Univest has increased its dividend 1 times on a year-over-year basis for an average annual increase of 1.42%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Univest's current payout ratio is 32%. This means it paid out 32% of its trailing 12-month EPS as dividend. Looking at this fiscal year, UVSP expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $2.78 per share, with earnings expected to increase 11.20% from the year ago period. Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout. Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that UVSP is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Univest Corporation of Pennsylvania (UVSP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
5 hours ago
- Business
- Yahoo
Is It Smart To Buy RFG Holdings Limited (JSE:RFG) Before It Goes Ex-Dividend?
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that RFG Holdings Limited (JSE:RFG) is about to go ex-dividend in just 3 days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. In other words, investors can purchase RFG Holdings' shares before the 2nd of July in order to be eligible for the dividend, which will be paid on the 7th of July. The company's next dividend payment will be R00.296 per share, on the back of last year when the company paid a total of R0.59 to shareholders. Based on the last year's worth of payments, RFG Holdings stock has a trailing yield of around 3.6% on the current share price of R016.42. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. RFG Holdings paid out 68% of its earnings to investors last year, a normal payout level for most businesses. A useful secondary check can be to evaluate whether RFG Holdings generated enough free cash flow to afford its dividend. It distributed 40% of its free cash flow as dividends, a comfortable payout level for most companies. It's positive to see that RFG Holdings's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. View our latest analysis for RFG Holdings Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. It's encouraging to see RFG Holdings has grown its earnings rapidly, up 20% a year for the past five years. Management appears to be striking a nice balance between reinvesting for growth and paying dividends to shareholders. With a reasonable payout ratio, profits being reinvested, and some earnings growth, RFG Holdings could have strong prospects for future increases to the dividend. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. RFG Holdings has delivered 9.1% dividend growth per year on average over the past 10 years. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders. From a dividend perspective, should investors buy or avoid RFG Holdings? RFG Holdings's growing earnings per share and conservative payout ratios make for a decent combination. We also like that it paid out a lower percentage of its cash flow. RFG Holdings looks solid on this analysis overall, and we'd definitely consider investigating it more closely. While it's tempting to invest in RFG Holdings for the dividends alone, you should always be mindful of the risks involved. Our analysis shows 1 warning sign for RFG Holdings and you should be aware of this before buying any shares. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
