While the stock market has remained largely resilient over the last year or so — quickly recovering from the initial pandemic-related disruptions of early 2020 and powering to another string of record highs — things have admittedly slowed down this summer.
In fact, since late April, the major stock market indexes have been largely flat thanks to ongoing concerns about inflation and overvalued stocks after the recent run-up. That is leading some investors to consider “risk off” trades that are less volatile.
The following five dividend stocks offer both impressive dividends of more than of 3% as well as strong share price performance in recent weeks to prove they may have more to offer in July and through the rest of 2021:
— B&G Foods (ticker: BGS)
— Broadstone Net Lease (BNL)
— EnLink Midstream (ENLC)
— Fortress Transportation and Infrastructure Investors (FTAI)
— The Macerich Co. (MAC)
[Sign up for stock news with our Invested newsletter.]B&G Foods (BGS)
Current yield: 5.77%
B&G Foods offers packaged foods under a host of brands including Crisco shortening, Ortega taco sauces and shells, and Green Giant canned vegetables.
Founded all the way back in 1889, the firm has a long history of providing strong consumer brands to grocery stores all over the nation and knows how to manage its finances to offer shareholders consistent payouts since going public in 2004. Dividends have increased more than 125% over the last 10 years, from 21 cents quarterly back in 2011 to 47.5 cents per share currently.
Shares are showing strong momentum lately with double-digit gains over the last month or so.
Broadstone Net Lease (BNL)
Current yield: 4.24%
Broadstone Net Lease is a real estate investment trust, or REIT. This special class of stock gets tax benefits for its property-heavy operations in exchange for a mandate to deliver 90% of taxable income back to shareholders.
What makes Broadstone interesting is the “net lease” in its name, where the tenant is actually on the hook for things like maintenance and taxes, and BNL simply cashes the rent check.
Adding even more stability to shares is the fact that Broadstone is focused on 660 or so single-tenant properties like free-standing Taco Bell restaurants or Family Dollar discount stores. These long-term leases with established corporations tend to be incredibly reliable, meaning the dividend is stable and secure.
EnLink Midstream (ENLC)
Current yield: 6.02%
EnLink is a “midstream” energy operator with a network of natural gas processing, transportation and storage across Texas, Oklahoma and Louisiana.
The company operates roughly 11,900 miles of pipelines, 22 natural gas processing plants and a fleet of trucks, barges and rail assets. The outlook on energy has been murky lately, thanks to commodity prices rallying in recent months on the prospect of higher inflation but then significantly pulling back lately on hints of higher interest rates from the Federal Reserve.
However, ENLC is insulated from price volatility as it’s basically a middleman in the supply chain. This has powered stable year-to-date share performance, as well as a generous and reliable dividend.
Fortress Transportation and Infrastructure Investors (FTAI)
Current yield: 3.82%
FTAI operates transportation-related terminals including industrial seaports and leases aircraft and engines to the aviation industry.
Though headquartered in New York City, main Fortress properties are located along the Ohio River and Gulf of Mexico. The company’s nearly 300 aviation assets serve a global customer base from Africa to Europe to South America.
The steady income generated from this reliable business fuels a generous dividend, and the recent return of cyclical economic activity including commercial flights and industrial activity has helped power Fortress stock to a new 52-week high recently.
The Macerich Co. (MAC)
Current yield: 3.38%
Macerich is another REIT for income investors to consider.
Beyond the attractive dividend stream, Macerich is a strong cyclical stock to buy right now thanks to its 51 million square feet of real estate that mainly consists of regional shopping centers and malls. In the wake of the pandemic and amid continued reductions of social distancing restrictions, in-person spending continues to look up as Americans with cabin fever get out and about more often.
With a resurgence in consumer spending as the pandemic continues to move into the rearview, MAC stock has risen 70% year to date — on top of a generous payout of 15 cents per quarter.
