Every day it seems like rates go lower, and even if the Federal Reserve does raise rates this year, the fed funds rate would still be below 1%, which is a total historical anomaly. While utilities and other bond proxies have been bid to new highs as investors desperate for yield continue to buy them, other companies that provide solid yields have been forgotten about.

We screened the Merrill Lynch research database looking for companies that were rated Buy and had a yield of 7% or more. While perhaps too aggressive for conservative income accounts, they all make good sense for more risk tolerant growth and income portfolios.

CenturyLink

This is the largest of the rural local exchange carriers and is expected to continue get a large dose of government money to provide continuing internet service in rural areas. CenturyLink Inc. (NYSE: CTL) is a global communications, hosting, cloud and IT services company enabling millions of customers to transform their businesses through innovative technology solutions.

CenturyLink offers network and data systems management, Big Data analytics and IT consulting, and it operates more than 55 data centers in North America, Europe and Asia. The company provides broadband, voice, video, data and managed services over a robust 250,000-route-mile U.S. fiber network and a 300,000-route-mile international transport network.

Top Wall Street analysts have liked like the stock over the past year as the company transforms itself from a telecom to a technology company. While some have worried over CenturyLink maintaining the dividend, most are positive on the comparisons for the second half of the year and sequential revenue stability. They also cite an update on the data center sale progress and the potential for stock buybacks as additional positives.

CenturyLink investors receive a 7.61 % dividend. The Merrill Lynch price target for the stock is $42, and the Wall Street consensus target is $29.23. The stock closed trading on Wednesday at $28.40 per share.

Green Plains Partners

This clean energy stock has gained a strong Wall Street following. Green Plains Partners L.P. (NASDAQ: GPP) is an unconventional renewable energy pick, but with a market capitalization just over half a billion dollars and a big dividend yield, this company could be a nice income or growth hold. The Nebraska-based company specializes in the storage, processing and transportation of ethanol fuel. Ethanol is already a major component of current fuel options. Most retail gasoline contains some ethanol, but there is a push to increase the use of pure ethanol fuel for commercial purposes.

Demand for renewable liquid fuels is expected to grow twofold by 2030, and fourfold by 2040. Green Plains is looking to capitalize on this push and adoption by providing the infrastructure that will underpin the industry as it expands.

The company posted strong second-quarter results that came in above the analysts’ estimates. Green Plains also posted an 11% quarter-over-quarter increase in storage and throughput volumes as Green Plains Inc. crush margins meaningfully improved.

Green Plains shareholders receive an 8.4% distribution. Merrill Lynch has a $21 price target for the stock, and the consensus target is $19.13. Shares closed most recently at $19.56.

Holly Energy Partners

This stock is looking to breakout from a summer sell-off. Holly Energy Partners L.P. (NYSE: HEP) owns and operates petroleum product and crude pipelines, storage tanks, distribution terminals and loading rack facilities.

The company’s pipeline assets include approximately 810 miles of refined product pipelines that transport gasoline, diesel and jet fuel from New Mexico to Texas, Arizona, Utah and northern Mexico; approximately 510 miles of refined product pipelines that transport refined products from Texas to Oklahoma; three 65-mile pipelines that transport intermediate feedstocks and crude oil from Lovington, New Mexico, to Artesia, New Mexico; and approximately 940 miles of crude oil trunk, gathering and connection pipelines located in West Texas, New Mexico and Oklahoma.

The company’s pipeline assets also consists of approximately eight miles of refined product pipelines that support Woods Cross refinery in near Salt Lake City, Utah; gasoline and diesel connecting pipelines located at Tulsa East refinery facility; five intermediate product and gas pipelines between Tulsa east and west refineries; and crude receiving assets located at Cheyenne refinery, as well as 427-mile refined products pipeline.

Holly Energy Partners is known across the sector for being conservative with both its payout and its debt levels. The company’s distribution coverage ratio, which is generally the most common metric for measuring a master limited partnership’s (MLP’s) dividend safety, was 1.67. In an industry where a coverage ratio of 1.2 or greater is outstanding, shareholders are in good shape going forward, as is the company.

Shareholders are paid a 7.13% distribution. The $38 Merrill Lynch price target is more or less in line with the consensus target of $38.17. Shares closed Wednesday at $32.82.

Starwood Property Trust

This top real estate company makes good sense for income investors now. Starwood Property Trust Inc. (NYSE: STWD) is an affiliate of global private investment firm Starwood Capital Group and is the largest commercial mortgage real estate investment trust (REIT) in the United States.

Its core business focuses on originating, acquiring, financing and managing commercial mortgage loans and other commercial real estate debt and equity investments. Through its subsidiaries LNR Property and Hatfield Philips International, Starwood Property Trust also operates as the largest commercial mortgage special servicer in the United States and one of the largest primary and special servicers in Europe.

The company reported solid second-quarter numbers and raised guidance back in August, while also increasing its stock buyback authorization as management views the stock as currently undervalued.

Starwood Property investors receive an 8.25% distribution. The Merrill Lynch price target is $24. The consensus target is posted at $23.72. Shares closed most recently at $23.30.

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It’s important to remember that MLPs, REITs and limited partnerships can distribute income that is return of capital. With that in mind, all these companies rated Buy at Merrill Lynch make sense for accounts seeking higher income and that have a higher risk tolerance.

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