In a bullish or bearish stock market, it is always a great time for investors to buy into stocks that offer great dividend yields. That’s because it is a stable stream of income, and unless a company decides to lower its overall yield, dividend income will remain stable even in a bearish market.
A few sectors typically offer greater dividend payouts to investors, such as Real Estate Investment Trusts (REITs). They are legally obligated to give investors 90% of their taxable income back to investors in the form of dividend payments. Other industries offering higher-than-average dividend payouts are financial services and utilities companies.
Below are companies for investors seeking great options for dividend stocks that are also strong buys on top of increased returns from stock price appreciation.
Innovative Industrial Properties (IIPR)
Innovative Industrial Properties (NYSE:IIPR) is the largest supplier of real estate capital to the regulated cannabis industry, with over 100 properties in 19 states.
Over the past six months, IIPR has seen its share price increase by 19% following dividend increases and a recent earnings beat that excited investors.
Innovative Industrial Properties saw consistent dividend growth over the last six years and continued the trend with the recent news that it raised its dividend ratio by 1.1% to 7.37% annually. The dividend payout to investors is now $1.82 per share quarterly.
On Nov. 1, IIPR reported earnings results for the third quarter of 2023, stating total revenue and earnings per share rose by 10% compared to the previous year. After this report, its share price spiked due to better-than-expected results regarding revenue and expense totals.
Its stock came alive in recent months with improved financial and strategic acquisitions and dividend increases. That followed a period of uncertainty regarding its stability after being downgraded by Piper Sandler (NYSE:PIPR) in June 2023 and issues regarding tenant delinquency.
Manulife Financial (MFC)
Manulife Financial (NYSE:MFC) offers financial services and products such as asset management, annuities, financial planning and multiple types of life insurance. Manulife also provides corporate services such as property insurance and business management services.
The company offers investors a dividend yield on an annual basis of approximately 4.84%. It is distributed quarterly for 30 cents per share. And MFC has also seen consistent dividend increases for a decade now.
On Feb. 14, it announced earnings for the fourth quarter of 2024, showing net income rose by 81% compared to the year before, along with a 9.6% increase in its dividend payout.
In December 2023, Manulife announced it entered into a partnership with Scannell Properties and StepStone Real Estate, totaling $1.2 billion, to allow for the restructuring of industrial assets.
Following its recent earnings report, its share price increased 10%; over this past year, it grew 26%. Manulife has experienced impressive growth due to an earnings beat and dividend increases. And that makes it a great option for a strong buy, high-dividend yielding company.
Park Hotels & Resorts (PK)
Park Hotels & Resorts (NYSE:PK) is a REIT that owns and operates over 40 hotels and 12 resort locations. PK also has affiliate deals with brands such as Hyatt, Hilton and Marriott. All of its portfolio is in the U.S., particularly major city centers.
Park Hotels offers investors a huge dividend yield of approximately 24.5% and is paid out quarterly for 93 cents per share.
Barclays (NYSE:BCS) recently upgraded Park Hotels & Resorts from Equalweight to Overweight and raised its price target to $19 per share.
On Jan. 22, the company released fourth-quarter full-year earnings results for 2023, showing operating income increased threefold, and earnings per share nearly grew fivefold compared to the previous year.
Park Hotels & Resorts’ share price grew over 19% within the last six months due primarily to its earnings beat following the Q3 earnings report. Park Hotels’ large dividend payout and Strong Buy rating make it a perfect choice for investors looking for solid companies with impressive dividends.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
