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5 Investments Yielding 5% or More

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Investors looking for dividend income won’t find much of it by investing in the average large-company stock. Standard & Poor’s 500-stock index—the major large-cap benchmark—yields just 2%, down from 2.1% a year ago. Investors can scoop up a bit more income in shares of gas and electric utilities, yielding an average of 3.2%. But that’s not much when you factor in inflation, which is running at a nearly 2% annualized rate.

Venture beyond the S&P 500, however, and you’ll find dozens of stocks yielding 5% or more. These aren’t all common stocks. Many are classified as master limited partnerships (MLPs), limited partnerships (LPs) or American depositary receipts (ADRs), which are shares of foreign companies that are listed on a U.S. exchange. These types of securities (along with a few others) aren’t eligible for inclusion in the S&P 500. But that doesn’t make them bad investments. And some look quite compelling as income generators.

Here are five picks (including one in the S&P 500) that yield 5% or more. Each should be able to maintain its payout rate based on its solid underlying business. If their share prices increase by a modest 2% a year—well below the long-term market average—investors can expect annualized total returns, including dividends, to top 7%.

Data is as of Oct. 5, 2017, unless otherwise indicated. Click on symbol links in each slide for current share prices and more.

SEE ALSO: 12 Dividend Aristocrat Stocks to Earn Income All Year Long

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