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.
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 Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.
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