The comfort of a well-funded retirement can hinge on the use of high return stocks.
Knowing when and where to invest in hi-yield markets is a powerful tool that can keep anyone wealthy.
How do these high return stocks work? What are the best ones going into 2019?
We have all those answers and more below. Here is your guide to the high return stocks of 2019 and beyond.
The Power of High Return Stocks
When you invest your hard earned money, you want to know it will be secure and profitable.
The very idea of a high return stock is a showcase of that companies ability to keep a constant and secure profit margin. This profit then returns to investors in the form of dividends.
If you manage your money well with investments in high return stocks, your reward will be a solid flow of income well into your golden years.
What happens when you invest in the wrong stocks? What should you look for when looking to invest?
What to Look for in High Return Stocks
High return stocks that are worth investing in often represent mature and stable companies.
Stocks are often measured on their dividend yield. A dividend yield is the dividend of the company divided amongst its shares.
A company that can keep a high dividend yield is a stable company to invest in.
The standard yield which stocks measure against is 4%. If a company can keep above that level, then investors gain more and more confidence in its ability to keep providing that long term dividend.
If a stock starts to dip or, even worse, businesses that have landed on overall hard times. If a business hits hard but still shows good dividend yield, that is often a warning sign that things may not last and it may not recover.
It takes a lot of information to figure out which of these stocks to invest in.
Where to Go For the Best Stocks
You can find high return stocks in many forms and in many different markets. Here are some of the general areas to look for.
1. Real Estate Investment Trusts (REIT)
Real estate is often a stable business. The investment trusts build off a reliable income flow of rent among a large variety of tenants.
2. Master Limited Partnerships (MLP)
These investments focus on control of long-term assets. This is especially common in the energy industry. The strength of these is in a lack of income tax and steady income flow from energy usage.
3. Business Development Companies (BDC)
These are businesses exist for the sole purpose of channeling investments into businesses in need. They work as middle management for investments to create the most profit per dollar.
These are a few of the biggest examples. You can find high yield stocks in any type of business and market.
A List of the Best
Now that you know the risks and the rewards, let’s go over some of the top performers of the stock market.
1. Iron Mountain Incorporated (IRM)
Iron Mountain is a real estate investment firm that specializes in the storage and safekeeping of important documents.
The company has a massive real estate network. The network runs over 85 million square feet and covers over 1,400 facilities across the country.
Their biggest advantage is sheer diversity and importance. They have a massive variety of customers, many of whom are Fortune 1000 companies. Iron Mountain enjoys long term growth through its customer relations.
2. Brookfield Renewable Partners LP (BEP)
Brookfield is a long term trendsetter in the energy industry. It also is one of the largest sources of renewable energy in North America.
Brookfield is part of a vast corporate array of energy producers. Its focus on the booming renewable energy makes it a powerful contender in the energy market.
Brookfield has a strong eye on the future, making it an investment to keep an eye on.
3. Enterprise Products Partners LP (EPD)
Enterprise is among the largest integrated midstream energy companies in all of North America.
It combines sheer asset numbers with a heavy control of distribution. Enterprise has over 50,000 pipelines in its control and over 14 billion cubic feet of natural gas storage capacity.
4. Magellan Midstream Partners LP (MMP)
Magellan Midstream is a powerhouse of oil an energy distribution.
What sets Magellan apart is its investment-grade credit rating. It also has no incentive distribution rights, so its cash flow remains in-house at all times.
No matter fluctuating gas prices, Magellan has sheer numbers to sustain itself. Magellan owns half of the United State’s refining capability.
5. AT&T (T)
The world’s largest telecommunication company. AT&T made 160 billion dollars in revenue this last year alone.
AT&T creates a lot of its dominance through the mature and stable wireless market. Its diversity after that, such as business infrastructure and entertainment, give it plenty of punch no matter the market.
6. Enbridge (ENB)
Enbridge is one of the largest midstream energy companies in North America.
It is a conglomerate that has acquired many potent assets across the continent. As of 2016, it is also the largest natural gas supplier in Canada as well.
With such control over their assets, they are a sure-fire investment.
7. Main Street Capital Corporation (MAIN)
Main Street Capital is an investment firm specializing in funding for lower middle market companies.
Main Street has over 200 companies under its portfolio. Each of its investments numbers in the millions. With the sheer volume of assets, Main Street remains a powerful contender for high return stocks.
8. W. P. Carey (WPC)
One of the oldest REITs in the country. W. P. Carey has an astounding array of properties that it owns. As well, it has maintained a constant diversity in its portfolio.
W. P. Carey operates as a hybrid between REIT and a private equity fund. This allows it to have large bursts of growth at any given time. This is a powerful tool for investors to kickstart their gains.
Building for a Profitable Future
Investment is a very tricky process. Finding the right high return stocks requires a lot of finesse and careful planning.
Ensuring that you have a successful future is what we aim for at All Things Finance. Keep up all you need to know with our financial toolkit. With the right tools and information, you can succeed anywhere.
