Investors love dividend stocks because they provide dependable income and give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the actual investment or portfolio return consists of income and stock appreciation.
At 247 Wall St., we always like to remind our readers about the impact total return has on portfolios because it is one of the best ways to help improve the chances for overall investing success. Again, total return is the combined increase in a stock’s value plus dividends. For instance, if you buy a stock at $20 that pays a 3% dividend, and it goes up to $22 in a year, your total return is 13%—10% for the increase in stock price and 3% for the dividends paid.
We screened our 24/7 Wall St. dividend stock research database and found 5 Ultra-Yield dividends stock investors should load the boat on now. All are rated Buy on Wall Street.
Alliance Resource Partners
This company is a leader in the thermal coal business, offers solid diversity, and a massive 12.50% yield. Alliance Resource Partners L.P. (NASDAQ: ARLP), a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States.
The company operates through four segments:
- Illinois Basin Coal Operations,
- Appalachia Coal Operations,
- Oil and Gas Royalties, and
- Coal Royalties.
The company operates seven underground mining complexes in:
- Illinois, Indiana,
- Kentucky,
- Maryland,
- Pennsylvania, and
- West Virginia.
In addition, it leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana; and buys and resells coal, as well as owns mineral and royalty interests in approximately 1.5 million gross acres of oil and gas-producing regions primarily in the Permian, Anadarko, and Williston Basins.
The company offers various mining technology products and services, including data networks, communication and tracking systems, mining proximity detection systems, industrial collision avoidance systems, and data and analytics software.
Altria
This maker of tobacco products offers value investors a great entry point now and pays a rich 9.75% dividend. Altria Group Inc. (NYSE: MO | MO Price Prediction) manufactures and sells smokable and oral tobacco products in the United States through its subsidiaries.
The company provides cigarettes primarily under:
- The Marlboro brand
- Cigars and pipe tobacco, principally under the Black & Mild brand
- Moist smokeless tobacco products and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- On! Oral nicotine pouches.
Altria also owns over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer, which some feel is worth more than $10 billion and a company segment that could be sold. Given the public relations disaster the company has gone through this year, it could very well be on the chopping board.
Last June, the company purchased NJOY Holdings, which makes electronic cigarettes and vaping products, for $2.75 billion. The company has increased its dividend for 52 consecutive years.
Energy Transfer
The top master limited partnership is a safe way for investors looking for energy exposure and income as the company pays a massive 9.40% distribution. Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins.
The company is a publicly traded limited partnership with core operations that include:
- Complementary natural gas midstream,
- Intrastate and interstate transportation and storage assets
- Crude oil, natural gas liquids (NGL)
- Refined product transportation and terminalling assets, NGL fractionation, and various acquisition and marketing assets.
Energy Transfer owns and operates more than 114,000 miles of pipelines and related assets in all significant U.S.-producing regions and markets across 41 states, further solidifying its leadership position in the midstream sector.
Through its ownership of Energy Transfer Operating, L.P., the company also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco LP (NYSE: SUN), and the public partner interests and 39.7 million standard units of USA Compression Partners, LP (NYSE: USAC).
FS KKR
This is a well-known name on Wall Street, offering a solid entry point at current levels and paying a massive 14.18 dividend. FS KKR Capital Corp. (NASDAQ: FSK) is a business development company specializing in investments in debt securities. It seeks to purchase interests in loans through secondary market transactions or directly from the target companies as primary market investments.
The company also seeks to invest in first-lien senior secured loans, second-lien secured loans, and, to a lesser extent, subordinated loans or mezzanine loans. In connection with the debt investments, the firm also receives equity interests such as warrants or options as additional consideration.
FS KKR also seeks to purchase minority interests in common or preferred equity in our target companies, either in conjunction with one of the debt investments or through a co-investment with a financial sponsor.
The fund may invest in corporate bonds and similar debt securities opportunistically. It aims to invest in small and middle-market companies in the United States.
The company seeks to invest in firms with annual revenue between $10 million to $2.5 billion. It aims to exit from securities by selling them in a privately negotiated over-the-counter market.
The company posted stellar results for the most recent quarter, trades at a considerable discount to net asset value, and announced a continuation of a massive stock buyback.
Starwood Property Trust
This is a high-yielding company run by real estate legend Barry Sternlicht that offers big-time total return potential and a 9.53% dividend. Starwood Property Trust, Inc. (NYSE: STWD) operates as a real estate investment trust (REIT) in the United States, Europe, and Australia.
It operates through four segments:
- Commercial and Residential Lending
- Infrastructure Lending
- Property
- Investing and Servicing segments.
The Commercial and Residential Lending segment originates, acquires, finances, and manages commercial first mortgages, non-agency residential mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (CMBS), and residential mortgage-backed securities, as well as other real estate and real estate-related debt investments, including distressed or non-performing loans.
The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments.
The Property segment primarily develops and manages equity interests in stabilized commercial real estate properties, such as multifamily properties and commercial properties subject to net leases, that are held for investment.
The Investing and Servicing segment manages and works out problem assets; acquires and contains unrated, investment grade and non-investment grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions; originates conduit loans for the primary purpose of selling these loans into securitization transactions; and acquires commercial real estate assets that include properties received from CMBS trusts.
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