In a world of paltry 0.06% interest rates, these income stocks earn up to 10.2%

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In a world of paltry 0.06% interest rates, these income stocks earn up to 10.2%

Earning healthy passive income is not easy these days.

Despite fears about rates and inflation all over the news, the national average interest rate on savings accounts remains at a meager 0.06%.

And thanks to the massive bull run over the past few years, most dividend-paying stocks aren’t paying as much as they used to.

But you don’t have to go home empty-handed.

If you’re willing to look past the hottest stocks and trend indicators, you can find plenty of companies returning generous sums of money to shareholders.

Here are three dividend-paying stocks offering oversized payouts to investors.

One of them might be worth jumping with your spare currency.

Morgan Stanley (United States)

Morgan Stanley company sign

TK Kurikawa / Shutterstock

The financial sector has made a comeback after being hit hard by the pandemic. And the banks are rewarding shareholders with big “salary increases”.

Case in point: Financial giant Morgan Stanley announced a 100% increase in its quarterly dividend rate in June. It also plans to repurchase up to $ 12 billion of its own shares until June 2022.

In the third quarter of 2021, sales and net income increased by more than 25% compared to the previous year.

The investment bank currently has an annual dividend yield of 2.9%, higher than that offered by other large financial stocks like Bank of America (1.9%), Goldman Sachs (2.1%) and JPMorgan Chase (2.5%).

Granted, Morgan Stanley shares are trading at almost $ 100 each. But you can get a share of the bank using a popular stock trading app that allows you to buy fractional shares with as much money as you are willing to spend.

Verizon Communications (VZ)

Verizon store signage day exterior

Elliott Cowand Jr / Shutterstock

Moving up the returns ladder we have the telecommunications giant and the household name Verizon.

The company’s 4G LTE network covers 99% of the US population. It is also one of the first to deploy 5G in the country.

At the end of June, Verizon’s consumer segment had 94.6 million retail connections, of which 90.5 million were postpaid.

With customers paying Verizon each month, the company is able to provide a healthy stream of recurring dividends to investors.

Last month, Verizon increased its quarterly payout to 64 cents per share, which translates into an annual dividend yield of 5%.

Its big rival AT&T is reporting 8.1% even juicier at the time of this writing. But earlier this year, management hinted at a potential dividend cut.

The telecommunications sector has not been a market favorite over the past six months.

But if you hesitate to get started, some investment applications will give you a free share of Verizon or AT&T just for signing up.

Ellington Residential Mortgage REIT (EARN)

Happy family with kids bought a new home, excited kids, funny girl and boy holding boxes running around big modern house.

fizkes / Shutterstock

For dividend investors who are truly looking for high yields, check out Ellington Residential Mortgage REIT.

Structured as a real estate investment trust, it invests and manages residential and real estate mortgage assets.

Ellington has a single focus: mortgage-backed securities for which principal and interest payments are guaranteed by a US government agency.

In June, Ellington Residential increased its quarterly dividend rate from 28 cents per share to 30 cents per share.

More recently, management decided to move to a monthly distribution schedule and declared an inaugural monthly dividend of $ 0.10 per share payable on November 26.

“By moving to a monthly dividend,” said CEO Laurence Penn, “we are further aligning our distribution practices with the interests and expectations of income-driven shareholders.

At the current share price, the REIT offers an attractive 10.2% dividend yield.

Regularly collect rental checks without owning an owner

Owning real estate is one of the oldest ways to earn passive income.

But you don’t have to be a homeowner to collect rent checks. And you don’t have to limit yourself to the stock market.

For example, some popular investment services help lock in a stable rental income stream by investing in high-end real estate properties – from commercial developments in Los Angeles to residential buildings in New York City.

You will be exposed to high-end properties that real estate moguls typically have access to, and you receive regular payments in the form of quarterly dividend distributions.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.


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