Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.
At 247 Wall St., we always like to remind our readers about the impact total return has on portfolios because it is one of the best ways to help improve the chances for overall investing success. Again, total return is the combined increase in a stock’s value plus dividends.
For instance, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%—10% for the increase in stock price and 3% for the dividends paid.
Aggressive income investors look for companies with Ultra-Yield dividends, so we screened our 24/7 Wall St. high-dividend research database looking for stocks paying double-digit dividends as high as 15% and found five stocks that make the grade.
AGNC Investment
This company has paid solid monthly dividends for years, and the current yield is 15.09%. AGNC Investment Corp. (NASDAQ: AGNC) operates as a real estate investment trust (REIT) in the United States.
The company invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by the United States government-sponsored enterprise or by the United States government agency.
The company funds its investments primarily through collateralized borrowings structured as repurchase agreements.
AGNC Investment has elected to be taxed as a REIT under the Internal Revenue Code 1986. It would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.
Ellington Financial
This is another quality mortgage REIT company that is a favorite across Wall Street and pays a massive 14.85% dividend. Ellington Financial Inc. (NYSE: EFC), through its subsidiary, Ellington Financial Operating Partnership LLC, acquires and manages mortgage-related, consumer-related, corporate-related, and other financial assets in the United States.
The company develops and manages residential mortgage-backed securities (RMBS) backed by:
- Prime jumbo
- Alt-A,
- Manufactured housing, and subprime residential mortgage loans
- RMBS for which the principal and interest payments are guaranteed by the U.S. government agency or the U.S. government-sponsored entity
- Residential mortgage loans
- Commercial mortgage-backed securities
- Commercial mortgage loans and other commercial real estate debt
Ellington Financial also provides:
- Collateralized loan obligations
- Mortgage-related and non-mortgage-related derivatives
- Corporate debt and equity securities
- Corporate loans, and other strategic investments.
In addition, the company offers consumer loans and asset-backed securities backed by consumer and commercial assets.
Petróleo Brasileiro S.A.
This top energy company in Brazil pays a gigantic 17.24% dividend. Petróleo Brasileiro S.A. (NYSE: PBR) explores, produces, and sells oil and gas in Brazil and internationally.
The company operates through:
- Exploration and Production
- Refining
- Transportation and Marketing
- Gas and Power
It also engages in:
- Prospecting
- Drilling
- Refining
- Processing
- Trading
- Transporting crude oil from producing onshore and offshore oil fields, shale or other rocks
- Oil products, natural gas, and other liquid hydrocarbons
The Exploration and Production segment explores, develops, and produces crude oil, natural gas liquids, and natural gas primarily for supplies to domestic refineries.
The Refining, Transportation, and Marketing segment engages in the refining, logistics, transport, marketing, and trading crude oil and oil products; exportation of ethanol; and extraction and processing of shale and holding interests in petrochemical companies.
The Gas and Power segment is involved in the:
- Logistics and trading natural gas and electricity
- Transportation and trading of LNG
- Generating electricity through thermoelectric power plants
- Holding interests in natural gas transportation and distribution
- Fertilizer production and natural gas processing business
In addition, the company produces biodiesel and its co-products and ethanol and distributes oil products.
Trinity Capital
Based in Phoenix, this business development company pays a massive 14.36% dividend. Trinity Capital, Inc. (NASDAQ: TRIN) is a venture capital firm specializing in venture debt to growth-stage companies looking for loans and equipment financing.
The company is an internally managed business development company leading provider of diversified financial solutions to growth-stage companies with institutional equity investors.
Trinity Capital’s investment objective is to generate current income and, to a lesser extent, capital appreciation through investments, including term loans, equipment financings, and equity-related investments.
The firm believes it is one of only a select group of specialty lenders with a depth of knowledge, experience, and track record in lending to growth-stage companies.
Vodafone Group
This company pays investors a huge 11.18% dividend and is in a sector that always has demand. Vodafone Group PLC (NASDAQ: VOD) provides telecommunication services in Europe and internationally.
It offers mobile connectivity services comprising:
- End-to-end services for mobile voice and data, messaging
- Device management
- BYOx, and telecoms management
- Professional and consulting services
- Fixed line connectivity, such as fixed voice and data, broadband, software-defined networks
- Managed WAN, LAN, Ethernet, and satellite
- Financial services, as well as business and merchant services
The company also provides:
- Consumer Internet of Things (IoT) propositions
- Security and insurance products
- Mobile services; logistics
- Fleet management, and intelligent metering services
- WiFi; digital services comprising mobile application development, multi-access edge computing, worker insights
- AI assistant, drone detection, visual inspection, and mixed reality
- Vodafone Analytics platform; and traditional IT hosting services, including colocation, managed hosting, security, hosting infrastructure, and flexible computing for the government
In addition, it offers integrated business communication services, fixed mobile convergence services, carrier services, and IoT devices comprising managed tablets and integrated terminals.
Vodafone also offers M-Pesa, an African mobile money platform to make payments and provide financial services; Vodafone Business multi-cloud platform; and productivity solutions, as well as operates digital cloud-based television platforms.
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