Bad news tends to overshadow good news. This is especially the case when there has been a lot of bad news in recent weeks as we have experienced. However, there is also good news. The main stock indices are up. None of them are currently in a bear market – and the S&P500 is no longer in correction territory.
Income investors in particular could have a great opportunity to lock in attractive dividend yields at this time. Here are three high-yielding dividend stocks to buy during a market rally.
1. Enterprise Product Partners
Enterprise Product Partners (EPD 0.19% ) did not sink like most stocks have in recent months. Shares of the leading midstream energy company are up nearly 18% year-to-date.
This solid gain makes sense given the current global dynamics of the oil and gas industry. Prices rose in part due to concerns over the Russian invasion of Ukraine. However, demand for oil and gas has also increased as the global economy recovers from the impact of the COVID-19 pandemic.
Enterprise has been a major beneficiary of these tailwinds with its pipelines, natural gas processing facilities and storage facilities. It should also benefit more if the stock market continues to rebound and if economic uncertainties fade. But even if it doesn’t, Enterprise is a title that should hold up well no matter what the market does.
The company offers a hefty 7.2% dividend yield. Enterprise has also increased its distribution for 23 consecutive years. There aren’t too many high yielding dividend stocks with such an impressive track record.
2. Medical Properties Trust
Medical Properties Trust (MPW 1.89% ) the stock did not fare as well. Its shares are still down about 9% year-to-date after starting to rebound in mid-March. However, the underlying business of the company has not budged.
This underlying business is the ownership and leasing of hospitals. Medical Properties Trust is a Real Estate Investment Trust (REIT) with approximately 440 properties in its portfolio. About 60% of these properties are in the United States, and the remaining hospitals are in eight other countries, mostly in Europe.
As you would expect, Medical Properties Trust’s rental income does not rise or fall with stock market fluctuations. Higher inflation rates shouldn’t be a big deal either. The REIT has incorporated rent indexations based on the consumer price index into more than 99% of its leases.
REITs are known for their dividends. Medical Properties Trust is no slouch on this front. Its dividend yield currently stands at nearly 5.5%. The company has increased its dividend for eight consecutive years.
Verizon Communications (VZ 2.32% ) boasts a distinction that very few high-yielding dividend stocks have: it’s one of Warren Buffett’s favorites. The telecom giant ranks eighth in holdings Berkshire Hathawayportfolio of.
Should you buy Verizon just because Buffett likes it? Of course not. However, it’s a good idea to at least consider what an investor like the Oracle of Omaha might find attractive about Verizon.
The dividend certainly stands out. Verizon’s dividend yield exceeds 5%. The company has increased its dividend for 15 consecutive years. Verizon should easily be able to maintain that streak with a payout rate below 48%.
Of course, Verizon probably won’t deliver explosive growth. However, the company might have better growth opportunities than you think with its high-speed 5G network, especially to expand further into the home internet market. There’s more good news for Verizon than bad news.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.