Although nothing is certain in the market, some stocks can help investors maximize their retirement incomes. These reliable stocks have a solid dividend history, allowing investors to collect passive income.
Realty Income is structured as a real estate investment trust (REIT) and is known for its dependable dividend.
Referred to as “the Monthly Dividend Company,” Realty Income is a member of the S&P 500 Dividend Aristocrats. Since its founding in 1969, the company has declared 627 consecutive common stock monthly dividends and has increased its dividend 117 times since its 1994 public listing.
The company has 53 years of real estate investing experience and has shown that it can weather the storm, making it a virtual no-brainer pick for retirement portfolios. While the economy and rising rates could put pressure on Realty Income short term, the REIT is positioned to continue generating solid investment returns.
Based on the current share price, Realty’s dividend yield is 4.8%, supported by the cash flow from over 11,400 real estate properties. A primary reason the REIT is so dependable is Realty Income’s high occupancy rate and diverse portfolio.
Many of the thousands of commercial properties it owns are in somewhat recession-resistant industries like convenience stores and low-cost retail. Some of its clients include Dollar Tree, Walgreens, and CVS Health. Plus, these clients cover their own insurance, maintenance, and property taxes, reducing Realty Income’s financial responsibility.
Realty Income has demonstrated consistent growth and, for decades, has provided investors with a reliable source of passive income. This REIT is a quality business currently selling for a bargain price.
Near-term headwinds may create an even better buy-the-dip opportunity, so to minimize risk, you could buy a few shares monthly, benefiting from dollar-cost averaging. However, you can feel good about buying into Realty Income now, as shares are down over 13% year-to-date. Not only is it an opportunity to buy at discounted prices but it’s beating the S&P 500 performance on a relative basis.
Enterprise Products Partners
If you’re looking for a time-tested stock that has the potential to 3x by 2030, this energy company is worth your attention.
Enterprise Products Partners is one of North America’s largest midstream oil and gas companies. Although oil and gas stocks aren’t the most conventional pick for retirees lately, since the demand for oil and gas plunged at the beginning of the pandemic, Enterprise Products Partners is unique.
In addition to being a quality dividend stock, Enterprise has built a solid business with a market cap of over $50 billion. The company owns the assets that help move oil and natural gas from the extraction site to where materials get refined and shipped, including over 50,000 miles of transmission pipeline and 14 billion cubic feet of natural gas storage space, plus deepwater docks and two dozen natural gas processing facilities.
Notably, the pandemic barely affected Enterprise Products Partners operationally because the company acts as an energy middleman. This energy giant uses fixed-fee or volume-based contracts, so it is not bound to the volatile and deep price swings associated with oil and gas. As an investor, this is attractive because it makes Enterprise Products Partners’ cash flow more predictable. The company can effectively plan infrastructure projects and acquisitions without affecting its dividend payouts or profitability.
As a retiree, this stock is attractive because it offers a reliable source of passive income. For the past 24 years, the company has increased its annual base distribution. The current 8% annual dividend yield is believed to be sustainable, making Enterprise a winning pick.
Enterprise showcases a substantial list of positives, especially for those seeking a high-yield dividend investment. The company has consistently demonstrated a stable earnings profile and has provided investors with a reliable dividend yield. While the price of shares is currently up over 4% year-to-date, it is still trading significantly lower than the stock’s 52-week high. When the goal is to collect passive income, now might be the time to start buying a few shares, adding to your portfolio over time.