Scared of Inflation Returning? 6 Dividend Stocks That Can Slay Surging Prices

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By Lee Jackson Published
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Scared of Inflation Returning? 6 Dividend Stocks That Can Slay Surging Prices

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An adage among real estate investors says, “You can’t make or create any more land,” while you can always build higher, you still need the land. Real estate is one of the best assets most investors are underweighted on. While those who own a home are technically real estate investors, home ownership doesn’t produce any income unless you have rental homes, which can be very capital-intensive, not to mention time-consuming.

When inflation is part of the economic landscape, real estate, gold, and commodities stocks are often the best companies to own. While inflation has cooled from a red-hot 9.1% in June of 2022, the current inflation rate of 3.4% came in above estimates for December, and the Core consumer price index is DOUBLE the Federal Reserve target.

We screened our 24/7 Wall St. dividend inflation stock universe and found six stocks that pay big dividends and can help investors navigate the continuing inflation currents.

Energy Transfer

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The top master limited partnership is a safe way for investors looking for energy exposure and income, as the company pays a massive 9.40% distribution. Energy Transfer LP (NYSE: ET | ET Price Prediction) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins.

The company is a publicly traded limited partnership with core operations that include:

  • Complementary natural gas midstream
  • Intrastate and interstate transportation and storage assets
  • Crude oil, natural gas liquids (NGL), and refined product transportation and terminalling assets
  • NGL fractionation and various acquisition and marketing assets

Energy Transfer owns and operates more than 114,000 miles of pipelines and related assets in all significant U.S.-producing regions and markets across 41 states, further solidifying its leadership position in the midstream sector.

Through its ownership of Energy Transfer Operating, L.P., the company also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco LP (NYSE: SUN), and the public partner interests and 39.7 million standard units of USA Compression Partners, LP (NYSE: USAC).

EPR Properties

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If you want fun in 2024, this top company may own a chunk of the amusement park or property you travel to and pay a hefty 6.90% dividend. EPR Properties Inc. (NYSE: EPR) is a leading experiential net lease real estate investment trust (REIT) specializing in select enduring experiential properties in the real estate industry.

The company focuses on real estate venues that create value by facilitating out-of-home leisure and recreation experiences where consumers spend their discretionary time and money, with nearly $5.7 billion (after depreciation) in total investments across 44 states.

EPR Properties adheres to rigorous underwriting and investing criteria centered on key industry, property, and tenant-level cash flow standards, and they believe a very focused approach provides a competitive advantage and the potential for stable and attractive returns.

Gladstone Commercial

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This company was hit hard as interest rates were charged higher last year, and it is offering the best entry point in some time and a massive 8.98% dividend. Gladstone Commercial Corporation (NASDAQ: GOOD) is focused on acquiring, owning, and operating net leased industrial and office properties across the United States.

Gladstone owns a diversified portfolio of 121 office and industrial properties in 27 states and leased to 106 tenants. The company has grown its portfolio consistently, disciplined at 18% per year since the IPO in 2003.

They match long-term leased properties with long-term debt to lock in the spread to create a durable, stable cash flow stream to fund monthly distributions to shareholders. Current occupancy stands at 96.5%, and occupancy has never dipped below 95.0% since the company’s IPO in 2003.

Most importantly for investors, Gladstone has a track record of success, exhibited by a history of solid distribution yields, consistent occupancy greater than 95.0%, and 10+ years of paying continuous monthly cash distributions.

Newmont Corporation

gold
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This is one of the largest mining companies, yields a solid 4.22%, and is a timely buy for more conservative accounts. Newmont Corporation (NYSE: NEM) is a gold producer.

It operates through the following geographical segments:

  • North America
  • South America
  • Nevada
  • Australia
  • Africa

The North American segment consists primarily of:

  • Carlin
  • Phoenix
  • Twin creeks and Long Canyon in the state of Nevada
  • Cripple Creek and Victor in the state of Colorado in the United States

The South American segment consists primarily of:

  • Yanacocha in Peru
  • Merian in Suriname

The Australia segment consists mainly of Australia’s Boddington, Tanami, and Kalgoorlie

The Africa segment consists primarily of Ahafo and Akyem in Ghana

Simon Property Group

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This leading company has rallied off the 2023 lows, offering patient investors a hefty 5.25% dividend. Simon Property Group Inc. (NYSE: SPG) invests in the global real estate markets.

The company invests, owns, manages, and develops properties.

Simon Property Group primarily invests in:

  • Regional malls
  • Premium outlets
  • Mills
  • Community/lifestyle centers

Through its subsidiary partnership, it owns or has an interest in about 230 properties in the US and Asia.

The company also has a 28.9% interest in Klepierre, a European REIT with over 260 shopping centers in 13 countries.

Starwood Property Trust

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This is a high-yielding company run by real estate legend Barry Sternlicht that offers big-time total return potential and a 9.09% dividend. Starwood Property Trust, Inc. (NYSE: STWD) operates as a real estate investment trust (REIT) in the United States, Europe, and Australia.

It operates through four segments:

  • Commercial and Residential Lending
  • Infrastructure Lending
  • Property
  • Investing and Servicing segments

The Commercial and Residential Lending segment:

  • Originates, acquires, finances, and manages commercial first mortgages
  • Non-agency residential mortgages
  • Subordinated mortgages
  • Mezzanine loans
  • Preferred Equity
  • Commercial mortgage-backed securities (CMBS)
  • Residential mortgage-backed securities

The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments.

The Property segment primarily develops and manages equity interests in stabilized commercial real estate properties, such as multifamily properties and commercial properties subject to net leases, that are held for investment.

The Investing and Servicing segment:

  • Manages and works out problem assets
  • Acquires and contains unrated, investment grade, and non-investment grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions
  • Originates conduit loans to sell these loans into securitization transactions and acquire commercial real estate assets, including properties from CMBS trusts.

 

 

 

 

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About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.

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