These dividend stocks pay well.
With the stock market under some serious pressure, many investors have chosen to go "risk off" with their portfolio, moving assets into stable investments they can buy at a bargain price instead of chasing high-flying stocks that need to keep growing to please Wall Street. One of the hallmarks of a stable and low-risk investment is a juicy dividend. Besides payouts that hedge against share price declines, dividends indicate the company has a steady cash flow, which is necessary to support those dividends. If you're looking for dividend stocks in a time of market stress, here are seven high-yield options that could deliver decent returns even if their share price goes nowhere.
AllianceBernstein Holding (ticker: AB)
Asset manager AllianceBernstein caters to high net-worth individuals and institutional clients like pension funds. At the end of 2018, the company managed a massive $533 billion -- quite a hefty portfolio size and up from the prior month of October. That's no mean feat considering the very challenging market environment in October. Shares of AB stock are pretty sleepy, but the firm passes on a generous portion of its revenue from fees and operating charges to investors. Dividends typically fluctuate quarter to quarter, but the firm often offers a double-digit yield based on the last 12 months of distributions.
Current yield: 9.8 percent
Apple Hospitality REIT (APLE)
Structured as a real estate investment trust, Apple wins favorable tax treatment for its real estate intensive business but in return must pass on 90 percent of taxable income to shareholders. This is a win-win, because the Virginia-based hotel operator has been able to expand its portfolio to more than 30,000 rooms and over 240 hotels while consistently delivering impressive yield to its shareholders -- even as it has grown. Shares took a tumble at the end of 2018 amid the broader trouble for the stock market, and now investors with a long-term perspective would be well-served by considering a bargain buy in this high-yield stock.
Current yield: 7.9 percent
Buckeye Partners (BPL)
Another unique stock with a favorable tax structure is Buckeye, a partnership that is a midstream energy company. Buying land and erecting many miles of pipelines can be incredibly costly. To help support this industry, the IRS extends favorable tax structures -- so long as the partnerships return capital to investors in regular distributions. The result is a reliable income play, with more than 6,000 miles of pipelines and 100-plus delivery stations for liquid petroleum products. Buckeye collects a fee as it passes energy products through to its final destination. This added stability should help support its yield even as other energy stocks feel pressure.
Current yield: 9.4 percent
Midsized domestic telecom CenturyLink regularly makes lists of high-dividend stocks because its payout is through the roof. But income investors should remember part of the reason the yield is so high is because the share price has moved consistently lower. There are real fears the business isn't sustainable after taking on so much debt to acquire competitors, and that the dividend will have to be cut. The outlook for CTL is admittedly challenging, but a current payout rate that is more than four times the typical S&P 500 stock may make this high-risk pick worth it for the high reward.
Current yield: 13 percent
Ford Motor Co. (F)
Ford was the only one of the big U.S. automakers to avoid bankruptcy during the financial crisis. But things have changed considerably since the Great Recession, with auto sales peaking and innovative new technologies like electric vehicles and self-driving guidance threatening the old order of things. The stock has been beaten down lately as a result. Still, Ford's balance sheet is quite strong and dividend payouts of 60 cents annually per share remain less than half the predicted earnings per share of about $1.33 in 2019. The automaker has plenty of cash to support its generous dividends even if the near-term outlook for auto sales isn't as rosy.
Current yield: 7.1 percent
Fibria Celulose (FBR)
This Brazilian agricultural materials company specializes in fiber pulp used to make paper products for all manner of purposes worldwide. It's not a glamorous business, but it's an incredibly reliable one as paper is used in everything from books to packaging to cleaning products. And lest you think that digital technology has killed paper sales, consider FBR stock is up about 20 percent in the last 12 months even as other stocks have suffered. That indicates the reliability of its business. Just keep in mind that as an international stock it keeps to a twice yearly payout schedule instead of a quarterly payday like most U.S. corporations.
Current yield: 7.7 percent
Senior Housing Properties Trust (SNH)
Another high-yield REIT worth consideration is SNH, a company that owns and operates senior housing facilities across the country. With the aging demographics of America, this is almost a sure thing, long-term investment. There are some short-term pressures, such as fears over Medicare reimbursement rates and nagging investor uncertainty about other federal policies in general. But despite the turmoil in Washington, it seems highly unlikely that the demand for senior housing will wane. As a result, this is a high-yield dividend stock that investors can count on for years.
Current yield: 12.4 percent
7 stocks that pay at least 7 percent.
To recap, these stocks offer reliability and above-average income during a time of market volatility.
-- AllianceBernstein Holding (AB)
-- Apple Hospitality REIT (APLE)
-- Buckeye Partners (BPL)
-- CenturyLink (CTL)
-- Ford Motor Co. (F)
-- Fibria Celulose (FBR)
-- Senior Housing Properties Trust (SNH)