Are you looking for high-yield dividend stocks to help mitigate the impact of current volatility? If so, you're not alone.
Real estate investment trusts, or REITs, offer some of the most attractive yields to income investors. I mean, it’s practically a given, since they pay 90% of their earnings as dividends to shareholders.
However, as I often say, yields aren’t everything. Finding a REIT that has good yields AND a sustainable income should be your top priority. There’s also something to be said about the REIT’s stability - because you don’t want investments as volatile as penny stocks.
So, how do you find REITs that have what it takes to be part of your long-term, stable portfolio? Today, I’ll show you what to look for in these companies and how you can find them yourself.
Using Barchart’s Stock Screener tool, I entered the following filters to get my list of quality, high-yielding stocks:
Once I hit “See Results,” I got nine companies.
I arranged the results from highest to lowest yields. Now, let’s take the top three and discuss their merits, starting with number one.
First up on the list of high-yielding dividend stocks is Vici Properties, a REIT that focuses on gaming, hospitality, and entertainment properties, or, as it describes them, “experiential” properties. It is one of the largest owners of gaming real estate in the US. It operates several notable properties in the gaming industry, including Caesars Palace, The Venetian Resort, the MGM Grand, and Harrah’s, all located in Las Vegas. Vici’s portfolio includes an impressive 93 assets, totaling 127 million square feet, across the US and Canada.
Twenty-two analysts rate VICI stock a strong buy, with a 4.68 average score (out of five) and has a potential upside of around 30%. The company pays $1.73 annually, which translates to around a 5.2% yield - beating most quality dividend stocks right now. Beyond that, VICI offers stable payouts and has increased its total annual dividends since 2018, making it a strong contender for portfolios geared toward long-term growth. As of today, the stock is less volatile than the index, with a 0.70 60-month Beta, making me more confident about its overall stability.
Public Storage is “the world’s largest owner, operator and developer of self-storage facilities,” at least according to its website. Given that it has a presence in almost the entire US and a large part of Europe through its Shurgard Self-Storage brand, I’d say that’s a safe bet. Just in the US alone, the company operates more than 3,000 facilities and serves millions of customers.
But what about the dividend? Public Storage has maintained a 28-year streak of dividend payments, dating back to 1996. While there were years when dividend increases were flat or decreased, the overall trajectory of the payments has been up. Today, the company pays $12 per year in dividends, which yields around 4%.
Analysts are also optimistic about the stock, rating it a moderate buy with an average score of 4.30, with around a 28% potential upside. It also has a relatively low 60-month Beta of 0.76.
Digital Realty Trust has been around even before data centers were in obscenely high demand due to the AI boom. The company operates over 300 data centers across several continents, with strategic locations in more than 50 metropolitan locations.
DLR, which went public in 2024, has seen spectacular growth due to the increased demand for data centers. To emphasize just how much it grew, the company was trading at around $13.80 20 years ago. Now, it’s around $150.
The company pays $4.88 annually, which yields an annual return of around 3.2%. Although its dividend payments seem to have plateaued since 2022, the company’s business model remains viable, especially given the current AI craze. Analysts seem to agree, rating DLR stock a strong buy rating and around a 45% potential upside. The stock also has a 60-month Beta of 0.92.
The stock market hasn't been this volatile since the beginning of the pandemic, and in the short term, that's not a great thing. That's why picking high-quality, low-beta dividend stocks can be your portfolio's answer to less erratic movements on a daily basis.
English