4 ultra-high dividend stocks to buy now

Not many people know how powerful dividend-paying wealth capitalization machine stocks are. The S&P 500 The index has generated approximately 1,200% gains over the past three decades. With dividends reinvested, those earnings more than doubled to over 2,400%, proving time and time again why dividend-paying stocks are so worth your money.

Unfortunately, many investors end up trapped in dangerous high returns. While you should never seek returns blindly, there is nothing like it if you can invest in dividend-paying stocks that support their high returns with stable and growing dividends. The four ultra-high dividend stocks below – with yields of 5% to 8% – are a great fit and have strong potential for wealth creation.

Get a dividend increase every quarter

If you think the worst is over for the economy and businesses are ready to bounce back, now is the time to buy WP Carey (NYSE: WPC) actions.

That’s not to say that WP Carey will stumble when the going gets tough – it’s unlikely. Even in the exceptionally difficult pandemic year of 2020, when most commercial properties closed, the company managed to collect most of its rent. WP Carey is a real estate investment trust (REIT) that buys properties and leases them to companies in industrial spaces, warehouses, offices, retail and self-storage spaces under agreements at long term with built-in annual rent escalators.

At the end of June 30, 2021, except U-Haul and Marriott International, each of which had leases of around 2.4 to 2.8 years, all of WP Carey’s other eight largest tenants had leases over seven years, going up to 22.

Image source: Getty Images.

With the economy reopening, WP Carey is back in search of growth opportunities. It invested nearly $ 1 billion in the first half of 2021 and raised its range of adjusted operating funds forecast (FFO) for the full year to $ 4.94 – $ 5.02 per share, from 4 , $ 74 per share earned in 2020. Its tenants are also growing. Its largest tenant, U-Haul, for example, just announced a new three-story moving equipment and self-storage center in Carlsbad to meet growing demand.

With management targeting another $ 500-1 billion investment this year, WP Carey’s FFO is expected to continue growing. As the FFO increases, dividends are also expected to increase. WP Carey has increased their dividends every year since going public in 1998 and are increasing their dividends quarterly, so you get a nice bump in income every three months. With the stock losing ground in recent weeks and returning 5.5%, WP Carey is a great addition to an income investor’s portfolio.

An underestimated stock with solid potential

My next choice is also a REIT, but in the health sector with high potential. The COVID-19 pandemic has put healthcare at the forefront, making it a good time for businesses that own healthcare facilities to expand.

Medical Property Trust (NYSE: MPW), for example, announced investments worth $ 2 billion just between its first and second quarters, bringing its total investments so far this year to nearly $ 3.6 billion. This equates to the total investment the company made in 2020.

Image source: Getty Images.

Here are some notable numbers on Medical Properties Trust that you should know:

• It has hospitals in 32 states in the United States, as well as in Europe, Australia and South America.
• It has more than 440 establishments with approximately 47,000 approved beds.
• 72% of its establishments specialize in general acute care that requires short stays, such as surgery, acute medical conditions or injuries. Other hospitals focus on behavioral health, rehabilitation, and long-term care.
• Today, Medical Properties Trust is the second largest non-government owner of hospitals in the United States.
• In 2020, it recorded 490,000 admissions, 300,000 surgeries and 2 million emergency room visits in the United States alone.

As incredible as these numbers are, almost all of Medical Properties Trust’s contracts have built-in annual escalators for inflation. This, coupled with aggressive acquisitions, has consistently driven the company’s AFFO up, allowing it to increase dividends over the past eight years. With the company aggressively expanding its portfolio, investors in this 5.5% yielding stock should not be disappointed.

These dividend-growing stocks won’t fail you

The energy sector offers some of the most attractive dividends out there right now, but mid-dividend oil and gas stocks are among your safest and best bets. Choose between Enterprise Product Partners (NYSE: EPD) and Enbridge (NYSE: ENB).

As intermediary companies, Enterprise Products and Enbridge primarily store and transport crude oil, natural gas and natural gas liquids (NGLs), and therefore earn income primarily in the form of fees under long-term contracts that are executed regardless of the behavior of oil prices. . This means that their cash flow is quite stable and even predictable, which is hard to find among commodity stocks. Both are among the largest pipeline operators in the United States, Enterprise Products is also the world’s largest exporter of liquefied petroleum gas (LPG).

The best part is the dividends offered by these two stocks and the type of return those dividends have generated for patient shareholders over the years. While Enterprise Products has increased its dividends for 22 consecutive years, Enbridge has achieved Dividend Aristocrat status with 26 years of consecutive dividend increases. Enbridge shares return 6.6% and Enterprise Products Partners return 8.1%.

EPD data by YCharts

Both of these companies are well-run with strong balance sheets and project pipelines, and are also growing their low-carbon businesses. Enbridge, in fact, has just taken a big step forward by agreeing to acquire privately held Moda Midstream Operating for $ 3 billion. The deal, expected to close later this year, is expected to not only increase Enbridge’s export capacity along the Gulf Coast, but also immediately increase its cash flow. This should allay concerns about the sustainability of Enbridge’s dividends.