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Barron's: 5 High-Yield Stocks That Can Keep on Giving

Barron's: 5 High-Yield Stocks That Can Keep on Giving

By    |   Monday, 04 November 2019 09:05 AM

Barron’s recently crunched the numbers and came up with a handful of high-yielding stocks poised to keep offering hefty payout into the near future.

“There are more than two dozen S&P 500 stocks that pay 5% or more, and it would be a bad idea to invest in all of them. High yields are often a sign that investors doubt payments are safe,” Barron’s said. “When looking for bargains, use a guilty-until-proven-otherwise approach.”

AT&T (T) offered three-year financial guidance as part of a truce with an activist investor and said it sees dividends consuming less than half of free cash flow by 2022. “That makes the current yield—an outsize 5.3%, even after a 36% run-up for the stock price this year—look credible,” Barron’s said.

A recent search for other high-yield stocks whose payouts look sustainable “turned up oilfield services company Schlumberger (SLB), drugmaker AbbVie (ABBV), mall operator Simon Property Group (SPG), and records-storage specialist Iron Mountain (IRM),” Barron’s said.

To be sure, investing guru and one-time "bond king" Bill Gross is warning investors to beware of slow growth and sluggish markets.

To survive such a treacherous investing environment, he recommends dividend-paying stocks over negative-yielding debt.

In his first investment outlook since retiring in March, Gross said on Tuesday that with trillions of dollars in debt offering negative yields, investors should be holding stocks that promise secure dividend payouts, the Financial Times explained.

“In the absence of substantial fiscal stimulation, the economic and asset boost from negative interest rate yields may have reached an end,” he said in a commentary on his website.

“Prepare for slow economic growth globally and an end to double-digit market price gains of months and years past. High yielding, secure-dividend stocks are what an astute investor should begin to own,” he said.

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Barron’s: 5 High-Yield Stocks That Can Keep on Giving
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Monday, 04 November 2019 09:05 AM
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