Dividend stocks are a favorite among investors for good reason. They provide a steady stream of passive income and offer a promising avenue for total return. Total return, is a comprehensive measure of investment performance that encompasses interest, capital gains, dividends, and distributions realized over time. Let’s examine the concept of total return. If you purchase a stock at $20 that pays a 3% dividend ($0.60 per share) and the price rises to $22 in a year, your total return is ($22 + $0.60 – $20) / $20 = 13%. This combines the price appreciation and the dividend received.
24/7 Wall St. Key Points:
- The Fed Dot Plot indicates there will still be two interest rate cuts this year
- Higher-yielding dividend stocks will benefit from the rate cuts
- We constantly look for high-yield dividend stocks that are not crowded trades
- Are stocks paying 7% and higher dividends a good fit for you? Why not meet with a financial advisor near you for a complete portfolio review? Click here to get started finding one today. (Sponsored)
Why do we cover dividend stocks?
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Apple Hospitality REIT
Apple Hospitality REIT owns one of the largest portfolios of upscale, select-service hotels in the United States. Apple Hospitality REIT, Inc. (NYSE: APLE) | APLE Price Prediction is a publicly traded real estate investment trust that pays a solid monthly dividend and distinguishes itself in the market with its unique offerings.
The Company comprises 224 hotels with more than 30,066 guest rooms in 87 markets throughout 37 states, as well as one property leased to third parties.
Apple Hospitality REIT’s portfolio comprises 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels.
Its hotels operate primarily under Marriott or Hilton brands. They are operated and managed under separate management agreements with 16 hotel management companies, including:
- Hilton Garden Inn
- Hampton
- Courtyard
- Residence Inn
- Homewood Suites
- SpringHill Suites
- Fairfield
- Home2 Suites
- TownePlace Suites
- AC Hotels
- Hyatt Place
- Marriott
- Embassy Suites
- Aloft
- Hyatt House
Apple Hospitality hotels are in various states, including Alaska, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Kansas, Louisiana, Michigan, and others.
Healthpeak Properties
This leading company invests in real estate related to the healthcare industry, including senior housing, life science, and medical offices. Healthpeak Properties, Inc. (NYSE: DOC) is a fully integrated real estate investment trust (REIT).
The Company acquires, develops, owns, leases, and manages healthcare real estate across the United States. It owns, operates, and develops real estate focused on healthcare discovery and delivery.
Healthpeak Properties segments include:
- Lab
- Outpatient medical
- Continuing care retirement community (CCRC).
The Outpatient medical segment owns, operates, and develops outpatient medical buildings, hospitals, and lab buildings.
The lab segment properties contain laboratory and office space, and are leased primarily to:
- Biotechnology
- Medical device and pharmaceutical companies
- Scientific research institutions
- Government agencies
- Organizations involved in the life science industry
Its CCRC segment is a retirement community that offers independent living, assisted living, memory care, and skilled nursing units, and generally provides “one-stop” financing alternatives within its lower middle market, offering a continuum of care within an integrated campus.
Main Street Capital
Main Street Capital has helped over 200 private companies grow or transition by providing flexible private equity and debt capital solutions. This company is a favorite across Wall Street and offers a substantial dividend. Main Street Capital Corporation (NASDAQ: MAIN) is a private equity firm that provides equity capital to lower-middle market companies.
The firm also provides debt capital to middle-market companies for:
- Acquisitions
- Management buyouts
- Growth financings
- Recapitalizations
- Refinancing
The firm seeks to partner with entrepreneurs, business owners, and management teams, and generally provides “one-stop” financing alternatives within its lower middle-market portfolio.
Main Street Capital typically invests in lower middle market companies with annual revenues between $10 million and $150 million.
The firm’s middle market debt investments are in businesses that are generally larger than its lower middle market portfolio companies. It also creates majority and minority equity.
Telus
This is an off-the-radar telecommunications and tech company with excellent upside potential. Telus Corp (NYSE: TU) provides a range of telecommunications technology solutions, which include:
- Mobile and fixed voice and data telecommunications services and products
- Healthcare services
- Software and technology solutions
- Agriculture and consumer goods services, such as software, data management, and data analytics-driven smart-food chain and consumer goods technologies, and digital experiences, as well as related equipment.
Data services include Internet protocol, television, hosting, managed information technology, cloud-based services, and home and business security and automation.
TELUS Digital, a subsidiary of the Company, provides a portfolio of end-to-end, integrated capabilities, including:
- Digital solutions, such as cloud solutions and automation
- Trust, safety, and security services
- Artificial intelligence (AI) data solutions, including proficiency in computer vision, front-end digital design, and consulting services
USA Compression Partners
USA Compression Partners provides natural gas compression services under term customer contracts. While perhaps less known than their peers, this top company pays shareholders one of the largest dividends in the industry. USA Compression Partners, LP. (NYSE: USAC) provides natural gas compression services.
The company offers compression services to:
- Oil companies and independent producers
- Processors
- Gatherers
- Transporters of natural gas and crude oil, as well as operating stations
USA Compression Partners primarily provides natural gas compression services to infrastructure applications, including centralized natural gas gathering systems, processing facilities, and gas lift applications for crude oil wells.
Top Gaining Stocks
Top Losing Stocks