Pandemic stimulus controls helped millions of Americans through tough times. But if you hope for a fourth, you’ll be disappointed. Uncle Sam appears to be in no rush to make wider incentive payments.
Dividend checks, on the other hand, remain plentiful. Certainly, the stock market rally in recent years means that most companies are not yielding as high as before.
But if you’re willing to look beyond the best tickers, you can find companies that return generous amounts of cash to shareholders.
Here’s a look at three stocks with over-dividends. Remember you don’t have to start big. Today, you can build a passive income portfolio just by using your spare change.
JPMorgan Chase (JPM)
Let’s start with a bank stock.
With inflation soaring, people are concerned about Fed rate hikes. But it turns out that banks generally do well in an environment of rising interest rates.
JPMorgan Chase is the largest US bank, with a staggering $3.8 trillion in assets. The stock gained a lot of attention from investors, gaining 70% in the past year.
Business has improved greatly since the early days of the pandemic in 2020. In the third quarter of 2021, JPMorgan produced $3.74 per share in earnings, up 28% from $2.92 per share in the same period. was earned a year ago.
In June, the bank announced an 11% increase in its quarterly dividend rate to $1 per share.
It currently returns 2.3%, higher than what is offered at Goldman Sachs (1.9%), Bank of America (1.7%) and Wells Fargo (1.6%), but lower than Morgan Stanley (2 .7%).
While JPMorgan stocks trade for over $170 each, you can get a cut of the bank using a popular stock trading app that lets you buy fractional shares with as much money as you’re willing to spend.
Walgreens Boots Alliance (WBA)
Despite the frenzy in the market, not every stock rose. Walgreens, for example, has fallen more than 40% in the past five years.
Dividends, on the other hand, have only increased. In July, Walgreens increased its quarterly payout by 2.1% to about 48 cents a share, marking its 48th consecutive annual dividend increase.
If you look further back, you’ll see that the retail pharmacy giant has been paying uninterrupted dividends for over 88 years.
The company has a growing business to support its rising dividends. In the three months ended August 31, revenue from continuing operations grew 12.8% year over year to $34.3 billion. Meanwhile, adjusted earnings per share grew 29.5% to $1.17.
Today, Walgreens returns 4.1%, a generous amount compared to competitors like CVS Health (2.2%) and Walmart (1.5%).
Annaly Capital Management (NLY)
For the real yield hunters, Annaly Capital Management deserves a look.
The company is not nearly as well known as the above stocks, but it offers an astonishing annual return of 10.4%.
Structured as a real estate investment trust, Annaly is a diversified asset manager. The REIT invests in agency mortgage-backed securities, residential real estate, and mid-market lending.
Shares fell more than 50% during the pandemic-driven market crash early last year. Since then, Annaly has made a strong recovery and the stock is almost back to pre-COVID levels.
The REIT announced profits last week. For the third quarter, available-for-distribution earnings were 28 cents per share, covering the dividend 1.3 times.
In the earnings conference call, David Finkelstein, Chief Investment Officer and CEO, said, “We feel good about where earnings are this quarter, and we feel good about the dividend in 2022, sure.”
Collect rental checks without being a landlord
Owning real estate is one of the oldest ways to earn passive income.
But you don’t have to be a landlord to collect rent checks. And you don’t have to limit yourself to the stock market.
For example, some popular investment services allow you to capture a steady rental income stream by investing in prime real estate — from commercial developments in LA to residential buildings in NYC.
You get access to high-quality properties that are accessible to major real estate tycoons.
And the best part? You will receive regular payouts in the form of quarterly dividend payments without any headaches or hassles.
This article provides information only and should not be construed as advice. It comes without any kind of warranty.