Here Are My Top 3 High-Yield Stocks to Buy Now
Toronto-Dominion Bank (NYSE: TD) has a 5% dividend yield. Realty Income's (NYSE: O) yield is 5.7%. And Brookfield Renewable (NYSE: BEP)(NYSE: BEPC) offers a yield of as much as 6.9%. Even after the big market drop, the S&P 500 index (SNPINDEX: ^GSPC) is only yielding around 1.4%. But the big yields aren't why I like each of these high-yield stocks. Here are my thoughts on each and why I believe each one is worth buying now.Toronto-Dominion's lofty yield didn't come about because of the market sell-off. It arose because the bank's U.S. business was used to launder money, which got it in trouble with U.S. bank regulators. There was a large fine, the company is upgrading its internal controls, and TD Bank, as it is more commonly known, is operating under an asset cap in the U.S. The asset cap is the big problem because it basically means TD Bank can't expand its U.S. business until regulators are convinced the money laundering issue is in the past. That could take a few years.The thing is, TD Bank is a Canadian bank that operates in what amounts to a government-approved oligopoly in its home market, where it isn't facing any material regulatory scrutiny. So the foundation remains very strong. And while the U.S. business was expected to be the bank's growth engine, the regulatory issues are likely to pass in time. So, TD Bank will, eventually, get back on to the growth path. In the meantime, investors can collect a historically high 5% dividend yield while they wait out the market's turbulence.Continue reading
Toronto-Dominion Bank (NYSE: TD) has a 5% dividend yield. Realty Income's (NYSE: O) yield is 5.7%. And Brookfield Renewable (NYSE: BEP)(NYSE: BEPC) offers a yield of as much as 6.9%. Even after the big market drop, the S&P 500 index (SNPINDEX: ^GSPC) is only yielding around 1.4%. But the big yields aren't why I like each of these high-yield stocks. Here are my thoughts on each and why I believe each one is worth buying now.
Toronto-Dominion's lofty yield didn't come about because of the market sell-off. It arose because the bank's U.S. business was used to launder money, which got it in trouble with U.S. bank regulators. There was a large fine, the company is upgrading its internal controls, and TD Bank, as it is more commonly known, is operating under an asset cap in the U.S. The asset cap is the big problem because it basically means TD Bank can't expand its U.S. business until regulators are convinced the money laundering issue is in the past. That could take a few years.
The thing is, TD Bank is a Canadian bank that operates in what amounts to a government-approved oligopoly in its home market, where it isn't facing any material regulatory scrutiny. So the foundation remains very strong. And while the U.S. business was expected to be the bank's growth engine, the regulatory issues are likely to pass in time. So, TD Bank will, eventually, get back on to the growth path. In the meantime, investors can collect a historically high 5% dividend yield while they wait out the market's turbulence.
