How can I generate some steady income in this manic market? Here are 3 top-rated stocks yielding up to 8.7% (with fat upside to boot)
It’s a scary time for stock market investors. The S&P 500 is down about 20% year to date, while the Nasdaq Composite plunged 28%.
But you don’t necessarily need a rallying market to make money in stocks — you can also collect dividends.
Healthy dividend stocks have the potential to:
Offer a plump income stream in both good times and bad times.
Provide much-needed diversification to growth-oriented portfolios.
Outperform the S&P 500 over the long haul.
While the prevailing sentiment is far from bullish, Wall Street still likes dividend stocks. Here are three that analysts find particularly attractive.
Let’s start with a household name.
AT&T is one of the largest telecommunications companies in the world. More than 100 million consumers in the U.S. use its mobile and broadband services. At the same time, the company also serves nearly all of the Fortune 1000 companies with connectivity and smart solutions.
And because wireless and Internet services are necessities for the modern economy, AT&T generates a recurring business through thick and thin.
The company pays quarterly dividends of 27.75 cents per share, translating to an annual yield of 5.4%. To put things in perspective, the average S&P 500 company yields just 1.7%.
Earlier this month, Raymond James analyst Frank Louthan reiterated an ‘outperform’ rating on AT&T. He has a price target of $26 – roughly 27% above where the stock sits today.
Simon Property Group (SPG)
Real estate has been a popular inflation hedge throughout history. Not only do real estate prices tend to increase in an inflationary environment, but rental properties can also generate a stable income stream for investors.
These days, you don’t need to be a landlord to collect rent checks. Publicly traded real estate investment trusts own and operate income-producing properties on investors’ behalf.
Simon Property, for instance, owns commercial real estate — shopping malls,…