NEP - Got $1000 and Willing to Take on More Risk? These 2 Ultra-High-Yielding Dividend Stocks Could Turn It Into Over $100 of Annual Passive Income
2024-06-02 07:13:00 ET
A double-digit dividend yield is typically a red flag. It suggests investors don't believe the payout is on solid ground due to the company's financial troubles. More often than not, stocks with double-digit yields end up cutting or suspending their dividends.
However, that's not always the case. Some companies can navigate their rough patches without cutting their payouts. NextEra Energy Partners (NYSE: NEP) and Medical Properties Trust (NYSE: MPW) believe they can maintain their big-time dividends. If they can, investors stand to generate lots of income. Here's a look at what drives those views and what could go wrong.
NextEra Energy Partners' dividend currently yields more than 10%. At that rate, it could turn a $1,000 investment into over $100 of annual dividend income. The renewable energy producer backs that payout with relatively stable cash flow produced by selling power to utilities and large corporate buyers under long-term, fixed-rate contracts.
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Got $1,000 and Willing to Take on More Risk? These 2 Ultra-High-Yielding Dividend Stocks Could Turn It Into Over $100 of Annual Passive Income