Please enable JavaScript to view the comments powered by Disqus.
Advertisement
Slide Show

1 of 6

5 “Oddball” Dividend Stocks With Big Yields

Getty Images

It’s not the easiest market out there for income investors. With bond yields being depressed for so many years (and still extremely low by any historical standard) investors have scoured the globe for yield, which has pushed the yields on many traditional income investments – namely, bonds and dividend stocks – to levels far too low to be taken seriously.

Even after rising over the past several months, the yield on the 10-year Treasury is still only 2.9%, and the 30-year Treasury yields all of 3.2%. (Don’t spend that all in one place!) The utility sector, which many investors have been using as a bond substitute, yields only 3.4%. Yields on real estate investment trusts (REITs) are almost competitive at 4.4%, but only when you consider the low-yield competition.

Advertisement

Bond yields have been rising since September, due in part to expectations of greater economic growth and the inflation that generally comes with it. This has put pressure on all income-focused stocks. This little yield spike might not be over just yet, either – especially if inflation creeps higher this year.

And this little yield spike might not be over just yet, particularly if inflation creeps higher this year. “Yields breached and stayed above 2.95% last week and recently passed the 3.19% barrier that was last reached just after the November 2016 election,” says Lance Gaitan, bond trader and editor of Treasury Profits Accelerator. “If inflation finally rears its ugly head, long-term Treasury yields have a good chance of moving up toward and even above 3.95%.”

Even if bond yields top out today and start to drift lower rather than higher, yields just aren’t high enough in most traditional income sectors to be worthwhile. So today, we’re going to cast the net a little wider. We’re going to take a look at five quirky dividend stocks that are a little out of the mainstream. Our goal is to secure high yields while also allowing for fast enough dividend growth to stay in front of inflation.

SEE ALSO: 20 of the Best Stocks You Probably Haven’t Heard Of

Data is as of March 7, 2018. Dividend yields are calculated by annualizing the most recent quarterly payout and dividing by the share price. Click on ticker-symbol links in each slide for current share prices and more.

View as One Page

Advertisement
Sponsored Financial Content