Investors love dividend stocks because they provide dependable income and a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation.
At 247 Wall St., we always remind our readers about the impact total return has on portfolios because it is one of the best ways to improve the chances of overall investing success. Again, total return is the combined increase in a stock’s value plus dividends.
For example, 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.
We screened our 24/7 Wall Street dividend stock equity database, looking for the best quality stocks that pay a solid 8% or higher dividend. Five companies have hit our screens, including two top energy master limited partnerships.
Alexander’s
Alexander’s is a real estate investment trust that owns properties in New York metropolitan area, including 731 Lexington Avenue.
While off most radars and expensive, this top company could be a big winner and pays a significant 8.38% dividend. Alaxander’s Inc. (NYSE: ALX) is a New Jersey-based real estate investment trust company that primarily owns and manages high-quality retail and office space properties. The company mainly focuses on properties in the greater New York City metropolitan area.
The company posted massive results in 2023. Net income for the year ended December 31, 2023, was $102.4 million, or $19.97 per diluted share, compared to $57.6 million, or $11.24 per diluted share for December 31, 2022.
Net income for the year ended December 31, 2023, included $54.0 million, or $10.52 per diluted share, as a result of a net gain from the sale of the Rego Park III land parcel.
Funds from operations for the quarter ended December 31, 2023, were $25.6 million, or $4.99 per diluted share, compared to $20.6 million, or $4.03 per diluted share, for the quarter ended December 31, 2022.
Energy Transfer
Energy Transfer is one of North America’s largest and most diversified midstream energy companies.
The top master limited partnership is a safe way for investors looking for energy exposure and income, as the company pays a massive 8.11% 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
- Various acquisition and marketing assets.
After purchasing Enable Partners in December 2021, Energy Transfer owns and operates more than 114,000 miles of pipelines and related assets in 41 states, covering all major U.S. producing regions and markets. This further solidifies its leadership position in the midstream sector.
Through its ownership of Energy Transfer Operating, L.P., formerly known as Energy Transfer Partners, 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).
Ladder Capital Corp
Ladder originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets.
This stock looks ready to break out through a December downtrend line and offers an 8.39% dividend. Ladder Capital Corp (NYSE: LADR) is an internally managed real estate investment trust in the United States.
It operates through three segments:
- Loans,
- Securities
- Real Estate.
The Loans segment originates conduit-first mortgage loans secured by cash-flowing commercial real estate and balance sheet-first mortgage loans secured by commercial real estate properties undergoing transition, including lease-up, sell-out, and renovation or repositioning.
It also invests in note purchase financings, subordinated debt, mezzanine debt, and other structured finance products related to commercial real estate.
The Securities segment invests in commercial mortgage-backed securities, U.S. treasury and agency, corporate bonds, and equity securities.
The Real Estate segment owns and invests in a portfolio of commercial and residential real estate properties, such as:
- Leased properties
- Office buildings
- Student housing portfolios
- Hotels
- Industrial buildings
- Shopping centers
- Condominium units
MPLX
MPLX is a diversified, large-cap master limited partnership formed by Marathon Petroleum Corporation.
This company is one of the top holdings in the Alerian MLP energy exchange-traded fund and pays a healthy 8.23% dividend. MPLX LP. (NYSE: MPLX) is primarily engaged in transporting crude oil and refined products and terminating in the US Midwest and Gulf Coast regions and natural gas gathering and processing in the northeast from its prior acquisition of MarkWest Energy in 2015. Independent US refiner Marathon Petroleum Corp (NYSE: MPC) formed MPLX.
The company’s assets include:
- Network of crude oil and refined product pipelines
- Inland marine business
- Light-product terminals
- Storage caverns;
- Refinery tanks
- Docks
- Loading racks and associated piping
- Crude and light-product marine terminals
MPLX also owns:
- Crude oil and natural gas gathering systems
- Pipelines, natural gas, and NGL processing and fractionation facilities in key U.S. supply basins.
Washington Trust Bancorp
Washington Trust Bancorp, Inc. is the publicly-owned holding company of The Washington Trust Company.
This small-cap bank delivers a hefty 8.34% dividend and solid growth prospects. Washington Trust Bancorp, Inc. (NASDAQ: WASH) is the bank holding company for The Washington Trust Company of Westerly, which provides various banking and financial services to individuals and businesses.
The company operates in two segments:
- Commercial Banking
- Wealth Management Services.
The Commercial Banking segment offers deposit accounts, including:
- Interest-bearing and noninterest-bearing demand deposits
- NOW and savings accounts, money market and retirement deposit accounts, and time deposits;
- Various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages, and construction and development loans
- Commercial and industrial loans comprising working capital, equipment financing, and financing for other business-related purposes;
- Residential real estate loans that consist of mortgage and homeowner construction loans; and
- Consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft
This segment also provides debit cards, automated teller machines (ATMs), telephone banking, internet banking, mobile banking, remote deposit capture, cash management services, and investment portfolio and wholesale funding services.
The Wealth Management Services segment offers:
- Investment management
- Financial planning
- Personal trust and estate services, such as trustee, personal representative, custodian, and guardian, and settlement of decedents’ estates
It also offers institutional trust services, comprising custody and fiduciary services for personal and institutional clients.
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