Depending on where you are in life, different types of stocks can serve different purposes.
If you wanted to add a little extra risk to your portfolio, for example, you could consider adding a fast-growing technology stock like Shopify Inc., Amazon.com, Inc. or even one of Canada’s leading marijuana producers like Canopy Growth Corp. or Aurora Cannabis Inc.
But if you’re playing the long game and you aren’t very interested in taking too much risk, chances are you’re going to find yourself favouring the stocks of companies that pay their shareholders a regular dividend.
If you’re young, you might want to sacrifice some income today in return for some added growth tomorrow.
Stocks such as Dollarama Inc., which pays a yield of under 1% today, but has grown its net income by an average of 19% over the past five years, might fit this bill for someone who is still 20 years away from retirement.
But if you’re living off the income from their portfolio today – whether as a passive investor or retiree, you are probably going to find yourself favouring the stocks of companies that are giving investors a high payout right now.
With that in mind, the three stocks that make this list pay yields of 6.24%, 9.95% and 10.74% to investors annually, which should go a long way toward providing adequate income for your lifestyle needs.
Government Properties Income Trust (NASDAQ:GOV)
Government Properties Income Trust yields shareholders 10.74% and is a real estate investment trust, or REIT, which primarily owns properties located throughout the United States that are majority leased to the U.S. Government and other government tenants.
The company hasn’t raised its payout since 2013, but the current yield above 10% should be more than enough to whet dividend investor’s appetites.
Brookfield Renewable Partners LP (TSX:BEP.UN)(NYSE:BEP)
Brookfield Renewable Partners is particularly interesting — and unique — in that it is offering shareholders a yield of 6.24% today. Yet the consensus among many is that the future for renewable energy is very bright.
Together, those two factors offer a winning combination of yield and growth potential.
The company has increased its dividend by 4.8% and 5.0% over the past two years, which only serve to add to the attractiveness of the current payout.
GameStop Corp. (NYSE:GME)
GameStop stock is up 22.6% since June as investors have started to “wise up” to the apparent value in the company’s shares.
Even following the recent run-up, GameStop stock still yields shareholders 9.95% and incredibly, the company is paying out only about half of its normalized earnings per share to fund that distribution.
Particularly if the market slows down for the summer or even worse – enters into a recession – Foolish investors will be happy that they picked these three high yielding stocks up for their portfolios.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Fool contributor Jason Phillips has no position in any of the stocks mentioned. David Gardner owns shares of Amazon. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Amazon, GameStop, Shopify, and SHOPIFY INC. Shopify Inc. and Brookfield Renewable Partners LP are recommendations of Stock Advisor Canada.