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Yahoo
10 hours ago
- Business
- Yahoo
Why I Can't Stop Buying These 2 Top High-Yield Dividend Stocks
PepsiCo has increased its dividend for 53 straight years. Vici Properties has grown its payout at an above-average rate since its formation. These companies can provide me with high-yielding and steadily rising passive income streams. 10 stocks we like better than PepsiCo › I'm on a mission to become financially independent through passive income. My strategy is to continually invest in income-generating assets to steadily grow my passive income to the point where it can cover my basic living expenses. Investing in high-yielding dividend stocks is a core aspect of my strategy. I buy more shares of top high-yielding dividend stocks any chance I get. Two high-yield dividend stocks that I just can't stop buying this year are PepsiCo (NASDAQ: PEP) and Vici Properties (NYSE: VICI). Here's why I think they are two of the top options to buy for passive income these days. PepsiCo's dividend yield is approaching 4.5% because of a big slump in its stock price this year. That's a very attractive level for the food and beverage giant. It's about three times higher than the S&P 500 at less than 1.5% and its highest level this decade. The company has a sparkling record of paying dividends. PepsiCo recently raised its dividend by another 5%, extending its growth streak to 53 straight years. That qualifies it as an elite Dividend King. The company has grown its payout at an impressive 7.5% compound annual rate over the past 15 years. PepsiCo's leading portfolio of consumer brands generates lots of cash flow. That gives it the money to invest in growing its business and pay an attractive and rising dividend. The company is investing heavily in things such as product innovation, manufacturing capacity expansions, and productivity enhancements to organically grow its revenue and margin. PepsiCo expects these investments will increase its revenue at a 4%-6% annual rate while boosting its earnings per share at a high-single-digit rate. The company also has a strong balance sheet, which gives it the flexibility to make acquisitions as opportunities arise. It has made several deals in recent years to accelerate the transformation of its portfolio to healthier options, including healthier-soda maker Poppi, fresh dips and spreads brands Sabra and Obela, and authentic, better-for-you food product maker Siete. These acquisitions will enhance its long-term growth, putting PepsiCo in a stronger position to continue increasing its high-yielding dividend. Vici Properties' dividend yield is over 5%. The real estate investment trust (REIT) backs that payout with a steady and growing rental income stream. The REIT owns one of the largest portfolios of market-leading gaming, hospitality, entertainment, wellness, and leisure destinations. It owns 54 gaming properties, including Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas. Vici also owns 39 other experiential properties and has invested in several real estate-backed loans. Vici leases its owned properties to tenants that operate the facilities under long-term triple net leases (NNN). An increasing percentage of its leases escalate rents at rates tied to inflation. Forty-two percent of them do this year, and that number will rise to 90% by 2035. As a result, Vici collects very stable and steadily increasing rental income. The REIT pays out about 75% of its cash flow in dividends, retaining the rest to invest in new income-generating experiential real estate. Vici Properties also has an investment-grade balance sheet, giving it additional financial flexibility to make new investments. The company's most recent investments were a $300 million mezzanine loan to support the development of One Beverly Hill, a landmark luxury mixed-use development, and up to $510 million of development funds to build the North Fork Mono Casino & Resort. Vici Properties' growing portfolio enables the REIT to steadily increase its high-yielding dividend. It has raised its payment in all seven years since its formation. It has grown its payout at a 7.4% compound annual rate, which leads its NNN REIT peers with a 2.3% compound average dividend growth rate during that period. PepsiCo and Vici Properties are great stocks to buy for passive income. They pay high-yielding dividends backed by strong financial profiles. They also have excellent records of growing their dividends, which should continue. That's why I recently bought more shares of this duo and probably won't stop adding to my positions anytime soon. Before you buy stock in PepsiCo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and PepsiCo 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 $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Matt DiLallo has positions in PepsiCo and Vici Properties. The Motley Fool recommends Vici Properties. The Motley Fool has a disclosure policy. Why I Can't Stop Buying These 2 Top High-Yield Dividend Stocks was originally published by The Motley Fool
Yahoo
7 days ago
- Business
- Yahoo
Want $2,000 in Annual Dividends? Invest $11,000 in Each of These 3 Stocks
The three stocks listed here each pay high dividends that yield more than 5%. Their dividend payments look to be safe and sustainable for the foreseeable future. These stocks cover different industries and can provide you with some excellent diversification. 10 stocks we like better than Verizon Communications › Generating high dividend income can be tricky, because you don't want to just load up on stocks with the highest yields. That can result in disappointment later on, because if those high dividend payments aren't safe, they could end up getting cut or suspended entirely. It's important to carefully consider a company's financials and what lies ahead before relying on its dividend. Verizon Communications (NYSE: VZ), United Parcel Service (NYSE: UPS), and Vici Properties (NYSE: VICI) all pay dividends that yield more than 5% today, and they all look fairly safe. By investing $11,000 in each one of these high-yielding stocks, you could generate around $2,000 in dividends over the course of a full year. Here's why these can be excellent income stocks to buy right now. One of the most underrated dividend stocks available today is Verizon. The stock struggles to generate much momentum, even though its payout looks remarkably safe. Over the past 12 months, shares of Verizon are only up around 7%. But when you consider that its 6.4% yield is safer than it looks, it should be attracting a lot more interest from dividend investors. Verizon's payout ratio is a sustainable 64% of its earnings. The company has also increased its dividend for 18 consecutive years. In 10 years, the company's quarterly per-share dividend has gone from $0.55 to $0.6775 -- that's an increase of 23%. By investing $11,000 into this top telecom stock, you'd be generating approximately $704 in annual dividends, based on its current yield, and there's a strong possibility that the payout will rise over time. This year, the company projects to generate free cash flow of at least $17.5 billion, which will be comfortably higher than how much it pays out in dividends over an entire year (around $11.3 billion). At just 10 times its trailing earnings, this can be a terrific dividend stock to add to your portfolio right now. Logistics giant United Parcel Service, better known as UPS, offers a slightly higher yield than Verizon at 6.5%. If you invest $11,000 into the stock, you can also expect to generate a little more in annual dividends -- $715. Share prices of UPS are down by 20% since the start of the year (returns as of June 16), and that has pushed its yield higher, making this an attractive time to load up on the stock. Its payout ratio is around 100%, and it has generated $5.4 billion in free cash flow over the past 12 months, which is about as much as its dividend payments have totaled over that timeframe. Although that seems tight, the company is making efforts to cut costs to improve its bottom line. Earlier this year, it announced plans to lay off 20,000 workers amid challenging macroeconomic conditions and uncertainty. UPS' business has remained fairly stable thus far, however, with revenue through the first three months of the year totaling $21.5 billion, versus $21.7 billion in the prior-year period. The stock trades at around 15 times its trailing earnings, which is a bit cheaper than normal, and gives you some margin of safety in the event that it doesn't perform as well as you might expect. There is some risk here, but with the dividend still sustainable now and cost reductions in place, UPS should be able to continue making dividend payments for the foreseeable future. The lowest-yielding stock on this list is Vici Properties, a real estate investment trust (REIT) that currently pays investors a dividend that yields 5.4%. An $11,000 investment in this stock would produce annual dividend income totaling roughly $594. When you add that to the income you could generate from the other stocks listed above, then your total dividend income from all three of these stocks (when investing $11,000 in each of them) would total around $2,013. For REITs, the key metric to focus on is funds from operations, or FFO. That's an adjusted earnings calculation that helps these companies determine how much they can afford to pay out in dividends. For the first three months of 2025, Vici's FFO per share totaled $0.51. That is higher than its current quarterly dividend of $0.4325, suggesting that the payout is safe. REITs can be safe income-generating investments to own, since they bring in a lot of recurring income from their tenants. Vici's portfolio includes top gaming destinations such as Caesars Palace in Las Vegas and the Venetian Resort. Even if the economy struggles, the REIT's robust portfolio, which centers on some of the biggest resorts in the world, should offer you some safety. Vici is another fairly modestly priced stock to own, as it trades at 13 times its trailing earnings. Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Verizon Communications 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 $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends United Parcel Service. The Motley Fool recommends Verizon Communications and Vici Properties. The Motley Fool has a disclosure policy. Want $2,000 in Annual Dividends? Invest $11,000 in Each of These 3 Stocks was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Want $2,000 in Annual Dividends? Invest $11,000 in Each of These 3 Stocks
The three stocks listed here each pay high dividends that yield more than 5%. Their dividend payments look to be safe and sustainable for the foreseeable future. These stocks cover different industries and can provide you with some excellent diversification. 10 stocks we like better than Verizon Communications › Generating high dividend income can be tricky, because you don't want to just load up on stocks with the highest yields. That can result in disappointment later on, because if those high dividend payments aren't safe, they could end up getting cut or suspended entirely. It's important to carefully consider a company's financials and what lies ahead before relying on its dividend. Verizon Communications (NYSE: VZ), United Parcel Service (NYSE: UPS), and Vici Properties (NYSE: VICI) all pay dividends that yield more than 5% today, and they all look fairly safe. By investing $11,000 in each one of these high-yielding stocks, you could generate around $2,000 in dividends over the course of a full year. Here's why these can be excellent income stocks to buy right now. One of the most underrated dividend stocks available today is Verizon. The stock struggles to generate much momentum, even though its payout looks remarkably safe. Over the past 12 months, shares of Verizon are only up around 7%. But when you consider that its 6.4% yield is safer than it looks, it should be attracting a lot more interest from dividend investors. Verizon's payout ratio is a sustainable 64% of its earnings. The company has also increased its dividend for 18 consecutive years. In 10 years, the company's quarterly per-share dividend has gone from $0.55 to $0.6775 -- that's an increase of 23%. By investing $11,000 into this top telecom stock, you'd be generating approximately $704 in annual dividends, based on its current yield, and there's a strong possibility that the payout will rise over time. This year, the company projects to generate free cash flow of at least $17.5 billion, which will be comfortably higher than how much it pays out in dividends over an entire year (around $11.3 billion). At just 10 times its trailing earnings, this can be a terrific dividend stock to add to your portfolio right now. Logistics giant United Parcel Service, better known as UPS, offers a slightly higher yield than Verizon at 6.5%. If you invest $11,000 into the stock, you can also expect to generate a little more in annual dividends -- $715. Share prices of UPS are down by 20% since the start of the year (returns as of June 16), and that has pushed its yield higher, making this an attractive time to load up on the stock. Its payout ratio is around 100%, and it has generated $5.4 billion in free cash flow over the past 12 months, which is about as much as its dividend payments have totaled over that timeframe. Although that seems tight, the company is making efforts to cut costs to improve its bottom line. Earlier this year, it announced plans to lay off 20,000 workers amid challenging macroeconomic conditions and uncertainty. UPS' business has remained fairly stable thus far, however, with revenue through the first three months of the year totaling $21.5 billion, versus $21.7 billion in the prior-year period. The stock trades at around 15 times its trailing earnings, which is a bit cheaper than normal, and gives you some margin of safety in the event that it doesn't perform as well as you might expect. There is some risk here, but with the dividend still sustainable now and cost reductions in place, UPS should be able to continue making dividend payments for the foreseeable future. The lowest-yielding stock on this list is Vici Properties, a real estate investment trust (REIT) that currently pays investors a dividend that yields 5.4%. An $11,000 investment in this stock would produce annual dividend income totaling roughly $594. When you add that to the income you could generate from the other stocks listed above, then your total dividend income from all three of these stocks (when investing $11,000 in each of them) would total around $2,013. For REITs, the key metric to focus on is funds from operations, or FFO. That's an adjusted earnings calculation that helps these companies determine how much they can afford to pay out in dividends. For the first three months of 2025, Vici's FFO per share totaled $0.51. That is higher than its current quarterly dividend of $0.4325, suggesting that the payout is safe. REITs can be safe income-generating investments to own, since they bring in a lot of recurring income from their tenants. Vici's portfolio includes top gaming destinations such as Caesars Palace in Las Vegas and the Venetian Resort. Even if the economy struggles, the REIT's robust portfolio, which centers on some of the biggest resorts in the world, should offer you some safety. Vici is another fairly modestly priced stock to own, as it trades at 13 times its trailing earnings. Before you buy stock in Verizon Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Verizon Communications 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 $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends United Parcel Service. The Motley Fool recommends Verizon Communications and Vici Properties. The Motley Fool has a disclosure policy. Want $2,000 in Annual Dividends? Invest $11,000 in Each of These 3 Stocks was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-05-2025
- Business
- Yahoo
This 5.5%-Yielding Dividend Stock's Smart Strategy Continues to Drive Growth
Vici Properties partners with leading operators of experiences. That strategy drives steady growth as it completes new investments with existing partners. The REIT routinely brings on new partners. Vici Properties (NYSE: VICI) has grown faster than its peers over the years. The real estate investment trust (REIT) has raised its dividend payment at a 7% compound annual rate since its formation more than seven years ago. That's well above the 2% average annual growth rate of other REITs focused on investing in triple net (NNN) real estate. Its focus on establishing strategic partnerships is a key factor driving its ability to deliver above-average growth. That smart strategy continues to provide the REIT with new opportunities to expand its portfolio, which allows it to increase its cash flow and dividend. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Vici Properties focuses on investing in experiential real estate like gaming, hospitality, wellness, entertainment, and leisure destinations. Unlike many real estate investors, Vici Properties sees itself as less of a landlord and more of a partner to companies that need capital to expand their businesses. The company takes "pride in our ability to build deep relationships with dynamic growth-minded operators that will help to contribute to our long-term growth goals and objectives," commented CEO Edward Pitoniak in the first-quarter earnings press release. The REIT has several long-standing partnerships with leading operators of experiences. For example, it owns 18 casinos leased to Caesars Entertainment and 13 leased to MGM Resorts. It also owns 38 bowling entertainment centers leased to Lucky Strike. Meanwhile, the company has made real estate-backed loans to Great Wolf Lodge, Canyon Ranch, Cabot, and others. These are two-way partnerships. The operating tenants pay rent to use properties owned by Vici Properties that are crucial to their businesses. They generate revenue from these facilities while paying the REIT steadily rising rental income. Another aspect of these partnerships is that Vici Properties will provide tenants with additional capital to help fund their continued expansion. The capital can come via sale-leaseback transactions, loans to finance new development projects, or growth capital to fund expansions and other capital projects at existing properties. These win-win partnerships provide the REIT with new investment opportunities to grow its businesses while supporting the expansion of its existing tenants. For example, last year, the company originated a $250 million mezzanine loan backed by a portfolio of nine Great Wolf Lodge resorts. Since starting their partnership in 2021, Vici Properties has provided over $720 million of capital to Great Wolf to support its growth. The REIT also provided up to $700 million of financing for The Venetian Las Vegas through its partner property growth fund strategy to support hotel room renovations and other projects at that property. In exchange, the REIT will receive more rental income from its investment in that iconic casino. Vici Properties is always looking to partner with leading operators of experiences. The REIT has established two new strategic relationships this year, which will provide new sources of growth. The first partnership is with Cain International and its affiliate, Eldridge Industries. They plan to collaborate to identify and pursue unique experiential real estate investment opportunities. The first one will see Vici make a $300 million mezzanine loan investment to help fund the development of One Beverly Hills, a landmark luxury mixed-use development featuring an all-suite hotel, a carefully curated selection of luxury retail and dining locations, and over 10 acres of botanical gardens. Meanwhile, its newest partnership is with Red Rock Resorts, a premier regional gaming operator. The REIT has agreed to provide up to $510 million in funding for developing a tribal casino in central California that Red Rock will develop and manage. The partnership is Red Rock's first with a REIT and could lead to future investment opportunities for Vici. The company's success in adding new partners is driving additional growth this year. That gave Vici Properties the confidence to raise its guidance for adjusted funds from operations (FFO). It now expects its adjusted FFO to rise to a range of $2.33-$2.36 per share (up from its initial forecast of $2.32-$2.35 per share). As a result, it now sees its adjusted FFO growing by 4.4% at the high end of its new guidance range. Add that to the REIT's 5.5%-yielding dividend, and its total return could approach 10% if its stock price rises with its earnings growth rate. Meanwhile, the company's growing earnings should allow it to continue increasing its dividend at an above-average rate. Vici Properties' strategy of partnering with leading operators of experiences continues to pay dividends for investors. It steadily provides the company with rising rental income and new investment opportunities. Adding new partners enhances its ability to grow its portfolio and shareholder value. It's a winning strategy that makes Vici Properties a great stock to buy and hold for a growing stream of passive income. Before you buy stock in Vici Properties, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vici Properties 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 $610,327!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $667,581!* Now, it's worth noting Stock Advisor's total average return is 882% — a market-crushing outperformance compared to 161% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Matt DiLallo has positions in Vici Properties. The Motley Fool recommends Red Rock Resorts and Vici Properties. The Motley Fool has a disclosure policy. This 5.5%-Yielding Dividend Stock's Smart Strategy Continues to Drive Growth was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
3 No-Brainer High-Yield REIT Stocks to Buy Right Now
The average real estate investment trust (REIT) has a yield of around 4%. You can do much better than that with investments in Realty Income (NYSE: O), Vici Properties (NYSE: VICI), and Rexford Industrial (NYSE: REXR). The risk rises with each of these companies, but so does the potential for dividend growth. Here's a quick look at why it could be a no-brainer decision to buy each one right now. Of these three REITs, Realty Income is by far the least exciting. It owns single-tenant properties for which the tenant is responsible for most property-level expenses (also known as a net lease). Around 75% of its rents come from retail assets, which tend to be very similar and, thus, easy to buy, sell, and release as needed. With over 15,600 properties spread across the United States and Europe, there's a lot of diversification in the portfolio. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Size, however, is both a benefit and a problem here. While Realty Income's scale is a key factor in its reliability (it has increased its dividend annually for three decades), it also means that slow growth is the norm. The well-above-REIT-average yield of 5.6% is partly a function of this fact. However, if dividend consistency is important to you, it's hard to beat this boring REIT. As an added bonus, Realty pays out the dividend monthly; so it's almost like a paycheck replacement for those who are retired. Suggesting that a casino business is low-risk should seem like an odd statement. Indeed, casino operators tend to see their financial performance track along with economic swings. But Vici Properties owns casinos -- it doesn't operate them. Casino operators need to have access to the casino property they occupy if they want to remain in business. Thus, paying the rent is a top priority. The proof of that is that Vici Properties sailed through the coronavirus pandemic period, actually increasing its dividend, despite the fact that casinos were shut down because they were deemed non-essential businesses. To be fair, Vici Properties is higher-risk than Realty Income. But there's an offset. While Realty Income's dividend has grown at a roughly 4% annualized rate over time, Vici Properties' dividend has been expanding at around 7% a year, on average. So while the buying power of Realty Income's dividend has kept pace with inflation, the buying power of Vici Properties' dividend has increased notably, and Vici Properties' yield is a still-attractive 5.4%. Given the current state of geopolitics and tariffs, investors might be a little leery of a warehouse landlord. The concern will probably increase for a warehouse owner that is focused on just one region. This is, in a nutshell, the description of Rexford Industrial, which only owns warehouses in Southern California. The negative view of the business has pushed the yield up to a historically high 5.2%. That's an opportunity for investors who think long term. Southern California is one of the largest warehouse markets in the world. It has a long history of being supply constrained, and it's a vital gateway from Asia into the United States, which remains true despite the current tariff kerfuffle. As one of the largest players in the area and a public REIT, Rexford can be more aggressive with its acquisitions. The REIT has strong redevelopment skills, as well, allowing it to buy older assets and upgrade them so it can charge more rent. What's most exciting about Rexford is that its regional focus and business skill set have resulted in over a decade of dividend growth, with an annualized dividend growth rate of more than 10% a year over the past 10 years. There's more risk here, but there's also more dividend growth reward. For conservative investors, Realty Income will probably be the dividend stock of choice here. Those willing to take on a little more risk to get more rapid dividend growth will probably prefer Vici Properties and its casino tenants. Dividend investors who are willing to take a contrarian stance should look at Rexford Industrial and its rapidly expanding dividend. All three have above-industry-average yields and strong businesses backing the income streams they provide to their shareholders. Before you buy stock in Realty Income, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Reuben Gregg Brewer has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Vici Properties. The Motley Fool has a disclosure policy. 3 No-Brainer High-Yield REIT Stocks to Buy Right Now was originally published by The Motley Fool
