It’s not easy to find good stocks with high yields these days. That’s especially true if you’re looking for a solid stock that won’t make you take on too much risk to get that high yield. There are some good choices out there though if you look. Here’s my top 3 list this year.
1- Verizon (VZ)
I have personally had a stake in this stock for a long time. Don’t let my bias fool you though, Verizon is a true dividend stock winner.
Verizon’s value comes from being the leader in their industry. They have the number one cell network in the US and they’re leading the way to a faster and more efficient networks. This summer you can expect to see 5G speeds in some areas of the country.
Who knows, one day you might be going to Verizon for your home wifi if they continue raising network speeds the way they have been. We are a ways away from anything like that, but there’s no denying that our wireless devices are getting faster, and a big part of that is the network we are using.
Being a leader in an industry is one thing, but Verizon has other advantages too. Because of the consistent cash flow they’ve had over the years they’ve been able to increase dividend payouts over time to compensate investors.
As for their yield? They’re topping 5% now. A great return for a solid investment, no doubt. I highly recommend you at least look into Verizon if you only check one of the stocks on this list.
2- Enterprise Products Partners (EPD)
I used to have a stake in Enterprise Products Partners, but I closed out my position last year because I was making changes to my portfolio. Nevertheless, I still think it’s a great stock to buy.
Enterprise Products Partners is like having diversified exposure to domestic oil in this country. That’s just the easiest way to explain it. They own almost 50,000 miles of pipelines, and 260 million barrels to store and transport oil and gas around the country. That’s a great way to expose yourself to oil without having too much in one basket.
One of the best things about the stock is its dividend and the growth that goes along with it. Right now it stands at just over 6% yield. They’ve also been raising their dividend consistently for over a decade now. And yes, They even raised it during the most recent financial crisis and subsequent bear market. That’s powerful stuff.
3- GameStop (GME)
This third stock to round out the three on my list is a bit more risky than the other two stocks, for sure. However, with its recent beat down over the past couple years it might be a good buy at this point.
For starters, it has a dividend yield that is approaching 7%, and they’ve been strong with the growth of their dividend since 2012. That’s a good solid number of years of persistence.
That being said, they do have to deal with the behemoth that is Amazon in the retail space. However, they’ve done a good job keeping their costs down and remaining stable. They aren’t improving on revenue, but they aren’t tanking either unlike some of the other players in the retail field.
If you wanted to make a bold dividend stock pick for 2017 then I’d go with GameStop. The recent share price is approaching the $20 range which has long term support and it could bounce up from this point.