Wed., September 27th, 2023 | MarketBeat Staff
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 - Blue Owl Capital (NYSE:OWL)
- Dividend Yield
- 4.4%
- Annual Dividend Payout
- $0.56
- Earnings Per Share
- $0.04
- Payout Ratio
- 1,400.4%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $14.66 (15.0% Upside)
About Blue Owl Capital
Blue Owl Capital Inc operates as an asset manager. It offers permanent capital base solutions that enables it to offer a holistic platform to middle market companies, large alternative asset managers, and corporate real estate owners and tenants. The company provides direct lending products that offer private credit products comprising diversified, technology, first lien, and opportunistic lending to middle-market companies; GP capital solutions products, which offers capital solutions, including GP minority equity investments, GP debt financing, and professional sports minority investments to large private capital managers; and real estate products that focuses on structuring sale-leaseback transactions, which includes triple net leases.
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- Dividend Yield
- 4.24%
- Annual Dividend Payout
- $1.80
- Earnings Per Share
- $0.19
- Payout Ratio
- 947.4%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $51.08 (22.4% Upside)
About Ventas
Ventas Inc, an S&P 500 company, operates at the intersection of two large and dynamic industries healthcare and real estate. Fueled by powerful demographic demand from growth in the aging population, Ventas owns or has investments in a highly diversified portfolio of approximately 1,400 properties in the United States, Canada, and the United Kingdom.
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#3 - Brookfield Infrastructure Partners (NYSE:BIP)
- Dividend Yield
- 4.88%
- Annual Dividend Payout
- $1.53
- Earnings Per Share
- $0.33
- Payout Ratio
- 463.6%
- Consensus Rating
- Buy
- Consensus Price Target
- $42.86 (43.4% Upside)
About Brookfield Infrastructure Partners
Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, midstream, and data businesses in North and South America, Europe, and the Asia Pacific. The company's Utilities segment operates approximately 60,000 kilometers (km) of operational electricity transmission and distribution lines; 2,900 km of electricity transmission lines; 4,200 km of natural gas pipelines; 7.8 million electricity and natural gas connections; and 540,000 long-term contracted sub-metering services.
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- Dividend Yield
- 3.63%
- Annual Dividend Payout
- $4.80
- Earnings Per Share
- $1.19
- Payout Ratio
- 403.4%
- Consensus Rating
- Reduce
- Consensus Price Target
- $147.64 (13.9% Upside)
About Clorox
The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex, and Formula 409 brands; professional cleaning and disinfecting products under the CloroxPro and Clorox Healthcare brands; professional food service products under the Hidden Valley brand; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light brands in the United States.
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- Dividend Yield
- 6.97%
- Annual Dividend Payout
- $1.20
- Earnings Per Share
- $0.30
- Payout Ratio
- 400.0%
- Consensus Rating
- Hold
- Consensus Price Target
- $25.74 (50.8% Upside)
About V.F.
V.F. Corporation, together with its subsidiaries, engages in the design, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and related products for men, women, and children in the Americas, Europe, and the Asia-Pacific. It operates through three segments: Outdoor, Active, and Work.
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#6 - TC Energy (NYSE:TRP)
- Dividend Yield
- 7.71%
- Annual Dividend Payout
- $2.81
- Earnings Per Share
- $0.72
- Payout Ratio
- 390.3%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $59.78 (65.7% Upside)
About TC Energy
TC Energy Corporation operates as an energy infrastructure company in North America. It operates through five segments: Canadian Natural Gas Pipelines; U.S. Natural Gas Pipelines; Mexico Natural Gas Pipelines; Liquids Pipelines; and Power and Energy Solutions. The company builds and operates a network of 93,700 kilometers of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses.
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#7 - Digital Realty Trust (NYSE:DLR)
- Dividend Yield
- 3.95%
- Annual Dividend Payout
- $4.88
- Earnings Per Share
- $1.29
- Payout Ratio
- 378.3%
- Consensus Rating
- Hold
- Consensus Price Target
- $121.50 (3.7% Upside)
About Digital Realty Trust
Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation, and interconnection solutions. PlatformDIGITAL, the company's global data center platform, provides customers with a secure data "meeting place" and a proven Pervasive Datacenter Architecture (PDx) solution methodology for powering innovation and efficiently managing Data Gravity challenges.
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#8 - 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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#9 - International Business Machines (NYSE:IBM)
- Dividend Yield
- 4.53%
- Annual Dividend Payout
- $6.64
- Earnings Per Share
- $2.16
- Payout Ratio
- 307.4%
- Consensus Rating
- Hold
- Consensus Price Target
- $146.67 (2.8% Upside)
About International Business Machines
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through four business segments: Software, Consulting, Infrastructure, and Financing. The Software segment offers hybrid cloud platform and software solutions; software for business automation, AIOps and management, integration, and application servers; data and artificial intelligence solutions; and security software and services for threat, data, and identity.
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#10 - American Tower (NYSE:AMT)
- Dividend Yield
- 3.79%
- Annual Dividend Payout
- $6.28
- Earnings Per Share
- $2.07
- Payout Ratio
- 303.4%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $238.80 (50.0% Upside)
About American Tower
American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of nearly 226,000 communications sites and a highly interconnected footprint of U.S. data center facilities.
#11 - Omega Healthcare Investors (NYSE:OHI)
- Dividend Yield
- 7.95%
- Annual Dividend Payout
- $2.68
- Earnings Per Share
- $1.02
- Payout Ratio
- 262.7%
- Consensus Rating
- Hold
- Consensus Price Target
- $32.21 (2.9% Downside)
About Omega Healthcare Investors
Omega is a REIT that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the U.S., as well as in the U.K.
#12 - FS KKR Capital (NYSE:FSK)
- Dividend Yield
- 12.81%
- Annual Dividend Payout
- $2.56
- Earnings Per Share
- $1.01
- Payout Ratio
- 253.5%
- Consensus Rating
- Hold
- Consensus Price Target
- $20.92 (5.5% Upside)
About FS KKR Capital
FS KKR Capital Corp. is a business development company specializing in investments in debt securities. It provides customized credit solutions to private middle market U.S. companies. It invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market U.S.
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#13 - 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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#14 - Realty Income (NYSE:O)
- Dividend Yield
- 5.99%
- Annual Dividend Payout
- $3.07
- Earnings Per Share
- $1.34
- Payout Ratio
- 229.1%
- Consensus Rating
- Hold
- Consensus Price Target
- $67.34 (34.9% 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 13,100 real estate properties primarily owned under long-term net lease agreements with commercial clients.
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#15 - Duke Energy (NYSE:DUK)
- Dividend Yield
- 4.39%
- Annual Dividend Payout
- $4.10
- Earnings Per Share
- $1.79
- Payout Ratio
- 229.1%
- Consensus Rating
- Hold
- Consensus Price Target
- $100.17 (11.3% Upside)
About Duke Energy
Duke Energy Corporation, together with its subsidiaries, operates as an energy company in the United States. It operates through two segments, Electric Utilities and Infrastructure (EU&I) and Gas Utilities and Infrastructure (GU&I). The EU&I segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest; and uses coal, hydroelectric, natural gas, oil, solar and wind sources, renewables, and nuclear fuel to generate electricity.
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#16 - Tyson Foods (NYSE:TSN)
- Dividend Yield
- 3.79%
- Annual Dividend Payout
- $1.92
- Earnings Per Share
- $0.92
- Payout Ratio
- 208.7%
- Consensus Rating
- Reduce
- Consensus Price Target
- $55.00 (8.6% Upside)
About Tyson Foods
Tyson Foods, Inc, together with its subsidiaries, operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken, and Prepared Foods. The company processes live fed cattle and live market hogs; fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, as well as case ready beef and pork, and fully cooked meats; raises and processes chickens into fresh, frozen, and value-added chicken products, including breaded chicken strips, nuggets, patties, and other ready-to-fix or fully cooked chicken parts; and supplies poultry breeding stock.
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#17 - Camden Property Trust (NYSE:CPT)
- Dividend Yield
- 4.09%
- Annual Dividend Payout
- $4.00
- Earnings Per Share
- $1.92
- Payout Ratio
- 208.3%
- Consensus Rating
- Hold
- Consensus Price Target
- $127.44 (33.4% 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 58,961 apartment homes across the United States.
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#18 - Sun Communities (NYSE:SUI)
- Dividend Yield
- 3.02%
- Annual Dividend Payout
- $3.72
- Earnings Per Share
- $1.84
- Payout Ratio
- 202.2%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $153.44 (28.7% 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 June 30, 2023, the Company owned, operated, or had an interest in a portfolio of 671 developed MH, RV and Marina properties comprising approximately 180,060 developed sites and approximately 48,180 wet slips and dry storage spaces in the U.S., the UK and Canada.
#19 - Iron Mountain (NYSE:IRM)
- Dividend Yield
- 4.24%
- Annual Dividend Payout
- $2.60
- Earnings Per Share
- $1.30
- Payout Ratio
- 200.0%
- Consensus Rating
- Buy
- Consensus Price Target
- $65.75 (10.4% Upside)
About Iron Mountain
Iron Mountain Incorporated (NYSE: IRM) is a global leader in innovative storage, data center infrastructure, asset lifecycle management and information management services. Founded in 1951 and trusted by more than 225,000 customers worldwide, Iron Mountain helps customers CLIMB HIGHER to transform their businesses.
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#20 - FirstEnergy (NYSE:FE)
- Dividend Yield
- 4.34%
- Annual Dividend Payout
- $1.56
- Earnings Per Share
- $0.79
- Payout Ratio
- 197.5%
- Consensus Rating
- Hold
- Consensus Price Target
- $41.50 (17.2% Upside)
About FirstEnergy
FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities.
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