One of the best ways to keep your portfolio safe from incessant market volatility is with ultra-high-yield dividend stocks.

Look at Rithm Capital (NYSE:RITM), for example.

With the Federal Reserve likely to cut interest rates this month, the real estate investment trust should benefit, especially with its focus on mortgage origination loans. In fact, once the central bank cuts interest rates, it’ll help lower the borrowing costs for RITM and potentially lead to a higher rate of strong earnings growth.

Even better, RITM yields about 8.64% and trades at just 0.93x book.

Not only can investors make money from the company’s consistent dividends, but they also make money from stock appreciation.

Even better, here are five other ultra-high-yield dividend stocks to buy with $1,000.

Key Points About This Article:

• With incessant market volatility, keep your portfolio protected with strong dividends.
• Dividend stocks offer two key benefits: income from dividends and capital appreciation.
• Keep your portfolio well-protected with reliably safe stocks with yield. You may also want to grab your free copy of “2 Legendary High-Yield Dividend Stocks“

Innovative Industrial Properties

With a yield of just over 6%, Innovative Industrial Properties (NYSE:IIPR) is a commercial mortgage real estate investment trust that provides financing to the cannabis industry.

While cannabis is still a controversial investing topic, it’s tough to avoid. For one, both presidential candidates support legalization efforts. In fact, Donald Trump just signaled support for reclassifying cannabis as a less dangerous drug. Two, according to the Pew Research Center, nine out of 10 Americans say it should be legalized.

All of which could have a substantial impact on IIPR and its future dividend payouts.

Even more impressive, IIPR’s second-quarter funds from operations (FFO) of $2.06 beat by six cents. Revenue of $79.8 million, up 4.4% year over year, beat by $2.54 million. Again, should we see further legalization efforts, IIPR could be a prime beneficiary.

Universal Health Realty Income Trust

We can also look at healthcare REIT Universal Health Realty Income Trust (NYSE:UHT).

At the moment, the REIT benefits from owning healthcare and human service-related facilities, including acute care hospitals, behavioral healthcare facilities, rehabilitation hospitals, sub-acute care facilities, surgery centers, childcare centers, and medical office buildings. 

Plus, with a yield of 6.6%, the up-trending REIT just announced a new dividend of 73 cents, which is payable on September 30 to shareholders of record as of September 16.

Earnings haven’t been too shabby either. In its most recent quarter, the company posted net income of $5.3 million, or 38 cents per diluted share, as compared to the $3.5 million, or 25 cents per diluted share posted a year earlier.

Kinder Morgan

With a yield of about 5.5%, Kinder Morgan (NYSE:KMI) is another high-yielding stock to buy and hold, especially with artificial intelligence data center power demand.

For one, Kinder Morgan is the biggest natural gas pipeline operator with a 40% market share. Two, KMI could be a strong beneficiary of the artificial intelligence data center energy boom.

As reported by CNBC, “Natural gas is expected to supply 60% of the power demand growth from AI and data centers, while renewables will provide the remaining 40%, according to Goldman Sachs’ report published in April.”

Verizon

 

With a yield of 6.33%, Verizon (NYSE:VZ) is another hot high-yielding dividend stock to buy.

Over the last few weeks, the company raised its dividend to $0.6775 from $0.6650, which is payable on November 1 to shareholders of record as of October 10. Better, this is now the 18th consecutive year the company has increased its yield. Plus, with millions of paying subscribers, the company has even more flexibility to continue to increase it moving forward.

In addition, while its $20 billion acquisition of Frontier Communications could dent its balance sheet, it should be able to absorb the hit. We also have to remember that the acquisition will help grow Verizon’s subscriber base to 25 million in 31 states, plus Washington, D.C.

Realty Income

There’s also Realty Income (NYSE:O), a real estate investment trust with a yield of 5.01%.

Over the last few weeks, the REIT declared a dividend of $0.263, payable on September 13 to shareholders of record as of September 3. If you missed this one, don’t worry about it. The REIT pays dividends every month like clockwork.

Referred to as The Monthly Dividend Company, it’s been paying a dividend for more than 31 years now. Even better, it’s a dependable REIT that relies on triple net leases, where the tenant pays the taxes, insurance and maintenance costs. It also owns recession-proof properties, including grocery and convenience stores.

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