5 High Yield Stocks to Buy Now
By: Ned Piplovic,
Income investors always search for high yield stocks to add a steady flow of dividend income to their portfolio.
However, while rising dividend payouts increase the Dividend Yield, so do declining share prices. Therefore, investors must consider more than the dividend payouts when choosing in which high dividend stocks to invest.
In addition to high yields, the five high yield stocks on this list also have ex-dividend yield in the next two weeks. Therefore, interested investors must make sure to conduct their own analysis and all due diligence promptly. The earliest ex-dividend date will occur on September 24, 2019. To receive the next round of dividend distributions, investors must claim stock ownership at least one day before the ex-dividend date.
5 High Yield Stocks to Buy Now: #5
Umpqua Holdings Corporation (NASDAQ:UMPQ)
Umpqua Holdings is a financial holding company that conducts business primarily through its two operating subsidiaries — Umpqua Bank and Umpqua Investments, Inc. The company has been paying dividends since 1999 and has a current streak of eight consecutive annual dividend hikes. Since beginning the current streak of consecutive boosts, the company has enhanced its total annual dividend payout amount more than four-fold, which corresponds to an average annual growth rate of 17.3% since 2009.
The current $0.21 quarterly dividend payout amount is 5% higher than the previous $0.20 distribution. This new payout amount converts to an $0.84 annual payout, which currently yields 5%. Assisted by a recent share price pullback, the rising dividends elevated the current yield 26% above the company’s own average yield of 3.97% over the last five years
In addition to exceeding the company’s own average, the current yield is also 78% higher than the 2.81% average yield of the entire Financial sector, as well as 132% higher than the 2.16% average yield of the company’s peers in the Pacific Regional Banks industry segment. Additionally, the current yield is also 75% higher than the 2.86% simple average of the segment’s only dividend-paying equities.
5 High Yield Stocks to Buy Now: #4
National Health Investors, Inc. (NYSE:NHI)
National Health Investors is a real estate investment trust (REIT) specializing in sale-leaseback, joint-venture, mortgage and mezzanine financing for senior care communities, entrance-fee retirement communities, skilled nursing facilities, medical office buildings and specialty hospitals.
The REIT’s current $1.05 quarterly dividend is 5% higher than the $1.00 payout from the same period last year. The current quarterly payout corresponds to a $4.20 annualized distribution and currently yields 5.1%, which is 2.4% higher than the REIT’s own five-year average yield of 4.98%.
Furthermore, the current 5.1% yield is also more than 80% above the Financial sector’s 2.81% current average yield. Additionally, the REIT’s current yield also outperformed the 3.4% average yield of the company’s peers in the Healthcare Facilities REITs industry segment by 50%.
As required to maintain its favorable tax status, National Health Investors began paying dividend distributions in 1991. The company suspended payouts and did not pay any dividends in 2001. However, after resuming dividend distributions in 2002, the REIT has boosted its annual dividend payout every year. Over the past 17 years, the company has enhanced its total annual payout amount nearly three-fold, which corresponds to an average growth rate of 6.2% per year.
The REIT combined its share price growth and dividend distributions for a 13% total return over the past 12 months. The three-year return came in at 23% and the total return was more than 60% over the last five years.
5 High Yield Stocks to Buy Now: #3
Pattern Energy Group, Inc. (NASDAQ:PEGI)
Pattern Energy Group, Inc. operates as an integrated renewable energy company through two primary business segments — Operating Business and Development Business. The company has paid dividends every year since its formation in late 2012. Over the past five years, the company has enhanced its total annual dividend distribution amount 32%. This level of advancement corresponds to an average growth rate 5.8% per year since 2013.
The current $0.422 quarterly distribution amount is equivalent to a $1.69 annualized dividend distribution and a 6.2% forward dividend yield. While the dividend amount rose every year, the share price rose more than 34% just over the trailing 12 months. This rapid share price advancement pushed the current dividend yield 8.2% below Pattern Energy’s own five-year average yield of 6.76%.
Despite lagging behind its own average, Pattern Energy’s current yield outperformed the average of the company’s industry peers. Compared to the 1.96% simple average yield of the overall Utilities sector, Pattern Energy’s current 6.2% yield is more than triple. Additionally, Pattern Energy’s current yield also outperformed the 2.32% simple average yield of the company’s peers in the Diversified Utilities industry segment by 167%. Even compared to the 3.38% average yield of the segment’s only dividend-paying equities, Pattern Energy’s current yield is still 83.5% higher.
5 High Yield Stocks to Buy Now: #2
Philip Morris International, Inc. (NYSE:PM)
Since emerging in its current form after a series of corporate reorganizations in 2008, Philip Morris International has increased its annual dividend distribution every year. Over the past decade, the company advanced its total annual dividend distribution amount nearly five-fold. This rapid pace of dividend advancement is equivalent to an average growth rate of more than 15% per year.
The company’s $1.17 upcoming quarterly dividend distribution next month marks the 11th annual dividend hike and will be 2.6% higher than the $1.14 quarterly payout from the last period. This new quarterly payout corresponds to a $4.68 annual dividend distribution and a 6.25% forward dividend yield. Furthermore, the current dividend yield is nearly 28% higher than the company’s own 4.89% average yield over the last five years.
In addition to trending ahead of its own five-year average, Philip Morris International’s current yield is also more than triple the 1.88% simple average yield of the overall Consumer Goods sector. The current yield is also 66% higher than the 3.75% average yield of Philip Morris’ peers in the Tobacco Products industry segment. Furthermore, the current 6.25% yield even outperformed the 4.12% average yields of the segment’s only dividend-paying equities by more tan 50%
5 High Yield Stocks to Buy Now: #1
B&G Foods, Inc. (NYSE:BGS)
B&G Foods is a holding company that manufactures, sells and distributes branded shelf-stable food, frozen food and household products across the U.S., Canada and Puerto Rico. In addition to production of its branded products, the company also offers institutional and food service sales, as well as private label sales.
As well as offering nearly a decade of annual dividend hikes, the company’s share price pulled back over the past year. This pullback could be a good opportunity to take a long position in the stock at discounted share prices, as analysts seems confident of the stock’s recovery potential.
In August 2019, only one of the eight analysts covering the stock had a positive recommendation – a Strong Buy. However, in September, two additional analysts initiated coverage and now half of the analysts covering the stock have either a “Buy” (2) or a “Strong Buy” recommendation.
While waiting for the potential share price recovery, investors can enjoy dividend income of nearly 10%, courtesy of the share price pullback and the steadily rising dividend distributions. B&G Foods nearly tripled its annual dividend payout over the past nine years, for an average annual growth rate of 12.1%.
This growth resulted in a current quarterly dividend payout of $0.475, which corresponds to a $1.90 annual distribution and a 9.7% yield. This current yield is 70% higher than B&G Foods’ 5.68% five-year average yield, as well as more than five-fold higher than the 1.88% average yield of the overall Consumer Goods sector. Additionally, the current yield is also 450% higher than the 1.76% yield average of the Processed & Packaged Goods industry segment, as well as nearly triple the 3.25% yield average of the segment’s only dividend-paying equities.
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Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.