Hello there, Fools. I’m back to highlight three stocks with scrumptious dividend yields. As a reminder, I do this because high-yield dividend stocks
- can provide a fat income stream in both good markets and bad markets;
- often display lower volatility (risk) than non-dividend payers; and
- tend to outperform over the long haul.
Studies show than dividends account for more than 50% of the stock market’s long-term total returns, so devoting a good chunk of your research to high-yield stocks only makes sense.
Let’s get to it.
Kicking off our list is Brookfield Property Partners (TSX:BPY.UN)(NASDAQ:BPY), which currently sports a dividend yield of 6.2%. Shares of the commercial real estate company are already up 20% in 2019 versus a gain of 11% for the S&P/TSX Capped Real Estate Index.
After a disappointing 2018, Brookfield shares are bouncing on strong quarterly results. In its Q4 report last week, company funds from operations (FFO) increased 45%, while management raised its quarterly distribution 4.8%.
“With our fifth consecutive year of increased company FFO per unit, we are pleased to announce that we are raising the quarterly distribution to unitholders by 5% and will also be allocating a significant amount of capital to repurchase our own units at a substantial discount to their underlying value,” said CEO Brian Kingston.
With the stock still below its 52-week highs, there might be time to buy into that bullishness.
Next up, we have Russel Metals (TSX:RUS), whose shares offer a dividend yield of 6.5%. The steel and metal products producer is down 24% over the past six months versus a loss of 7% for the S&P/TSX Capped Industrials Index.
U.S. tariffs on steel and aluminum imports have weighed heavily on Russel over the past year, but the company might be turning a corner. In its Q4 results last week, net income popped 64%, revenue increased 34.5%, and free cash flow more than doubled, suggesting that management is doing well to manage the global trade issues.
“Our strong earnings were a result of their ability to utilize local market knowledge to react quickly to the changing environment,” said President and CEO John Reid.
With a beta of 1.5, the stock is certainly volatile. But given Russel’s high yield and positive operating momentum, enterprising investors should take a peek.
With a dividend yield of 5.7%, RioCan REIT (TSX:REI.UN) rounds out our list of high yielders this week. Shares of the retail REIT are up 6% so far in 2019 versus a gain of 8% for the S&P/TSX Capped REIT Index.
Despite secular concerns over the “death” of brick-and-mortar retail, RioCan’s numbers remain solid. In its Q4 results yesterday, FFO per share and same-store property net income — key metrics for REITs — both increased 2%. Moreover, year-over-year committed occupancy improved 50 basis points to 97.1%.
“The quality of our portfolio, income and liquidity has never been better than it is today,” said CEO Edward Sonshine. “We are also pleased with the development completions scheduled for 2019 and 2020 and the yields we are achieving, adding to our optimism about RioCan’s next several years.”
With such a fat yield, I wouldn’t hesitate to bet on that optimism.
The bottom line
There you have it, Fools: three attractive high-yield dividend stocks worth checking out.
As always, they aren’t formal recommendations. They’re simply ideas for further research. High-yield stocks often come with higher risks, so plenty of homework is still necessary.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Brookfield Property Partners is a recommendation of Stock Advisor Canada.