ETFs
2 dividend stocks and 2 ETFs for consistent, reliable income
2 dividend stocks and 2 ETFs for consistent, reliable income
Benzinga and Yahoo Finance LLC may earn commissions or revenue from certain articles through the links below.
Since 2012, the value of high-income stocks and exchange-traded funds (ETFs) has declined. Rising interest rates have made bonds, Treasuries, and CDs more attractive. If inflation remains high, this trend will likely persist until 2024.
However, buying high-yielding stocks and ETFs now could be a smart move if you think interest rates will fall in the future.
Notable high-yielding options currently include Real estate income (NYSE:Oh), VICI Properties (NYSE:VICI), JPMorgan Equity Premium Income ETF (NYSE:JEPI) and JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ).
2 Real Estate Stocks to Buy for High Returns
Realty Income and VICI Properties are top real estate stocks offering attractive yields.
Real Estate Investment Trusts (REITs) buy real estate, rent it out and distribute the rental income to their investors. To receive favorable tax treatment, REITs must pay at least 90% of their taxable income as dividends.
Rising interest rates have made property purchases and debt issuance more expensive, causing many REITs to suffer recently. However, the REIT market is expected to recover in the long term as interest rates gradually decline.
Maintaining an occupancy rate above 96% for over thirty years, Realty Income leases its properties to recession-resistant retailers including 7-Eleven, Dollar General, Dollar Tree and Walmart.
Realty Income, well known for its monthly dividends, has increased its payout 124 times since its IPO in 1994. Valued at 13 times last year’s adjusted funds from operations (FFO), the stock has a forward price dividend yield of 5.9%.
With anchor tenants including Caesars Entertainment, MGM Resorts, Penn Entertainment and Century Casinos, VICI Properties specializes in casino and entertainment properties throughout the United States and Canada.
VICI secures tenants with multi-decade contracts, maintaining 100% occupancy since going public in 2018. It offers a forward dividend yield of 5.9% and trades at 13 times its adjusted FFO current, although it pays quarterly dividends instead of monthly.
2 ETFs for stability and attractive monthly dividends
THE JPMorgan Equity Premium Income ETF and the JPMorgan Nasdaq Equity Premium Income ETF are well known, High yield ETF. Both ETFs use equity-linked notes (ELNs) linked to covered calls and have low expense ratios of 0.35%.
The JPMorgan Equity Premium Income ETF, which includes 130 stocks, regularly writes monthly calls on the S&P 500. In contrast, the JPMorgan Nasdaq Equity Premium Income ETF, which includes 98 stocks, writes monthly calls on the Nasdaq-100.
The story continues
The Equity Premium Income ETF returns 7.5% per year, compared to 10.9% for the Nasdaq ETF. This difference is due to the higher volatility of the Nasdaq 100 relative to the S&P 500, which generates more covered calls.
Both ETFs use covered calls, which limit their gains in strong markets. However, they offer regular monthly payouts that are higher and less volatile than other dividend-focused ETFs.
Are you looking for higher yielding opportunities?
The current high interest rate environment has created an incredible opportunity for income-seeking investors to achieve massive returns, but not through dividend stocks… Some private market real estate investments give retail investors the opportunity to capitalize on these high yield markets. opportunities and Benzinga identified some of the most attractive options to consider.
For example, Base Camp Alpine Notes offers a target APY of 9% with a term of just three months, making it a powerful short-term cash management tool with incredible flexibility. EquityMultiple has issued 61 series of Alpine Notes and has met all payment and financing obligations with no missed or late interest payments. With a low minimum investment of just $1,000, Basecamp Alpine Notes makes it easier than ever to start building a high-yield portfolio.
Don’t miss this opportunity to take advantage of high yield investments while rates are high. Check out Benzinga’s favorite high-yield deals.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This item 2 dividend stocks and 2 ETFs for consistent, reliable income originally appeared on Benzinga.com