Investing in dividend stocks can be a great way to build a steady income stream while also potentially achieving capital growth. Here are three top high-yield dividend stocks to consider for your portfolio this month.
Blue Owl Capital Corporation III (OBDE)
Blue Owl Capital Corporation III is a standout in the BDC sector, known for its defensive business model and robust portfolio of loans. With an impressive investment-grade balance sheet, conservative leverage ratio, and strong underwriting history, this stock offers a solid dividend yield of 9.3%, which can potentially reach 11% with special dividends.
Energy Transfer (ET)
Energy Transfer, a midstream infrastructure company, presents another high-yield opportunity with an expected dividend yield of 8%. Despite some valuation increase, Energy Transfer remains an attractive option with a well-covered payout ratio and the possibility of double-digit annualized returns.
EPR Properties (EPR)
EPR Properties, a triple-net lease REIT, is currently undervalued due to market concerns related to its theater properties. However, with a conservative AFFO payout ratio and strong diversification efforts, EPR Properties offers an appealing 8.3% dividend yield, potentially leading to annualized total returns exceeding 11%.
Investor Takeaway
By incorporating these three high-yield stocks - OBDE, ET, and EPR - into your investment portfolio, you can create a well-rounded portfolio with attractive yields and the potential for annualized total returns of 10% or more. Ensure to balance these high-yield options with lower-risk, higher-growth stocks to achieve a diversified portfolio with significant potential for both dividend growth and overall return.