Dividend stocks are some of the safest investments you can make
- Investing in safe high-yield dividend stocks is a good way to protect yourself as the economy slips closer to a recession.
- San Juan Basin Royalty Trust (SJT): The company’s royalties are really attractive when energy prices are as high as they are today.
- CVR Partners (UAN): The master limited partnership is particularly profitable because Russia’s invasion of Ukraine helped boost the price of fertilizer.
- Arbor Realty Trust (ABR): The New York-based lender handles direct-lending services for multi-family and commercial real estate.
- OneMain Holdings (OMF): It specializes in working with customers with low credit scores, which may be more common as the nation battles high inflation and the threat of a recession.
- Genco Shipping & Trading (GNK): Its 44 ships provide shareholders and the company with a consistent, reliable flow of cash.
- Artisan Partners Asset Management (APAM): With offices around the globe, Artisan has more than $120 billion in assets under management.
- Southern Copper Corporation (SCCO): Precious metals are a good way to diversify your portfolio, as many metals remain critical to manufacturing.
In this market, it’s understandable if you’re a little jumpy. Inflation is up, returns are down and retirement accounts are taking it on the chin. There’s probably nothing that would make you feel better more than some safe, high-yield dividend stocks to buy.
While there’s no sure thing when it comes to investing, you can tip the odds greatly in your favor by investing in equities that are safe high-yield dividend stocks. Dividend stocks are some of the safest investments you can make.
I love dividend stocks because they pay you to hold them, and you can take the monthly or quarterly income and reinvest it in the market to turbocharge your portfolio growth.
The stock market is surely challenging right now. So consider these safe high-yield dividend stocks:
|SJT||San Jan Basin Royalty Trust||$10.01|
|ABR||Arbor Realty Trust||$12.20|
|GNK||Genco Shipping & Trading||$14.05|
|APAM||Artisan Partners Asset Management||$26.62|
|SCCO||Southern Copper Corporation||$47.08|
San Juan Basin Royalty Trust (SJT)
I’ll be the first to admit that San Jan Basin Royalty Trust (NYSE:SJT) isn’t on everyone’s radar. Maybe that’s why I like it. Or maybe it’s because of the solid payout record.
San Juan Basin Royalty Trust owns royalty interests in oil and gas properties in the San Juan basin of New Mexico. It pays out royalties in the form of distributions, which can be really attractive when oil prices are high, as they have been recently.
Despite a recent pullback, SJT stock is up 69% so far this year and it has a monthly dividend yield of 14.4%. Earnings for the second quarter included revenue of $13.72 million (up 81.4% from a year ago) and a profit margin of 97.2%.
SJT stock has an “A” rating in the Dividend Grader.
CVR Partners (UAN)
CVR Partners (NYSE:UAN) is a master limited partnership in the fertilizer business. As the price of fertilizer spiked this year following Russia’s invasion of Ukraine, UAN stock has been the beneficiary.
At one point this year, UAN stock was more than $177 per share and showed gains of over 110%. But even with a recent pullback, CVR Partners is still showing a gain of over 55%. And the war in Ukraine shows no signs of letting up. CEO Mark Pytosh told analysts in August that war tensions will likely keep prices of fertilizer elevated for the rest of the year.
Earnings for the second quarter included revenue of $244 million, which was up 76.8% from a year ago, and earnings per share of $11.12. Currently paying a dividend of 16.4%, it has a solid “A” rating in the Dividend Grader.
Arbor Realty Trust (ABR)
Arbor Realty Trust (NYSE:ABR), a New York-based lender, handles direct-lending services for multi-family and commercial real estate. It handles everything from Fannie Mae and Freddie Mac loan programs, FHA and low-income loans, bridge loans and more.
Earnings for the second quarter included revenue of $94.26 million, which was better than analysts’ expectations of $82.38 million. Earnings per share came in at 52 cents, better than the 43 cents that the Street was expecting.
And to top it off, ABR stock offers a whopping dividend yield of 12.7%, which helps take the sting off the stock’s year-to-date loss of more than 30%.
ABR stock has an A rating in the Dividend Grader.
OneMain Holdings (OMF)
OneMain Holdings (NYSE:OMF) is an Indiana-based company that is one of the nation’s biggest personal installment loan companies.
It specializes in working with customers with low credit scores – something that may be more common with the nation battling high inflation and the threat of a recession.
However, the market hasn’t been kind to shareholders in recent months. OMF stock is down 33% so far in 2022, including a drop of 12% in the last three months.
Earnings in the most recent quarter were also a disappointment, with OneMain recording $1.04 billion in Q2 revenue, missing estimates of $1.05 billion. Earnings per share of $1.87 missed analysts’ estimates by a dime.
However, OneMain takes the sting off that performance by offering a solid dividend yield of 11.8%, helping give it an “A” rating in the Dividend Grader.
Genco Shipping & Trading (GNK)
If you’re familiar with supply chain and shipping challenges around the world – a common theme since the outbreak of Covid-19 in 2020 – then you probably have some appreciation for Genco Shipping & Trading (NYSE:GNK).
The company provides dry bulk transportation services for shipping grain, coal, iron ore and other commodities around the globe. It owns a fleet of 44 Capesize, Ultramax and Supramax ships that it rents out for more than $27,000 per day. That provides some solid cash flow for shareholders.
Earnings for the second quarter included revenue of $105.3 million, beating expectations of $103.88 million. EPS of $1.10 was less than expectations of $1.17, however.
Even so, GNK provides an outstanding dividend yield of 14.8%, which helps push it into an “A” rating in the Dividend Grader.
Artisan Partners Asset Management (APAM)
You may think of this as another one of those under-the-radar picks, but I’ve had my eye on Artisan Partners Asset Management (NYSE:APAM) for a long time. In fact, it was on my list of top dividend stocks to buy for 2022.
The Wisconsin-based company provides investment management services, primarily to commercial customers. It has more than $120 billion in assets under management and maintains offices in major cities in the U.S. and around the world.
Earnings for the second quarter were a minor disappointment, with revenue of $251.4 million and EPS of 79 cents per share missing analysts’ estimates of $253.82 million and EPS of 85 cents. But with a dividend yield of nearly 13%, APAM stock still has a “B” rating in my Dividend Grader.
Southern Copper Corporation (SCCO)
Southern Copper Corporation (NYSE:SCCO) produces refined gold, silver, copper and other precious metals, with its primary operations being in South America. It operates as an indirect subsidiary of Grupo Mexico SAB de CV (OTCMKTS:GMBXF).
While the prices for some precious metals fall in a rising interest-rate environment, many metals are critical to manufacturing. The demand for gold is expected to grow by a compound annual growth rate of 3.1% between now and 2026.
SCCO stock is down 21% on the year – slightly worse than the Dow Jones Industrial Average, but slightly better than the S&P 500. The performance is certainly in the middle of the pack. But commodities provide some baseline security for investors, particularly in a challenging market, and are a good way to diversify a portfolio.
When you add in a dividend yield of 8.5%, you can see why Southern Copper still gets an “A” rating in the Dividend Grader.
This post originally appeared at InvestorPlace.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.