Latest news with #DividendYields
Globe and Mail
04-08-2025
- Business
- Globe and Mail
2 High-Yield Dividend Stocks to Buy in August and Hold for a Decade or Longer
Key Points Treasury yields that have been rising have also pushed up dividend yields for reliable real estate investment trusts. At recent prices, Realty Income offers a 5.7% yield even though the company has kept up with a monthly dividend payment for over 55 years. W.P. Carey offers a dividend yield above 5% at recent prices, and it raises its payout every quarter. 10 stocks we like better than Realty Income › The first quarter of earnings reports following the Trump administration's new taxes on imported goods have mostly been announced already. So far, the only thing we can say for certain is that the tariffs are going to sting. Exactly how much they'll hurt is still anybody's guess. If an unpredictable trade war has you feeling queasy about the overall stock market, consider adding shares of Realty Income (NYSE: O) and W.P. Carey (NYSE: WPC) to your portfolio. These stocks are offering yields above 5% at recent prices, plus they raise those payouts every quarter like clockwork. Here's how buying them now and holding for the long run could lead to heaps of passive income once you're ready to retire. Realty Income Realty Income is a real estate investment trust (REIT). That means it can avoid paying income taxes by distributing nearly all its profits to shareholders as a dividend. It's also a proponent of net leases that transfer all the variable costs of building ownership to the tenant. On Aug. 15, Realty Income paid a monthly dividend for the 661st month in a row. Since becoming a publicly traded company in 1994, the company has raised that ultrareliable payout 131 times. It might be hard to imagine that a stock with such a reliable track record could sink, but that's what happened. The stock is down about 29% from the all-time high it set in early 2020, when interest rates were still extremely low. Now that investors can receive a risk-free yield of about 4.4% from Treasuries, they aren't as interested in reliable dividend stocks like Realty Income. At recent prices, shares of the REIT offer an unusually large 5.7% yield. That's heaps more than the 1.2% yield you would receive from the average dividend-paying stock in the benchmark S&P 500 index. Investors can reasonably expect this REIT's dividend payout to continue growing in the quarters and years ahead. In 2025, management expects adjusted funds from operations (FFO), a proxy for earnings used to evaluate REITs, to land in a range between $4.22 and $4.28 per share. That's significantly more than it needs to meet a dividend commitment currently set at an annualized $3.228 per share. At the end of March, Realty Income's commercial property portfolio contained 15,627 buildings spread across resilient categories like grocery stores and convenience stores. The company's three largest tenants are 7-Eleven, Dollar General, and Walgreens. With its top three tenants responsible for just 10% of annualized rent, credit rating agencies adore Realty Income. In June, the company sold 1.3 billion worth of unsecured, euro-denominated notes that don't mature for about eight years at a yield of just 3.7% on average. With access to ultracheap capital, Realty Income can continue generating a strong profit while offering competitive terms to prized tenants that seem likely to meet their long-term lease commitments. W.P. Carey W.P. Carey is another net lease REIT with a large and diverse tenant base. Unlike Realty Income, W.P. Carey has a blemished dividend-raising track record. In 2023, the company lowered its dividend payout by 19.6% to compensate for the spinoff of its underperforming office building portfolio. W.P. Carey has already raised its dividend payout six times since spinning off its office building portfolio. At recent prices, the stock offers a juicy 5.5% yield and a strong chance to see much more in the years ahead. With 178 million square feet of leasable space, W.P. Carey's property portfolio is a little more than half the size of Realty Income's. The company is growing its portfolio rapidly enough that it might catch up to its bigger peer in another decade or two. From the beginning of 2025 through July 29, W.P. Carey invested $1.1 billion into new properties and properties it's developing. At the midpoint of management's guided range, adjusted FFO is expected to rise 4.5% this year to $4.91 per share. That is heaps more than it needs to meet a dividend commitment currently set at an annualized $3.60 per share. W.P. Carey's portfolio isn't as large as Realty Income's, but it is more diversified. Its three largest tenants are responsible for just 7.1% of annualized base rent. At the end of the second quarter, W.P. Carey could boast 98.2% occupancy, which isn't unusual. The REIT hasn't finished a year with an occupancy rate below 98% since 2011. With a well-occupied and well-diversified portfolio, we can reasonably look forward to steady dividend raises in the years ahead. For most investors, buying some shares now to hold over the long run could be a smart move. Should you invest $1,000 in Realty Income right now? Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025
Yahoo
26-07-2025
- Business
- Yahoo
Here are the latest dividend yield forecasts for Legal & General, Aviva, and M&G shares
Financial stocks like Legal & General (LSE: LGEN), Aviva (LSE: AV.) and M&G (LSE: MNG) have been great sources of income in recent years. At times, they've been offering dividend yields of up to 10%. Interested to know how much income could be on offer from these stocks in the years ahead? Let's take a look at the latest dividend forecasts for these three FTSE 100 shares. Legal & General Starting with Legal & General, it's forecast to pay out 21.7p per share in dividends for 2025 and 22.2p per share for 2026. At today's share price of 256p, that puts the forecast yields at 8.5% and 8.7%. Now, they're obviously attractive yields and more than double what most high-interest savings accounts are paying these days. However, there's no such thing as a free lunch in the investing world. So what are the risks here? Well, one is turbulence in the financial markets. This could affect the value of assets the insurer has on its balance sheet and lead to operating losses (and potentially share price losses). Another is less demand for pension risk transfer solutions. It's worth noting that analysts at RBC just downgraded the stock to Underperform from Sector Perform and cut their price target to 220p on the back of concerns here. Personally, I think the stock's worth considering for income today. However, investors do need to acknowledge that there are some risks here and that share price weakness could offset any income received. Aviva Turning to Aviva, it's forecast to pay out 38.1p per share for 2025 and 40.8p per share for 2026. At today's share price of 636p, we have prospective yields of 6% and 6.4%. These yields aren't as high as Legal & General's, but they're still attractive. The average forward-looking yield across the FTSE 100 right now is about 3.2%. So Aviva's offering nearly double that. The risks here are quite similar to Legal & General's. In relation to pension risk transfer, the company actually advised recently that volumes this year are likely to be lower than in 2024. One other thing worth highlighting here is that the stock's had a very strong run in 2025. Year to date, it's up about 35%. I think it's still worth considering as an income play. But bear in mind that after that kind of run, it could be subject to some profit taking. M&G Finally, zooming in on M&G, analysts expect payouts of 20.6p and 21.1p per share here. Given that the share price is sitting at 259p, we have yields of 8% and 8.2%. I see this stock as a bit of an undiscovered income gem. It's not nearly as popular as stocks like Legal & General and Aviva, but its yield's excellent. It also has a good track in terms of dividend growth. Since it was spun off from Prudential in 2019, it's increased its dividend every year. Again, turbulence in the financial markets is a risk factor here. It's worth noting that this stock can be quite volatile at times. Yet I see quite a bit of appeal. In my view, it's worth considering for income. The post Here are the latest dividend yield forecasts for Legal & General, Aviva, and M&G shares appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Edward Sheldon has positions in Prudential and London Stock Exchange Group. The Motley Fool UK has recommended Prudential and M&g Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
12-07-2025
- Business
- Yahoo
An 11.5% yield?! Here's the dividend forecast for a hot income stock
Renewable energy income stocks currently offer impressive dividend yields. That's because Investor sentiment in this space remains subdued due to higher interest rates and falling energy prices. And as a consequence, many of these shares are trading at discounted valuations. NextEnergy Solar Fund's (LSE:NESF) one such enterprise with its shares trading close to a 20% discount to its net asset value, offering a staggering 11.5% yield. Yet despite this pessimism, the share price has actually been on the rise this year, climbing by 11% and outpacing many of its peers. So is this just a short-term rally? Or are we looking at the start of a long-awaited rebound? As the name suggests, NextEnergy Solar focuses on investing in utility-scale solar energy infrastructure. The bulk of its asset portfolio consists of UK solar farms with some European exposure, totalling an 865 megawatt energy-generating capacity. For reference, that's roughly enough to power 330,000 homes. The business model's simple. Generate clean electricity and sell it to the grid. The continuous need for electricity makes for a highly recurring revenue model that's translated into relatively stable cash flows. As with many renewable energy enterprises, the weather can slow things down. Yet, prudent capital allocation has enabled management to continuously hike dividends every year for the last 10 years, staying ahead of inflation. And even with the headwinds of falling electricity prices, the company's robust cash coverage indicates that payouts will continue to flow to shareholders. Dividends for its 2024 fiscal year totalled 8.43p. If the latest analyst forecasts prove accurate, that's expected to increase to 8.68p by 2027. The growth rate's hardly phenomenal. But with the yield already in double-digit territory, there remains a potentially lucrative income opportunity here. Even more so as the UK strives towards a Net-Zero energy grid by 2030. If the extraordinary 11.5% dividend yield's here to stay, why aren't more investors rushing to buy shares? We've already touched on it – energy prices. While energy inflation's certainly wreaked havoc on many households lately, the long-term trends suggest that electricity's on track to get steadily cheaper over the next 20 years. That's great news for consumers, but less so for energy generators who operate with a lot of fixed costs. Lower prices mean less profit, which could eventually compromise dividends. And with just shy of £200m of debts and equivalents on its balance sheet, it could force management to sell off some of its assets at their currently discounted prices to cover upcoming loan maturities. Pairing all this with the ever-increasing erratic behaviour of the weather results in a lot of uncertainty – the bane of the investing world. All things considered, few income stocks can boast of their ability to maintain double-digit dividend yields. However, the lack of projected growth does give me pause. Even more so when considering other renewable energy firms like Greencoat UK Wind are preparing to ramp up their dividend rather than keep it stable. With that in mind, I'm personally not rushing to buy. But that doesn't mean the stock isn't worthy of a closer look from opportunistic income investors. The post An 11.5% yield?! Here's the dividend forecast for a hot income stock appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Globe and Mail
10-07-2025
- Business
- Globe and Mail
Yielding 6.3%, Is Verizon a Better Dividend Stock to Buy? Or Should You Buy AT&T Stock Instead?
Passive income investors are attracted to the robust dividend yields of Verizon (NYSE: VZ) and AT&T (NYSE: T). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » *Stock prices used were the afternoon prices of July 7, 2025. The video was published on July 9, 2025. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,048%* — a market-crushing outperformance compared to 179% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of July 7, 2025 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Forbes
21-03-2025
- Business
- Forbes
Shell's Cash Flow Increases The Safety Of Its Dividend Yield
stack of silver coins with trading chart in financial concepts and financial investment business ... [+] stock growth Tariffs have been a hot topic since President Trump started his second term, and many investors are worried about the long-term consequences. On the surface it's a simple idea, if we tax foreign imports, we will strengthen our own industries by creating more jobs and generating more cash. But, it doesn't always work so simply. When president Trump instituted tariffs on foreign steel in order to protect U.S. blue collar jobs in 2018, researchers estimate U.S steel producers added about 1,000 new jobs. However, the knock-on effects, namely input costs for U.S. industries that use steel, resulted in an estimated 75,000 fewer manufacturing jobs. The ongoing tariffs, and the uncertainty surrounding additional tariffs, will continue to stoke market volatility. Finding strong businesses with cheap valuations is hard enough, and new trade policies and tariffs only make that job more difficult. That's where New Constructs steps in. Even in volatile markets, my team scours the entire market to find the best investment opportunities. Diligence matters, now more than ever, especially in a new Golden Era of Investing. Today's free stock pick provides a summary of how I pick stocks for the Safest Dividend Yields Model Portfolio. This Model Portfolio only includes stocks that earn an attractive or very attractive rating, have positive free cash flow and economic earnings, and offer a dividend yield greater than 3%. Companies with strong free cash flow (FCF) provide higher quality and safer dividend yields because strong FCF is proof they have the cash to support the dividend. I think this portfolio provides a uniquely well-screened group of stocks that can help clients outperform. Shell, PLC (SHEL) is the featured stock in our Safest Dividend Yields Model Portfolio. Shell has grown revenue and net operating profit after tax (NOPAT) by 1% and 14% compounded annually, respectively, since 2015. The company's NOPAT margin improved from 3% in 2015 to 9% in the TTM, while invested capital turns remained the same at 0.8 over the same time. Rising NOPAT margins drive the company's return on invested capital (ROIC) from 3% in 2015 to 8% in the TTM. Figure 1: Shell's Revenue & NOPAT Since 2015 SHEL Revenue & NOPAT 2015-TTM Shell has increased its regular dividend from $0.32/share in 2Q20 to $0.72/share in 1Q25. The current quarterly dividend, when annualized provides a 4.2% dividend yield. The company's free cash flow (FCF) easily exceeds its regular dividend payments. From 2020 through 3Q24, the company generated $145.7 billion (53% of current enterprise value) in FCF while paying $36 billion in regular dividends. See Figure 2. Figure 2: Shell's FCF Vs. Regular Dividends Since 2020 SHEL Free Cash Flow & Dividends As Figure 2 shows, this company's dividends are backed by a history of reliable cash flows. Dividends from companies with low or negative FCF are less dependable since the company would not be able to sustain paying dividends. At its current price of $67/share, this stock has a price-to-economic book value (PEBV) ratio of 0.5. This ratio means the market expects the company's NOPAT to permanently fall 50% from TTM levels. This expectation seems overly pessimistic given that the company has grown NOPAT 14% compounded annually over the last eight years and 3% compounded annually over the past decade. Even if the company's: the stock would be worth $91/share today – a 36% upside. In this scenario, the company's NOPAT would actually fall 3% compounded annually through 2033. Should the company's NOPAT grow more in line with historical growth rates, the stock has even more upside. Below are specifics on the adjustments I make based on Robo-Analyst findings in this featured stock's 20-F and 6-Ks: Income Statement: I made nearly $22 billion in adjustments with a net effect of removing just under $9 billion in non-operating expenses. Balance Sheet: I made around $127 billion in adjustments to calculate invested capital with a net increase of over $56 billion. The most notable adjustment was for asset write downs. Valuation: I made over $118 billion in adjustments to shareholder value, with a net decrease of around $52 billion. Other than total debt, the most notable adjustment to shareholder value was for excess cash. Disclosure: David Trainer, Kyle Guske II, and Hakan Salt receive no compensation to write about any specific stock, style, or theme.
