The money we make will never be enough, and so we toil every day to accumulate even more. While some opt for active income those, who have discovered the fruits of passive income prefer it. Therefore, here are five reliable stocks with dividends over 5% that will ensure your passive income grows even in the long term.
1. The Kraft Heinz Company (KHC)
Kraft Heinz Company is the third largest company in the U.S in the food and beverage sector, and the fifth largest worldwide. KHC is the result of a merger that happened in 2015 between H.J. Heinz Company and Kraft Food Company. The primary objective of merging was to have higher margins, lower costs and increased efficiencies, all of which the company has been able to achieve since it now has operating margins ranging in the mid-20s. Its dividend yield recently hit 6%, which makes it among the highest dividend yields among consumer staples companies. However, investors have to be careful because the payout is high since the firm stripped 45% of its value last year. As customers are becoming more health-conscious, Kraft Heinz has struggled with the lower demand due to shifting preferences. Therefore investors who are interested in the long-term returns can consider buying this stock.
2. Blackstone Group (BX)
Blackstone Group, the largest alternative investment company worldwide, focuses on credit, hedge fund, and private equity investment strategies. Currently, the firm has a dividend yield of 6.9%. The firm has increased its dividend payout in the last six years, setting a trend that most investors find impressive. Its current yield is almost twice as much as that of the industry average which sits at 3.14%. By the last month, BX had scored six consecutive buy ratings making it a strong buy stock.
3. AT&T (T)
For any investor looking for a reliable stock, then AT & T should top their list. Its dividend yield now stands at 6.7%, and it has been increasing its annual payout steadily over the past 34 years. Moreover, its financial statements portray a stable financial position. However, the debt it has may throw off some investors seeing that it amounts to about $180 billion. Such liability may only mean that the payout, though it will likely it will be at a slower pace than before. The company continues to generate cash flows despite the stiff competition from mobile wireless firms. Besides, it has other things playing in its favor such as the 5G coverage, launching its streaming service, new advertising opportunities and many more. With such things going for it, the company’s stock is worth buying. Besides, even one Oppenheimer analyst reveals that it has a bullish market and the share could go up to $41.
4. HCP Inc. ( HCP)
When looking for a stock that has lots of potential hence more room for more significant returns, then HCP is one to consider. One of the reasons for the guarantee is that the healthcare industry does not get affected by the recession since a sick person will seek treatment whether the economy is on a recession or not. HCP’s portfolio comprises of medical offices, senior housing and life science properties which are all divided evenly. In the United States, the population of senior citizens is expected to almost double in the next 35 years, and since older people tend to need healthcare more, they will spend more meaning HCP Inc. has a bright future for its investors. The firm has reduced its borrowing costs because it did away with the skilled nursing portfolio. The move also led to the improvement of its credit rating. Therefore, with such high-yielding properties, and the over 5% dividend yield, any prudent investor will find HCP’s stocks a strong buy.
5. Six Flags Entertainment (SIX)
More than four analysts consider SIX a strong buy and even Timothy Conder from Wells Fargo who had previously recommended that investors should hold has reversed his decision to make it a buy too. The company has a 5.3% dividend yield compared to the industry average of 1.99%. Its dividend growth has established a good track record in the last nine years. This improvement is significant considering that in April 2010, it was going bankrupt but being under new management has done wonders for SIX.