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.
24/7 Wall St.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.
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.