With short-term certificates of deposit (CDs) yielding practically nothing, a troubled junk bond market, and fluctuating stock prices, appealing long-term investment opportunities are scarce.
It has become extremely difficult to find large companies with relatively strong balances that also have substantial yields based on their dividends. There are some companies, however, that regularly pay out favorable dividends. 24/7 Wall St. found eight companies after a screen of S&P 500 companies with yields greater than 5%. Dividend yield is defined as annual dividend per share divided by share price.
Dividends are highly coveted features of investments, because they provide reliable cash returns even for long-term investors.
Click here to see the 8 companies with yields above 5%.
We removed some troubled energy companies with relatively high yields from the list. These companies have been battered by oil and gas prices, which may make it difficult to maintain their dividends for long. Those stocks that remain are from S&P 500 components with a history of strong operations and long track records.
8. Frontier Communications (NYSE: FTR)
Yield: 7.95%
> Industry: Telecommunications
> Revenue: $5.6 billion
> Market cap: $6.2 billion
Founded in 1935, Frontier Communications Corp. provides telephone, data, and television services across 28 states.
7. Seagate (NYSE: STX)
Yield: 6.89%
> Industry: Electronic data storage
> Revenue: $13.8 billion
> Market cap: $10.7 billion
Founded in 1979, Seagate Technology PLC is a large business information storage company.
6. HCP (NYSE: HCP)
Yield: 6.94%
> Industry: Medical Facilities and Healthcare REIT
> Revenue: $2.5 billion
> Market cap: $15.1 billion
HCP Inc. invests in real estate, primarily used for medical facility locations, its largest holdings are in Texas, California, and Florida.
5. CenturyLink (NYSE: CTL)
Yield: 6.81%
> Industry: Telecom Services
> Revenue: $17.9 billion
> Market cap: $17.2 billion
CenturyLink runs telecom, IT services, and cloud storage services across North America, Asia, and Europe.
4. Iron Mountain (NYSE: IRM)
Yield: 5.92%
> Industry: Electronic storage and information management
> Revenue: $3 billion
> Market cap: $6.8 billion
Founded in 1951, Iron Mountain Inc. specializes in electronic record storage and data backup services.
3. Navient (NASDAQ: NAVI)
Yield: 5.15%
> Industry: Education loan management
> Revenue: $5.2 billion
> Market cap: $4.3 billion
This company manages and recovers student loan debt.
24/7 Wall St.2. Garmin (NASDAQ: GRMN)
Yield: 5.15%
> Industry: Navigation Systems, GPS
> Revenue: $2.8 billion
> Market cap: $7.6 billion
Founded in 1989 and based in Switzerland, Garmin Ltd. is one of the top global suppliers of navigation devices for cars, marine, and personal use.
1. Welltower (NYSE: HCN)
Yield: 5.12%
> Industry: medical facilities REIT
> Revenue: $3.8 billion
> Market cap: $23.8 billion
Founded in 1970, the WellTower Inc. provides real estate for senior housing facilities and acute care locations.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
