Stock market investing requires patience. Cashing out on a stock is often best after years of tying up your money, and market fluctuations will leave you questioning your decision often. Dividends, while often small, allow for some satisfaction while your money continues to grow in your portfolio.
Healthy dividend yields are a bonus to an investment portfolio, and you don’t need to settle for low 2% yields. Three stocks considered “safe” that offer 5%+ dividends include:
1. AT&% (T)
AT&T offers a 4.99% dividend yield, down from the 5.8% yield just a year ago. The company has a lot going for it, including being a telecom giant in an industry that takes billions to enter. AT&T purchased DirectTV to solidify the company’s television subscriptions and offers broadband, television, phone and mobile services around the country.
The company’s stock growth has been steady since falling from its 2006-2007 highs, but the company keeps improving its network and infrastructure, which is a positive sign for the company’s future.
Recent reports from the company state that $175 million was invested in enhancing the company’s network in Minneapolis. Another $1.55 billion was invested in enhancements in New Jersey, $900 million invested in advancements in Pennsylvania, and millions invested in enhancing the company’s networks elsewhere.
The company also beat EPS estimates of $0.69 for Q1 2016 after posting an EPS of $0.72.
2. HCP (HCP)
HCP is an REIT that focuses primarily on healthcare properties. An aging society and a growth in healthcare demands allows HCP to maintain a healthy outlook moving forward, and the company boasts a 7.1% dividend yield.
The company impressed investors during Q1 2016 with revenues of $640.15 million and net earnings of $115.76 million.
One-time items pushed the company’s earnings upward year-over-year, up 4.85%. The downside of HCP is that the $640.15 million is down from $665.12 million the previous quarter.
Earnings were up 148% year-over-year, and earnings also increased from Q4 2015 when the company posted a $580.5 million loss on the quarter. Overall, the company’s growth and history of high dividend yields makes it a safe bet.
3. GlaxoSmithKline (GSK)
GlaxoSmithKline offers a 5.3% dividend yield that is ideal for income-seeking investors that want to invest in the pharmaceutical industry. Investors questioned the company’s position last year when the company lost its exclusive rights to Advair, a drug for COPD.
The company assured investors that they would experience double-digit earnings in 2016, and Q1 2016 earnings per share reached 14%.
Revenue also increased 11% from Q1 2015, up to $9.04 billion. When not considering exchange rate fluctuations, the company’s revenue and EPS both rose 8% on the quarter. The company recently announced that its lung drug has passed UK testing, which is a major boost for the company.
We expect the company’s revenue to struggle next quarter due to China implementing 67% price cuts on the company’s drugs, but next-generation HIV medicines and therapies from the company are expected to offset these losses in the long-term.
With a 5.3% dividend, GlaxoSmithKline offers great returns for investors seeking some income from their investments.
