Investors Are Buying 4 Sizzling Stocks That Yield 8% and More Hand-Over-Fist

Investors love dividend stocks, especially high-yield ones, because they offer a significant income stream and have substantial total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. For example, if you buy a stock at $20 that pays a 3% dividend and rises to $22 in a year, your total return is 13%. That is, 10 % for the increase in stock price and 3% for the dividends paid. The higher the dividend a company pays, the greater the odds are for total return success.

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

We screened our 24/7 Wall St. high-yield dividend stocks research database looking for quality companies that pay at least an 8% dividend. Four standouts in their respective sectors hit our screens, and all make sense for those looking for passive income and have a somewhat higher risk tolerance. All of the companies are rated Buy at the top Wall Street firms we cover.

Why do we cover high-yield dividend stocks?

High-yield dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Apple Hospitality REIT

This company owns one of the largest portfolios of upscale, select-service hotels in the United States. Apple Hospitality REIT Inc. (NYSE: APLE) is a publicly traded real estate investment trust that pays a solid monthly dividend and stands out in the market with its unique offering.

The company comprises 224 hotels with more than 30,066 guest rooms in 87 markets throughout 37 states and one property leased to third parties.

Its hotel portfolio comprises 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels.

Its hotels operate primarily under Marriott or Hilton brands. They are operated and managed under separate management agreements with 16 hotel management companies, including:

• Hilton Garden Inn
• Hampton
• Courtyard
• Residence Inn
• Homewood Suites
• SpringHill Suites
• Fairfield
• Home2 Suites
• TownePlace Suites
• AC Hotels
• Hyatt Place
• Marriott
• Embassy Suites
• Aloft
• Hyatt House

Apple Hospitality hotels are in various states, including Alaska, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Kansas, Louisiana, Michigan, and others.

Bank of America has a Buy rating and a $17 target.

LyondellBasell

LyondellBasell Industries N.V. (NYSE: LYB) is a global leader in developing and supplying materials that enable packaging, health, and transportation solutions. This blue-chip chemical giant offers a long history of strong performance.

• The United States
• Germany
• Mexico
• Italy
• Poland
• France
• Japan
• China
• The Netherlands

The company operates in six segments:

• Olefins and Polyolefins-Americas
• Olefins and Polyolefins-Europe, Asia, International
• Intermediates and Derivatives
• Advanced Polymer Solutions
• Refining Technology

It produces and markets olefins and co-products, polyethylene and polypropylene, propylene oxide and derivatives, oxyfuels and related products, and intermediate chemicals, such as styrene monomer, acetyls, ethylene oxide, and ethylene glycol.

In addition, the company produces and markets compounding and solutions, including:

• Polypropylene compounds
• Engineered plastics, masterbatches
• Engineered composites, colors, and powders
• Advanced polymers, including catalloy and polybutene-1
• Refines heavy, high-sulfur crude oil, other crude oils, and refined products, including gasoline and distillates

Further, it develops and licenses chemical and polyolefin process technologies; manufactures and sells polyolefin catalysts; and serves food packaging, home furnishings, automotive components, and paints and coatings applications.

Wells Fargo has an Outperform rating with an $85 target price objective.

Starwood Property Trust

Starwood Capital is a well-established global investor with international investments spanning over 30 countries and is an affiliate with this high-yielding company, run by real estate legend Barry Sternlicht. Starwood Property Trust Inc. (NYSE: STWD) operates as a REIT in the United States, Europe, and Australia.

It operates through four segments:

• Commercial and Residential Lending
• Infrastructure Lending
• Property
• Investing and Servicing segments

The Commercial and Residential Lending segment:

• Originates, acquires, finances, and manages commercial first mortgages
• Non-agency residential mortgages
• Subordinated mortgages
• Mezzanine loans
• Preferred Equity
• Commercial mortgage-backed securities (CMBS)
• Residential mortgage-backed securities

The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments.

The Property segment primarily develops and manages equity interests in stabilized commercial real estate properties, including multifamily properties and commercial properties subject to net leases, which are held for investment purposes.

The Investing and Servicing segment:

• Manages and works out problem assets
• Acquires and contains unrated, investment grade, and non-investment grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions
• Originates conduit loans to sell these loans into securitization transactions and acquire commercial real estate assets, including properties from CMBS trusts

Wells Fargo has an Outperform rating to go with a $24 target.

USA Compression Partners

USA Compression Partners L.P. (NYSE: USAC) provides natural gas compression services under term customer contracts. While perhaps less known than their peers, this top company pays shareholders one of the largest dividends in the industry.

The company offers compression services to:

• Oil companies and independent producers
• Processors
• Gatherers
• Transporters of natural gas and crude oil, as well as operating stations

USA Compression Partners primarily provides natural gas compression services to infrastructure applications, including centralized natural gas gathering systems, processing facilities, and gas lift applications for crude oil wells.

Raymond James has another Outperform rating with a $30 target price on this company.

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