The Best High-Yield Stocks to Buy With $500 Right Now

• Dividend investors often absorption excessively overmuch attraction connected yield, overlooking evident signs of risk.

• You tin get yields arsenic precocious arsenic 12.5% from existent property concern trusts.

• Dividend investors volition apt beryllium amended disconnected with little yields similar the ones offered by these 2 highly reliable REITs.

• 10 stocks we similar amended than AGNC Investment Corp. ›

I'm a dividend investor, and I cognize what it feels similar to research stocks offering a double-digit yield. You privation to judge it is simply a diamond successful the unsmooth that volition wage you 10%-plus dividends forever. Those situations bash occur, but not precise often. Whether you person $500 oregon $5,000 to put successful dividend stocks close now, you request to marque definite you absorption connected reliable dividend payers.

Real property concern trusts (REITs) are designed to walk income connected to investors successful a tax-efficient manner. They debar corporate-level taxation if they wage retired astatine slightest 90% of their taxable income arsenic dividends. The offset is that shareholders person to study the dividends arsenic if they were earned income (taxes tin beryllium wholly avoided by owning a REIT successful a Roth IRA). Generally speaking, REITs wage charismatic dividends and person comparatively ample dividend yields.

If you are trying to unrecorded disconnected the income your portfolio generates, REITs should beryllium successful the mix. However, conscionable similar non-REITs, you person to beryllium cautious astir which companies you buy. Some REITs person awesome dividend histories, portion others person volatile dividend histories. Some REIT concern models, by design, wage adaptable dividends.

If dividend consistency is your apical priority, determination is 1 REIT that stands supra each others: Federal Realty (NYSE: FRT). It has accrued its dividend annually for 58 consecutive years, which makes it a Dividend King. That is the longest dividend streak successful the REIT sector, and Federal Realty is the lone REIT to person achieved Dividend King status.

Federal Realty achieved this extremity by focusing connected prime implicit quantity. It owns astir 100 portion malls and mixed-use assets. They thin to beryllium located adjacent ample colonisation centers that person precocious concentrations of wealth. Furthermore, Federal Realty is an progressive portfolio manager, continually making superior investments to heighten the worth of its properties. It is besides consenting to merchantability assets that person reached their afloat potential, truthful it tin bargain caller properties that request a small love.

Federal Realty's dividend output is 4.4% today. That is astir 4 times higher than the 1.1% output of the S&P 500 (SNPINDEX: ^GSPC) scale and supra the 3.9% REIT average. For astir dividend investors, Federal Realty volition beryllium a coagulated portfolio holding, with $500 netting you astir 4 shares of this reliable dividend stock.