Income investors are always looking for dividend stocks with high yields that can provide them with reliable cash flow. Retirees in particular often seek stable companies that are only likely to offer modest growth, but have predictable dividends. In other cases, income investors with a higher tolerance for risk may prefer to buy shares of businesses in distressed industries while they’re down, locking in great long-term yields — assuming they recover.
These five stocks all offer high yields at their current share prices, but not all will be suitable for every income investor. Consider the merits and caveats of each before deciding whether to add it to your stock portfolio.
Medical Properties Trust (NYSE: MPW) is suitable for income investors who prioritize stability but also seek opportunities for share price appreciation. The real estate income trust (REIT) owns nearly 400 healthcare properties in the U.S., Europe, and Australia, most of which are general acute care hospitals or inpatient rehab facilities. Demographic trends suggest that demand will continue to grow for healthcare services, which are also fairly resistant to economic cycles. This business is by no means guaranteed, but it displays all the hallmarks of a company with cash flow stability.