Almost everyone loves a company that pays strong dividends. Who doesn't like receiving a check every quarter for simply owning a stock--especially if that stock is paying you back 4%, 5% or even 10% of its share price in annual income each year? In a world where 10-year treasuries are yielding 3%-4% it seems hard to go wrong when buying a stock that's yielding significantly above the going rates on fixed-income assets. Unfortunately, the market rarely offers a free lunch.
While high-yield stocks may have a lot of near-term attractiveness, those same high-yields can often signal significant danger ahead. In some cases, it might mean that the company's dividend will stop growing or won't grow as fast as it used to. Worse yet, the company could cut its dividend, reduce the income you receive from owning the stock and drive down the value of the shares that you own.
5% plus yields might seem like an easy opportunity to boost the investment income you receive, but high-yield stocks can just as often be a trap waiting to snare unsuspecting investors. It's not always easy to tell the difference though.
This slideshow highlights 20 high-yield dividend stocks that are paying an unsustainably large percentage of their earnings in the form of a dividend. These companies are all paying out more than 100% of their earnings per share in the form of a dividend, a sign that the advertised high-yield probably won't last.
#1 - Iron Mountain (NYSE:IRM)
- Dividend Yield
- 3.18%
- Annual Dividend Payout
- $3.14
- Earnings Per Share
- $0.41
- Payout Ratio
- 765.9%
- Consensus Rating
- Buy
- Consensus Price Target
- $121.71 (18.4% Upside)
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM) is a global leader in information management services. Founded in 1951 and trusted by more than 240,000 customers worldwide, Iron Mountain serves to protect and elevate the power of our customers' work. Through a range of offerings including digital transformation, data centers, secure records storage, information management, asset lifecycle management, secure destruction and art storage and logistics, Iron Mountain helps businesses bring light to their dark data, enabling customers to unlock value and intelligence from their stored digital and physical assets at speed and with security, while helping them meet their environmental goals.
- Dividend Yield
- 10.08%
- Annual Dividend Payout
- $2.80
- Earnings Per Share
- $0.40
- Payout Ratio
- 700.0%
- Consensus Rating
- Hold
- Consensus Price Target
- $38.86 (36.9% Upside)
About DOW
Dow, Inc is a materials science company, which engages in the development of innovative solutions. It operates through the following segments: Packaging and Specialty Plastics, Industrial Intermediates and Infrastructure, and Performance Materials and Coatings. The Packaging and Specialty Plastics segment consists of hydrocarbons and energy and packaging and specialty plastics.
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#3 - Alexandria Real Estate Equities (NYSE:ARE)
- Dividend Yield
- 7.41%
- Annual Dividend Payout
- $5.28
- Earnings Per Share
- $0.76
- Payout Ratio
- 694.7%
- Consensus Rating
- Hold
- Consensus Price Target
- $116.00 (64.8% Upside)
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle.
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#4 - Blue Owl Capital (NYSE:OWL)
- Dividend Yield
- 4.85%
- Annual Dividend Payout
- $0.90
- Earnings Per Share
- $0.13
- Payout Ratio
- 692.3%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $23.40 (21.9% Upside)
About Blue Owl Capital
Blue Owl Capital Inc operates as an asset manager in the United States. The company offers permanent capital base solutions that enables it to offer holistic framework of capital solutions to middle market companies, large alternative asset managers, and corporate real estate owners and tenants. It also provides direct lending products that offer private credit products comprising diversified, technology, first lien, and opportunistic lending to middle-market companies; liquid credit; GP strategic capital products, which offers capital solutions, including GP minority stakes, GP debt financing, and professional sports minority stakes; and real estate products that focuses on acquiring triple net lease real estate by investment grade or creditworthy tenants.
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#5 - Sun Communities (NYSE:SUI)
- Dividend Yield
- 3.07%
- Annual Dividend Payout
- $3.76
- Earnings Per Share
- $0.62
- Payout Ratio
- 606.5%
- Consensus Rating
- Hold
- Consensus Price Target
- $139.09 (12.8% Upside)
About Sun Communities
Established in 1975, Sun Communities, Inc became a publicly owned corporation in December 1993. The Company is a fully integrated REIT listed on the New York Stock Exchange under the symbol: SUI. As of December 31, 2023, the Company owned, operated, or had an interest in a portfolio of 667 developed MH, RV and Marina properties comprising 179,310 developed sites and approximately 48,030 wet slips and dry storage spaces in the U.S., the UK and Canada.
- Dividend Yield
- 3.04%
- Annual Dividend Payout
- $1.92
- Earnings Per Share
- $0.33
- Payout Ratio
- 581.8%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $73.00 (15.2% Upside)
About Ventas
Ventas Inc (NYSE: VTR) is a leading S&P 500 real estate investment trust focused on delivering strong, sustainable shareholder returns by enabling exceptional environments that benefit a large and growing aging population. The Company's growth is fueled by its senior housing communities, which provide valuable services to residents and enable them to thrive in supported environments.
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- Dividend Yield
- 4.19%
- Annual Dividend Payout
- $1.72
- Earnings Per Share
- $0.35
- Payout Ratio
- 491.4%
- Consensus Rating
- Hold
- Consensus Price Target
- $46.44 (13.9% Upside)
About UDR
UDR, Inc (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate communities in targeted U.S.
More about UDR
- Dividend Yield
- 12.83%
- Annual Dividend Payout
- $1.21
- Earnings Per Share
- $0.26
- Payout Ratio
- 465.4%
- Consensus Rating
- Hold
- Consensus Price Target
- $38.67 (77.7% Upside)
About BCE
BCE Inc, a communications company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through two segments, Bell Communication and Technology Services, and Bell Media. The Bell Communication and Technology Services segment provides wireless products and services including mobile data and voice plans and devices; wireline products and services comprising data, including internet access, internet protocol television, cloud-based services, and business solutions, as well as voice, and other communication services and products; and satellite TV and connectivity services for residential, small and medium-sized business, government, and large enterprise customers.
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#9 - Camden Property Trust (NYSE:CPT)
- Dividend Yield
- 3.56%
- Annual Dividend Payout
- $4.20
- Earnings Per Share
- $1.09
- Payout Ratio
- 385.3%
- Consensus Rating
- Hold
- Consensus Price Target
- $129.78 (12.8% Upside)
About Camden Property Trust
Camden Property Trust, an S&P 500 Company, is a real estate company primarily engaged in the ownership, management, development, redevelopment, acquisition, and construction of multifamily apartment communities. Camden owns and operates 172 properties containing 58,250 apartment homes across the United States.
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#10 - AGNC Investment (NASDAQ:AGNC)
- Dividend Yield
- 16.11%
- Annual Dividend Payout
- $1.44
- Earnings Per Share
- $0.40
- Payout Ratio
- 360.0%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $9.75 (7.0% Upside)
About AGNC Investment
AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs).
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- Dividend Yield
- 7%
- Annual Dividend Payout
- $3.12
- Earnings Per Share
- $0.95
- Payout Ratio
- 328.4%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $56.56 (29.5% Upside)
About Kinetik
Kinetik Holdings Inc operates as a midstream company in the Texas Delaware Basin. It provides gathering, transportation, compression, processing, and treating services for companies that produce natural gas, natural gas liquids, crude oil, and water. The company is headquartered in Midland, Texas.
#12 - Healthcare Trust of America (NYSE:HTA)
- Dividend Yield
- 4.53%
- Annual Dividend Payout
- $1.33
- Earnings Per Share
- $0.42
- Payout Ratio
- 316.7%
- Consensus Rating
- N/A
About Healthcare Trust of America
Healthcare Trust of America, Inc (NYSE: HTA) is the largest dedicated owner and operator of MOBs in the United States, comprising approximately 25.1 million square feet of GLA, with $7.4 billion invested primarily in MOBs. HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations.
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#13 - Annaly Capital Management (NYSE:NLY)
- Dividend Yield
- 14.6%
- Annual Dividend Payout
- $2.80
- Earnings Per Share
- $0.89
- Payout Ratio
- 314.6%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $21.00 (10.6% Upside)
About Annaly Capital Management
Annaly Capital Management, Inc, a diversified capital manager, engages in mortgage finance. The company invests in agency mortgage-backed securities collateralized by residential mortgages; non-agency residential whole loans and securitized products within the residential and commercial markets; mortgage servicing rights; agency commercial mortgage-backed securities; to-be-announced forward contracts; residential mortgage loans; and agency or private label credit risk transfer securities.
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#14 - Jackson Financial (NYSE:JXN)
- Dividend Yield
- 3.87%
- Annual Dividend Payout
- $3.20
- Earnings Per Share
- $1.03
- Payout Ratio
- 310.7%
- Consensus Rating
- Hold
- Consensus Price Target
- $94.80 (14.1% Upside)
About Jackson Financial
Jackson Financial Inc, through its subsidiaries, provides suite of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The Retail Annuities segment offers various retirement income and savings products, including variable, fixed index, fixed, and payout annuities, as well as registered index-linked annuities and lifetime income solutions.
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#15 - Healthpeak Properties (NYSE:DOC)
- Dividend Yield
- 7.13%
- Annual Dividend Payout
- $1.22
- Earnings Per Share
- $0.40
- Payout Ratio
- 305.0%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $23.27 (35.4% Upside)
About Healthpeak Properties
Healthpeak Properties, Inc is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.
#16 - Realty Income (NYSE:O)
- Dividend Yield
- 5.72%
- Annual Dividend Payout
- $3.22
- Earnings Per Share
- $1.10
- Payout Ratio
- 292.7%
- Consensus Rating
- Hold
- Consensus Price Target
- $61.15 (9.6% Upside)
About Realty Income
Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust ("REIT"), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients.
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- Dividend Yield
- 3.53%
- Annual Dividend Payout
- $6.56
- Earnings Per Share
- $2.35
- Payout Ratio
- 279.1%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $212.19 (11.9% Upside)
About AbbVie
AbbVie Inc discovers, develops, manufactures, and sells pharmaceuticals worldwide. The company offers Humira, an injection for autoimmune and intestinal Behçet's diseases, and pyoderma gangrenosum; Skyrizi to treat moderate to severe plaque psoriasis, psoriatic disease, and Crohn's disease; Rinvoq to treat rheumatoid and psoriatic arthritis, ankylosing spondylitis, atopic dermatitis, axial spondyloarthropathy, ulcerative colitis, and Crohn's disease; Imbruvica for the treatment of adult patients with blood cancers; Epkinly to treat lymphoma; Elahere to treat cancer; and Venclexta/Venclyxto to treat blood cancers.
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#18 - EnLink Midstream (NYSE:ENLC)
- Dividend Yield
- 3.75%
- Annual Dividend Payout
- $0.53
- Earnings Per Share
- $0.21
- Payout Ratio
- 252.4%
- Consensus Rating
- Hold
- Consensus Price Target
- $15.33 (5.3% Upside)
About EnLink Midstream
EnLink Midstream, LLC provides midstream energy services in the United States. The company operates through Permian, Louisiana, Oklahoma, North Texas, and Corporate segments. It is involved in gathering, compressing, treating, processing, transporting, storing, and selling natural gas; fractionating, transporting, storing, and selling natural gas liquids; and gathering, transporting, stabilizing, storing, trans-loading, and selling crude oil and condensate, as well as providing brine disposal services.
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#19 - Takeda Pharmaceutical (NYSE:TAK)
- Dividend Yield
- 3.61%
- Annual Dividend Payout
- $0.53
- Earnings Per Share
- $0.22
- Payout Ratio
- 240.9%
- Consensus Rating
- Buy
About Takeda Pharmaceutical
Takeda Pharmaceutical Company Limited engages in the research, development, manufacture, marketing, and out-licensing of pharmaceutical products in Japan and internationally. It offers pharmaceutical products in the areas of gastroenterology, rare diseases, plasma derived therapies, immunology, oncology, and neuroscience.
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#20 - Fibria Celulose (NYSE:FBR)
- Dividend Yield
- 8.19%
- Annual Dividend Payout
- $1.41
- Earnings Per Share
- $0.61
- Payout Ratio
- 231.1%
- Consensus Rating
- N/A
About Fibria Celulose
Fibria Celulose SA produces, sells, and exports short fiber pulp in Brazil and internationally. It manufactures and sells bleached eucalyptus kraft pulp. The company has approximately 1,056,000 hectares of forest base in the states of São Paulo, Minas Gerais, Rio de Janeiro, Espírito Santo, Mato Grosso do Sul, and Bahia.
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