A quick list of high yield stocks trading on highs on the US stock market.
You know what they say about things that seem too good to be true? Don’t be easily fooled by high yielding stocks. A dividend is a function of a stock’s profit- a fixed sum rather than a percentage of the share price. The yield is simply this fixed amount divided by the share price. Stocks with unusually high yields are usually stocks that have seen dramatic decreases in price. I would suggest looking at Frontline, which is currently yielding about 30% but is down 57% in 2020 (just as an example – there can of course be many reasons for this, but the point here is to illustrate that you shouldn’t look at dividend yield alone.)
While such stocks may fit your investment strategy, you should be aware that high yields aren’t always the sweet deal they seem.
So today we’ll look at high yield stocks trading on highs on the US stock markets. By looking at stocks trading at 6 month highs, we will be able to find stocks that have been performing well alongside paying a decent dividend. In fact, the better your stock performs the lower your dividend yield will be; not a bad problem to have. This combination is great if you’re interested in financial independence.
These stocks are all US stock market listings, so if you struggle to find them on your own apps (or generally invest a lot in the US stock market) then consider having a look at the STAKE investment platform. I did a STAKE app review video which goes through what the app is about, and if you use my referral link to sign up, you’ll get a FREE SHARE of either Nike, Go-Pro or Dropbox ! https://hellostake.com/referral-program?referrer=PANDABOSS
Finally, do remember that you should always do your own research on a company before investing your money – I am not a financial advisor.
- Arbor Realty Trust (ABR) – dividend yield 9.8% – Arbor Realty Trust, Inc. is a real estate investment trust. The Company invests in a portfolio of structured finance assets in the multifamily and commercial real estate markets. This is a real estate investment trust, and so the yield is much higher than a usual stock – this is because REIT’s have to pay out at least 90% of their profits as dividends to shareholders!
- Enviva Partners (EVA) – dividend yield 7.13% – Enviva is actually the world’s largest producer of industrial wood pellets, an energy source used to generate electricity and heat. We use this to heat my parents’ house in Poland, as it’s really eco friendly!
- Newell Brands (NWL) – dividend yield 4.7% Newell Brands is an American worldwide manufacturer, marketer and distributor of consumer and commercial products with a portfolio of brands such as Yankee candle, Sharpie, and Crock-Pot.
- Southern Copper Corporation (SCCO) dividend yield 3.7% Southern Copper Corporation is a mining company that was founded in 1952. Southern Copper is the world’s largest publicly traded copper mining company and the world’s seventh largest copper mining company based on 2007 sales.
- Tronox Holdings (TROX) dividend yield 2.39% – Tronox Limited is an American worldwide chemical company involved in the titanium products industry. Tronox mines and processes titanium ore, zircon and other materials and manufactures titanium dioxide pigments that add brightness and durability to paints, plastics, paper, and other everyday products…
Hopefully some of these give you a bit of inspiration to go and do some more research! Happy hunting!
The company descriptions have been sourced from wikipedia.org
Photo by Patrick Weissenberger on Unsplash