High Dividend Stocks Outperform Bonds: Kinder Morgan… – Investing.com

Investors looking to generate income are turning to high-dividend stocks as an alternative to bonds. Three companies that offer higher income yields than many high-quality fixed income investments are Morgan Kinder (NYSE:KMI), Verizon (NYSE:VZ) and WP Carey. Dividends from these companies not only provide a steady income stream, but are also expected to increase in the future.

On Monday, Kinder Morgan, a NYSE-listed pipeline giant, was highlighted for its 6.6% dividend yield. This yield exceeds the yield of most high-quality bonds, including 10-year U.S. Treasury bonds and mid-grade corporate bonds. Over the past six years, the company’s dividend has been on an upward trend, with a recent 2% increase for 2023. After paying dividends, Kinder Morgan retains half of its stable cash flow, which is primarily reinvested in expanding its energy infrastructure operations. The company plans to invest approximately $2.1 billion this year in various capital projects such as pipeline expansion and renewable natural gas production facilities.

NYSE-listed telecommunications giant Verizon offers a dividend yield of 7.9%. The company recently marked its 17th consecutive year of dividend growth with a 1.9% increase. Following a $10 billion spending program to bolster its 5G network plans, Verizon expects to free up about $1.8 billion in cash flow each quarter. This will initially be used to strengthen its strong investment grade balance sheet. The company’s investments in 5G and cost reduction initiatives are expected to increase revenue and reduce interest expense, respectively, leading to increased free cash flow.

WP Carey, a diversified real estate investment trust (REIT) listed on the NYSE, offers a dividend yield of 6.7%. Since its IPO in 1998, the company has increased its dividend payout every year. It generates constantly increasing rental income from its extensive real estate portfolio through long-term net leases with tenants. These leases often include an annual rent indexation clause linked to the inflation rate or a fixed rate. WP Carey’s growth is driven by acquisitions of income-producing real estate through sale-leaseback transactions, build-to-suit development projects and single-tenant net lease properties.

In a context where investors are looking for dividends that offer higher yields than many bonds, these three companies stand out. Their payouts are expected to increase over time, potentially offsetting the impact of inflation on purchasing power.

This article was generated with the support of AI and reviewed by an editor. For more information, consult our General Terms and Conditions.

Investors looking to generate income are turning to high-dividend stocks as an alternative to bonds. Three companies that offer higher income yields than many high-quality fixed income investments are Morgan Kinder (NYSE:KMI), Verizon (NYSE:VZ) and WP Carey. Dividends from these companies not only provide a steady income stream, but are also expected to increase in the future.

On Monday, Kinder Morgan, a NYSE-listed pipeline giant, was highlighted for its 6.6% dividend yield. This yield exceeds the yield of most high-quality bonds, including 10-year U.S. Treasury bonds and mid-grade corporate bonds. Over the past six years, the company’s dividend has been on an upward trend, with a recent 2% increase for 2023. After paying dividends, Kinder Morgan retains half of its stable cash flow, which is primarily reinvested in expanding its energy infrastructure operations. The company plans to invest approximately $2.1 billion this year in various capital projects such as pipeline expansion and renewable natural gas production facilities.

NYSE-listed telecommunications giant Verizon offers a dividend yield of 7.9%. The company recently marked its 17th consecutive year of dividend growth with a 1.9% increase. Following a $10 billion spending program to bolster its 5G network plans, Verizon expects to free up about $1.8 billion in cash flow each quarter. This will initially be used to strengthen its strong investment grade balance sheet. The company’s investments in 5G and cost reduction initiatives are expected to increase revenue and reduce interest expense, respectively, leading to increased free cash flow.

WP Carey, a diversified real estate investment trust (REIT) listed on the NYSE, offers a dividend yield of 6.7%. Since its IPO in 1998, the company has increased its dividend payout every year. It generates constantly increasing rental income from its extensive real estate portfolio through long-term net leases with tenants. These leases often include an annual rent indexation clause linked to the inflation rate or a fixed rate. WP Carey’s growth is driven by acquisitions of income-producing real estate through sale-leaseback transactions, build-to-suit development projects and single-tenant net lease properties.

In a context where investors are looking for dividends that offer higher yields than many bonds, these three companies stand out. Their payouts are expected to increase over time, potentially offsetting the impact of inflation on purchasing power.

This article was generated with the support of AI and reviewed by an editor. For more information, consult our General Terms and Conditions.