Buy the fear like Warren Buffett. Here are 3 top stocks that yield a whopping 9.2% — so you can ‘make your money from inactivity’

Buy the fear like Warren Buffett.  Here are 3 top stocks that yield a whopping 9.2% — so you can 'make your money from inactivity'

Buy the fear like Warren Buffett. Here are 3 top stocks that yield a whopping 9.2% — so you can ‘make your money from inactivity’

Everyone wants to buy low and sell high. But it’s a lot easier said than done, especially in a falling market. The S&P 500 is down 16.5% year to date.

But you don’t need a recovering market to make money in stocks. You can also collect dividends.

Instead of trying to pin down a stock’s next rise or fall, dividend investors can just sit back, relax and let the dividend checks roll in.

After all, Warren Buffett once said, “Wall Street makes its money from activity. You make your money with inactivity.”

Do not miss it

It’s hard to be a buyer of something in a market where everyone seems to be selling in a panic. But then again, being contrarian is exactly how many investors became successful.

“Be afraid when others are greedy and greedy when others are afraid.”

That is perhaps Buffett’s most famous quote.

With that in mind, here’s a look at three companies that are delivering oversized dividend checks to investors. Wall Street also sees an advantage in this trio.

AT&T (T)

We pay our cell phone bills and internet bills every month. If you want to retaliate, consider collecting dividends from companies that provide these services.

AT&T, for example, is one of the largest telecommunications companies in the world. More than 100 million consumers in the US use mobile and broadband services. At the same time, the company also serves almost all Fortune 1000 companies with connectivity and smart solutions.

And because wireless and Internet services are necessary for the modern economy, AT&T generates a recurring business through thick and thin.

The company pays quarterly dividends of 27.75 cents per share, which translates to an annual return of 5.9%.

Raymond James analyst Frank Louthan has a strong buy rating on AT&T and a price target of $24. Given that AT&T shares are currently trading at around $18.90 each, the price target implies a potential upside of 27%.

Property Income (O)

Realty Income is a real estate investment fund with a portfolio of more than 11,700 properties on long-term leases.

Top tenants include big names like Walmart, CVS Pharmacy and Walgreens – companies that have survived through thick and thin and are thriving.

In fact, the REIT claims it receives about 43% of its total rent from tenants with good investment grades. A diversified, high-quality tenant base enables Realty Income to pay reliable dividends.

Read more: Trade up while the market is low: Here are the best investing apps to seize once-in-a-generation opportunities (even if you’re a beginner)

In addition, while most dividend-paying companies follow a quarterly distribution schedule, Realty Income pays its shareholders each month.

The stock is currently yielding 4.6%.

Morgan Stanley analyst Ronald Kamdem has an overweight Realty Income rating and a price target of $74 – about 13% above current levels.

MPLX (MPLX)

MPLX is not a concept like AT&T. But for the serious yield hunters, it’s a stock that probably shouldn’t be ignored.

Headquartered in Findlay, Ohio, MPLX is a master limited partnership established by Marathon Petroleum to own, operate, develop and acquire midstream energy infrastructure assets.

The partnership pays quarterly cash benefits of 77.50 cents per unit. With the stock trading at $33.73, that translates to a hefty 9.2% annual dividend yield.

In the third quarter, MPLX generated $1.26 billion in distributable cash flow, which was 1.58 times the cash distribution coverage for the quarter.

The stock is also up 12.8% year to date, in stark contrast to the S&P 500’s double-digit loss over the same period.

Wells Fargo analyst Michael Blum sees further upside potential on the horizon. Blum has an overweight rating on MPLX and a price target of $40, about 19% upside from where the stock stands today.

What to read next

  • More than 65% of Americans don’t look for better auto insurance – and it could cost you $500 a month

  • Want to invest your spare change but don’t know where to start? There’s an app for that

  • Mitt Romney says a billionaire tax will boost demand for these two assets – get in now for the super-rich swarm

This article provides information only and should not be taken as advice. It comes without any kind of warranty.

Leave a Reply

Your email address will not be published. Required fields are marked *