High Dividend Stocks: 33 High Yield Stocks For Income

Dividend Safety Score: 70   Dividend Growth Score: 57

Sector: Energy Industry: Oil & Gas Production & Pipeline – MLP

Dividend Growth Streak: 7 years

EQT Midstream Partners is a growth-oriented limited partnership formed by EQT Corporation that owns and develops midstream oil and gas assets in the Appalachian Basin. The company provides natural gas transmission, storage, and gathering services in Pennsylvania, West Virginia, and Ohio.

EQT Midstream Partners provides midstream services to EQT Corporation and third parties through two primary segments. Its transmission and storage system (48% of revenues) serves as a header system transmission pipeline. Its gathering system (52%) delivers natural gas from wells to transmission pipelines.

The company owns a 950-mile FERC-regulated interstate pipeline network, 1,800 miles of high- and low-pressure gathering lines, and 43 Bcf of gas storage capacity to deliver its midstream energy services.

The partnership’s cash flows are highly stable and recurring in nature as most of its services are secured under long-term contracts (16-year weighted average transmission contract life) with firm reservation and usage fees. This insulates the company from commodity price risk. For example, its Marcellus gathering units in Pennsylvania and West Virginia have 10-year demand based fixed-fee contracts.

EQT Midstream’s assets are also strategically positioned in the rapidly developing natural gas Marcellus and Utica shale plays. Its sponsor and main customer EQT is a prominent Marcellus producer that is growing sales volumes at a double-digit clip.

The principal business objective for EQT Midstream Partners is to increase its quarterly cash distributions, and the partnership has been quite successful on this front with over 20% annual distribution growth over the last three years.

EQT Midstream Partners targets annual distribution growth of 15%-20% beginning in 2018. With a 1.5x coverage ratio over the last year and an investment grade credit rating from S&P, the partnership’s distribution looks safe as long as management’s growth projects deliver their expected returns and capital markets remain accessible.

9) Ventas, Inc. (VTR)

Dividend Yield: 6.1% Forward P/E Ratio: 13.6(as of 2/9/18)

Dividend Safety Score: 70   Dividend Growth Score: 34

Sector: Real Estate   Industry: Healthcare

Dividend Growth Streak: 8 years

Ventas is a healthcare real estate investment trust. It invests in properties located in the United States, Canada, and the United Kingdom and is one of the largest healthcare REITs in America. Ventas earns approximately half of its revenue from triple-net leases, which are long-term in nature and have annual price escalators to help protect profits.

After spinning off its skilled nursing facility properties into a separate REIT (Care Capital Properties) in 2015, Ventas owns a quality portfolio of more than 1,200 properties, including seniors housing (53% of net operating income), medical offices (20%), specialty hospitals (7%), life science (6%), and acute care hospitals (5%).

With an aging population, the demand for healthcare and senior living services will continue to be robust. The company’s properties should benefit as healthcare spending is expected to grow 5.8% annually through 2024.

Ventas also has strong potential for growth in U.S. because less than 15% of U.S. medical assets are owned by medical REITs today. Compared to other industries, healthcare REITs control a relatively small percentage of real estate assets in this $1 trillion market and should have opportunities for continued consolidation.

With a diversified portfolio of healthcare properties, one of the strongest balance sheets of any REIT, and favorable demographic trends behind it, Ventas is well-positioned to continue growing through acquisitions while paying safe, steadily increasing dividends.

Ventas has paid uninterrupted dividends since going public in 1999 and increased its dividend by 8% per year since 2001.

While the company’s most recent dividend increase was small as a result of its Care Capital Properties spinoff, which reduced cash flow per share, long-term investors can likely expect continued 5% to 6% annual dividend growth over the coming years.

Read More: Ventas High Dividend Stock Analysis

8) Brookfield Renewable Partners (BEP)

Dividend Yield: 6.1% Forward P/E Ratio: 16.7(as of 2/9/18)

Dividend Safety Score: 42   Dividend Growth Score: 59

Sector: Utilities   Industry: Renewables

Dividend Growth Streak: 4 years

Brookfield Renewable Partners is the renewable energy arm of Brookfield Asset Management (62.5% ownership), which is a major global infrastructure company operating in the Americas and Europe. Brookfield Renewable Partners business model is based on owning and operating renewable energy power plants.

Brookfield Renewable Partners has over 100 years of experience in power generation. Its global footprint extends to North America (65% of its operating portfolio), Brazil and Colombia (each 15%), and Europe (5%).

The company has renewable energy capacity of more than 10,000 MW distributed across hydroelectricity (88%), wind energy (11%), solar and biomass energy.

Brookfield Renewable Partners’ competitive edge is its large portfolio of assets located across politically stable countries. About 90% of the company’s cash flow is contracted for the next 15+ years, making for generally safe and predictable business results.

With growing interest in cleaner, more sustainable forms of power, many countries are increasing their use of renewable energy. The potential for growth in the renewable energy space is exponential, with 80% of all U.S. power expected to come from green sources by 2050.

Brookfield Renewable Partners could also potentially double its total generating capacity with the acquisition of TerraForm Power and TerraForm Global – two of SunEdison’s YieldCos.

YieldCos can offer strong income growth potential, and Brookfield Renewable Partners is no exception. The partnership expects to distribute 70%-90% of its funds from operations and has an investment objective is to deliver long-term total returns of 12-15% annually, including distribution growth of 5-9% per year.

7) Enterprise Products Partners L.P. (EPD)

Dividend Yield: 6.1% Forward P/E Ratio: 11.6(as of 2/9/18)

Dividend Safety Score: 64   Dividend Growth Score: 38

Sector: Energy Industry: Oil & Gas Production MLP

Dividend Growth Streak: 21 years

High Dividend Enterprise Products Partners EPD Dividend

Enterprise Products Partners is one of the largest integrated midstream energy companies in North American. It owns 50,000 miles of pipelines, 27 natural gas processing plants, 22 NGL and propylene fractionators, 14 billion cubic feet of natural gas storage capacity, and 260 million barrels of other storage capacity. The partnership also has a marine transportation business.

Natural gas liquids (NGLs) transportation and processing provides the bulk of Enterprise Products Partners’ gross profit. The partnership is doubling down in this area because the shale gas boom has resulted in such an abundance of NGLs (which are used to make plastics) that there is a large, growing export market for refined NGL products in Asia and Europe.

Crude oil pipelines & services (17%) and petrochemical & refined products and services (13%) are other important business units.

Overall, the company has a strong business model with long-term transportation contracts and a base of blue chip customers. The partnership has business relations with major oil, natural gas, and petrochemical companies such as BP, Chevron, ConocoPhillips, Dow Chemical, ExxonMobil, and Shell.

Over half of the firm’s customers have an investment grade credit rating, which makes them better able to continue honoring their contracts even during periods of depressed energy prices.

The partnership also has a large, integrated network of diversified assets in strategic locations. It takes substantial amounts of time and capital to build a grid of pipelines, which results in high barriers to entry.

Enterprise Products Partners’ cash flows are also fee based and long term in nature, thus making them less vulnerable to energy price volatility. With no incentive distribution rights, a solid BBB+ credit rating, and average distribution coverage of 1.2 times, Enterprise Products Partners is one of the most conservative MLPs in the sector.

The company has raised its dividend every year since going public in 1998 and has increased its dividend by 5.9% per year over the last decade. Going forward, income investors can likely expect annual dividend growth of approximately 5%.

Read More: Enterprise Products Partners High Dividend Stock Analysis

6) Welltower Inc. (HCN)

Dividend Yield: 6.3% Forward P/E Ratio: 14.3(as of 2/9/18)

Dividend Safety Score: 65   Dividend Growth Score: 24

Sector: Real Estate   Industry: Healthcare REIT

Dividend Growth Streak: 14 years

High Dividend Stock Welltower HCN Dividend

Welltower is one of the largest medical REITs in America. The company was founded in 1970, and Welltower is involved in practically every aspect of patient care, from hospitals and long-term skilled nursing facilities to senior assisted living communities and medical office buildings.

Welltower’s business segments are long term post-acute care (13% of operating income), outpatient medical (17%), and senior housing (70%). The company owns a diversified portfolio of more than 1,300 properties located primarily in major cities across the U.S., Canada, and the U.K.

Welltower makes money renting out its high-quality portfolio of medical properties under long-term contracts to a diverse group of partners, such as Brookdale Senior Living (BKD) and Genesis Healthcare (GEN), which are the companies primarily caring for patients, although the firm also runs a number of its own properties.

Thanks to its long-term contracts and the essential services provided by its tenants, Welltower has a recession-proof business that generates secure and predictable cash flow (sales grew each year during the financial crisis).

An aging American population is the key to Welltower’s growth. In fact, America is expected to see its 75+ year old population double over the next two decades. With an increasing aging population and growing health awareness amongst people, aggregate health expenditures are anticipated to continue rising for the foreseeable future.

REITs are very popular with income investors because they are required to pay out almost all of their taxable earnings as dividends. Welltower is no exception and has been distributing uninterrupted dividends since making its first payment in 1971.

The company has even increased its dividend in most years throughout its history, growing its dividend by 3.9% annually over the past five years and by 2.5% per year over the last two decades.

Welltower’s dividend has increased every year since 2004, and continued low to mid-single-digit dividend growth is likely to continue for many years to come, matching growth in Welltower’s underlying cash flow.

Read More: Welltower High Dividend Stock Analysis

5) Main Street Capital Corporation (MAIN)

Dividend Yield: 6.3% Forward P/E Ratio: 14.9(as of 2/9/18)

Dividend Safety Score: 55 Dividend Growth Score: 27

Sector: Finance Industry: SBIC & Commercial – BDC

Dividend Growth Streak: 7 years

Founded in Texas during the mid-1990s, Main Street Capital is an investment firm that provides long-term debt and equity to lower middle market companies (businesses with annual EBITDA between $3 million and $20 million) and debt to middle market companies.

The company provides financial services to support management buyouts, recapitalizations, growth financing, and acquisitions.

Main Street Capital has $3.7 billion of capital under management and its portfolio consists of approximately 200 companies, with an average investment size of $10 million. The company’s investment portfolio comprises of lower middle market companies (45%), middle market (32%), private loan (17%) and other investments (6%).

Its investments are relatively safe with more than 85% of its debt investments secured through a first priority lien. The overall investment portfolio is diversified across geographies, industries, end markets, transaction type, etc., helping insulate Main Street Capital from distress in any single company or industry sector.

The firm’s other key competitive advantage is its low cost of borrowing. Main Street Capital owns licenses for three small business investment company (SBIC) funds, which provides access to $350 million of low cost, fixed rate (4.1% p.a.) government-backed leverage.

The company maintains an investment grade rating from S&P as well, and its internally-managed operating structure further reduces its costs.

Main Street Capital is also not required to return its investors’ capital by a specific date, thus allowing more flexibility and potential for higher investment returns.

Since its October 2007 IPO, Main Street has consistently paid monthly dividends to its investors. Impressively, Main Street has never cut its dividend or paid a return of capital distribution.

The company has increased dividend at 9.9% annual rate over the last five years and most recently increased its monthly dividend by 3%.

The company’s regular dividend will likely continue growing at a low single-digit pace, but management frequently issues supplementary semi-annual dividends to further boost income growth.

Read More: Main Street High Dividend Stock Analysis

4) W.P. Carey (WPC)

Dividend Yield: 6.6% Forward P/E Ratio: 11.7(as of 2/9/18)

Dividend Safety Score: 61 Dividend Growth Score: 14

Sector: Real Estate Industry: Diversified REIT

Dividend Growth Streak: 21 years

High Yield W.P. Carey WPC Dividend

W.P. Carey is a leading internally-managed net lease REIT that was founded in 1973 and converted to a REIT structure in 2012. It is one of the oldest REITs in the world and is regarded as the pioneer in the leaseback model of triple net REITs, which is generally viewed as a lower-risk business model.

W.P. Carey has nearly 900 properties leased to more than 200 customers in the U.S. (65% of assets) and Europe (35%). The company’s owns a mix of properties, including office (25%), industrial (30%), warehouse (14%), retail (16%), and self-storage (5%) space. These properties are leased out to a wide variety of sectors such as retail (18%), consumer services (11%), automotive (8%), and sovereign and public finance (6%).

Unlike most of its REIT peers, W.P. Carey operates as a hybrid of a traditional equity REIT as well as a private equity fund, which results in lumpy growth in revenue, cash flow, and dividends. Management sells properties when they become overvalued and reinvests the proceeds into more attractively priced assets. The company also operates a fast-growing investment management division, although this segment is less than 10% of total cash flow and is in the process of being wound down.

W.P. Carey has a solid business model with the portfolio nicely diversified by geography, property type, and industry. As a result, the company is protected from unfavorable developments in any single industry, tenant, property type, or region.

Like National Retail Properties, W.P. Carey also enters into triple net leases with customers for long periods (generally 20-25 years), leading to stable and predictable cash flows. The tenant is responsible for maintenance, taxes, and insurance in triple net lease contracts, thus saving the REIT from operating expenses.

With an occupancy rate of 99.8%, an average lease term of 9.5 years, and about 60% of its leases contracted until at least 2024, W.P. Carey enjoys a very predictable stream of cash flow to support its high dividend.

W.P. Carey has increased its dividend every year since the company went public in 1998 and is a Dividend Achiever. The company’s dividend has increased by 8% per year over the last decade, but dividend growth has decreased to a low single-digit pace more recently.

The deceleration is likely due to the REIT anticipating an eventual increase in interest rates, so most of the marginal cash flow is going to strengthen the balance sheet so that management can continue to grow the business into the future in an era of more costly debt.

While shareholders may have to accept relatively slow dividend growth in the next few years, that doesn’t necessarily mean that W.P. Carey isn’t a good long-term high-yield, dividend growth investment.

As the company has a history of purchasing the assets it manages but does not own, W.P. Carey can likely continue growing its dividend at a rate of 4% to 5% per year over the next decade.

Read More: W.P. Carey High Dividend Stock Analysis

3) Iron Mountain Incorporated (IRM)

Dividend Yield: 7.1% Forward P/E Ratio: 11.3(as of 2/9/18)

Dividend Safety Score: 52   Dividend Growth Score: 22

Sector: Real Estate Industry: Business Services REIT

Dividend Growth Streak: 8 years

Founded in 1951, Iron Mountain is a real estate investment trust that stores and protects all sorts of information for more than 230,000 customers. From business documents and electronic files to medical data and fine art, Iron Mountain’s services cover a very wide range.

Records & Information Management accounts for 75% of revenue, followed by Data Management (15%) and Shredding (10%). Storage accounts for 81% of the company’s gross profits.

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The company has a real estate network of more than 85 million square feet spanning across more than 1,400 facilities (leased and owned) in over 40 countries. Developed markets represent 85% of its total revenues with the balance from emerging markets. Storage rental revenues accounts for about 60% of total revenues, while service revenue is almost 40%.

A diversified customer base (95% are Fortune 1000 companies) and non-cyclical, recurring revenue are the company’s key competitive advantages. Iron Mountain also enjoys long-term customer relationships with typical lifespans averaging almost 50 years.

Operating storage facilities for businesses requires little maintenance capex and generally results in high customer retention rates. In fact, roughly 50% of boxes that were stored 15 years ago still remain in storage. These factors have helped Iron Mountain consistently generate positive free cash flow over the last decade.

For growth, the company is expanding in emerging markets in Europe, Asia, and Africa. It is in an advantageous position to invest in these markets because most of these countries have just started outsourcing records management and are early in the growth cycle. Management hopes these regions can account for 20% of total sales by 2020.

Turning to the dividend, Iron Mountain has grown its payout by 16.4% per year over the last five years.

Iron Mountain expects revenue growth of 8% to 10% and AFFO growth of 8% to 15% in 2017. After a 7% dividend boost in late 2017, the company plans to increase its dividend by 7% in 2018 and 4% annually thereafter.

Read More: Iron Mountain High Dividend Stock Analysis

2) Spectra Energy Partners, L.P. (SEP)

Dividend Yield: 7.2% Forward P/E Ratio: 12.1(as of 2/9/18)

Dividend Safety Score: 53 Dividend Growth Score: 49

Sector: Energy Industry: Oil & Gas Production MLP

Dividend Growth Streak: 11 years

Spectra Energy Partners is a midstream oil and gas infrastructure master limited partnership that transports natural gas, crude oil, and liquids through more than 15,000 miles of interstate pipeline systems in the U.S and Canada. It also owns 170 billion cubic feet of natural gas storage and 5.6 million barrels of crude oil storage capacity.

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The MLP’s business is categorized into U.S. Transmission, Liquids, and Other. The U.S. Transmission business (92% of total EBITDA) consists of transmission, storage, and processing of natural gas in the northeastern and southeastern U.S.

The Liquids segment (8% of total EBITDA) provides transportation and storage of crude oil for customers in the central U.S. and Canada.

More than 90% of revenues come from reservation fees (for reserving capacity on pipelines and in storage facilities) while the rest is from the actual usage of the company’s assets by customers.

The company has a safe and secure business model with long-term contracts with large oil and gas majors (average terms are eight years) and a hard-to-replicate pipeline asset network. The competitive moat of the company is large as it takes a substantial amount of capital to build a pipeline grid that, once built, practically gives the owner a monopoly over that sector.

The MLP’s cash flows are all fee-based and long term in nature, making them more or less immune to swings in oil and gas prices. The partnership also has strong growth potential as natural gas demand is rapidly increasing in North America driven by the low prices due to the shale gas revolution.

Spectra Energy Partners has increased dividends each year since 2007 and recorded an annual dividend growth rate of 7.3% over the last five years. Going forward, the partnership’s dividend will likely continue growing at a mid-single-digit rate and maintain distributable cash flow coverage within management’s target range of 1.05 to 1.15 times.


1) Omega Healthcare Investors Inc (OHI)

Dividend Yield: 10.1% Forward P/E Ratio: 8.9(as of 2/9/18)

Dividend Safety Score: 54   Dividend Growth Score: 10

Sector: Real Estate Industry: Healthcare REIT

Dividend Growth Streak: 16 years

Omega Healthcare Investors is a triple-net real estate investment trust that provides financing and capital to skilled nursing facilities (SNFs) and assisted living facilities (ALFs) in the U.S. and U.K.

The company’s real estate portfolio consists of approximately 1,000 operating facilities, located across over 40 states and run by 77 third-party operators. About 85% of its properties are SNFs with the remainder accounted for by ALFs. The REIT owns about 88% of its assets with the balance coming from mortgages and direct financing leases (7%).

Omega Healthcare’s key competitive advantages are the significant scale of its operations and its diversification across locations and customers. Omega is the largest SNF-focused REIT in the U.S. and further increased its lead after purchasing Aviv for $3.9 billion in 2015. It also operates in the healthcare industry, which provides non-discretionary essential services.

The company’s revenues are regular and secure as the occupancy rate has consistently remained in excess of 80%, and approximately 90% of portfolio expirations occur after 2021.

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Omega’s revenue stream is also reasonably well diversified with the largest tenant accounting for just less than 10% of rent, and no state contributes more than 10% of its total rent.

Due to the fast-growing senior population, the secular demand for Omega’s operators should continue to increase. In fact, aging demographics are expected to drive SNF occupancy beyond capacity in less than 10 years without efforts to reduce lengths of stay and increased utilization of alternative care sites.

However, many of the company’s operators receive revenues through reimbursement of Medicare and Medicaid for their services. Changes in government healthcare policies could create pressure on some of these operators or the SNF industry as a whole.

Investors were spooked by Omega’s latest earnings report, which underscored the challenges certain operators are facing. You can learn more about the company’s latest report and what it means for the company’s outlook here.

For now, Omega Healthcare’s dividend appears to remain safe. The company has increased its dividend for 22 consecutive quarters and raised its dividend payment every year since 2003.

Omega’s dividend has grown by 9.4% per year over the last decade and by 8.3% annually over the last three years.

As long as the regulatory environment remains stable, most tenants remain in reasonable financial health, and capital is accessible to fund growth, Omega can likely continue delivering mid-single-digit dividend growth over the coming years.

Read More: Omega Healthcare High Dividend Stock Analysis

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