Is This 7% Yield Flying Under Your Radar?

The S&P 500 is offering a yield of only 1.35%. In my best possible Chandler impression, "Could that yield be any lower?" That said, there are a lot of individual stocks within the stock market offering yields way higher than this. And you don't have to go buy junky stocks in order to get your hands on some of that income. No, there are actually some stocks that offer quality and yield. These stocks don't just have high yields, by the way. These are dividend growth stocks that are growing their dividends year in and year out. So you get a lot of income today. And you get that growth in your income that allows you to keep up with inflation and retain your purchasing power. Now, many of the higher-yielding dividend growth stocks out there are very popular and well-known. However, some of these stocks fly way under the radar. And that could be your opportunity.

Today, I want to tell you about three under-the-radar dividend growth stocks offering yields of between 5% and 7%. Ready? Let's dig in.

The first under-the-radar high-yield dividend growth stock I want to tell you about is Iron Mountain Inc. (IRM). Iron Mountain is a real estate investment trust that specializes in physical and digital data protection and management. They're also not messing around with income - the stock yields 5.7%. Almost nobody talks about this stock, but it might finally be on investors' radar. I say that because the stock is up a whopping 51.5% YTD. Despite this massive run, though, the stock is still not all that expensive when you compare it up against the market or your typical REIT. The P/CF ratio is only at 13.4 right now. That's well below the broader market's cash flow multiple. And if you compare that up against a lot of other REITs, it's extremely low. Take Digital Realty Trust, Inc. (DLR) for example. They're in the digital data real estate niche that Iron Mountain is moving toward. Digital Realty's P/CF ratio is at 24.1 right now, which is almost twice as high as Iron Mountain's. Iron Mountain could be set for an even higher run, especially with the possibility of a positive rerating on its increasing digital presence.

1 2
View single page >> |

Disclaimer: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.