Related Symbol
avatar
@UndyingValue 1 week ago

Breakdown of three high-yield dividend stocks for passive income

Breakdown of three high-yield dividend stocks for passive income

A recent article highlighted three dividend stocks for building passive income, averaging a 7.7% blended yield. First is Ares Capital (ARCC) yielding nearly 10%. They have a 17-year track record of stable or growing dividends. First half earnings and realized gains easily covered their $0.96 payout. Second is Energy Transfer (ET) with a 6.5% yield. It is an MLP, meaning it comes with a K-1 tax form. They have increased their distribution for 19 straight quarters. They generated $5.3 billion in cash flow in the first half of the year, which comfortably covers their $2.3 billion payout and leaves room to fund new pipeline and export projects. Third is VICI Properties (VICI), an entertainment and casino REIT yielding about 7%. Their payouts have grown at a 7% annual rate since 2018. Many of their long-term leases have inflation escalators, and they recently added seven Nevada casinos to their portfolio. Splitting $5,000 across these three would generate about $400 a year in dividends, compared to the roughly $50 you would get from an S&P 500 index fund.
post thumbnail
no comments yet

There are no comments here, be the first to comment