The markets have been doing well, and growth stocks have led the way. Why consider income stocks now?
Well, for two reasons.
First, many income stocks have gone unloved — and underappreciated — while investors have been focused and getting into the hot growth stocks.
Second, as the Federal Reserve starts to shift from its quantitative easing policy and back to a more normal central bank position regarding the economy, there will be a shift in asset classes through the end of the year. And income stocks may well be the winners.
There’s also no telling how well the U.S. and other countries are going to transition out of their nearly-decade-long easy-money policies. Some safety and security is always advisable when big transitions happen.
That’s why it’s a perfect time to explore these six A-rated dividend stocks to buy.
Dividend Stocks to Buy: Gaming and Leisure Properties (GLPI)
Gaming and Leisure Properties Inc (NASDAQ:GLPI) is structured as a real estate investment trust (REIT). And while it has 38 gaming facilities in 14 states, none of them are in Las Vegas. And that’s a good thing.
GLPI has concentrated its efforts in states where there’s less competition and it has better control of its resources and properties.
Now that the economy is regaining some steam, local casinos will see more action, as people are more likely to make a short trip to a casino in their state than they are to jump on a plane and stay in Vegas.
GLPI stock is up 21% year to date, on a steady upswing since March. But it still deals out a generous 6.8% dividend.
Dividend Stocks to Buy: Caretrust REIT (CTRE)
Caretrust REIT Inc (NASDAQ:CTRE) is trading near its 52-week highs, even as Washington continues to keep healthcare companies in constant turmoil with one attempt after another to dismantle Obamacare — with questionable replacements.
Just this week, another attempt to change the playing field has emerged in the Senate, and healthcare providers are scrambling to figure out if it’s a good or bad plan. And they need to weigh in next week.
But that really hasn’t changed the trajectory of CTRE, which owns and operates healthcare facilities in 23 states. Perhaps its continued strength has to do with the fact that it has been around for 55 years, and has found a way to succeed and grow through plenty of healthcare changes already.
Consider its 3.9% dividend payment for your patience as Washington deliberates.
Dividend Stocks to Buy: Coresite (COR)
CoreSite Realty Corp (NYSE:COR) is a REIT that owns and operates 20 data centers in eight key strategic markets in the U.S. Its customers include Verizon Communications Inc. (NYSE:VZ), Major League Baseball and Cars.com, to name a few.
Data storage — aka, server farms — is a massive new industry that has years of growth ahead simply because individuals, companies and governments are now comfortable with storing all (or most) of their data in the cloud so they can retrieve it regardless of where they are.
Mobility has become crucial, and we are now at a point where technology can deliver and manage huge amounts of data quickly and reliably. COR leases out its facilities to companies that don’t want to build, own or manage their own properties but need to have quality facilities.
COR stock is up almost 40% year to date and still provides a respectable 3.3% dividend. This is a major long-term total return play.
Dividend Stocks to Buy: Mobil’nye Telesystemy (MBT)
Mobil’nye Telesystemy PAO (ADR) (NYSE:MBT) is a Russia-based telecommunications firm.
While Russia and Ukraine aren’t the biggest growth markets in the world, they are consistent. And given the fact that most established companies have well-built competitive moats at this point, there’s far less chance that a small upstart is going to wrest control of the sector from the bigger players.
MBT stock is up over 25% in the past 12 months, and 12% year to date. That’s solid growth in this economy. And don’t forget the 8.8% dividend over the past year.
Even if the stock doesn’t grow like it has, that dividend is what you want, especially if the U.S. market gets turbulent.
Dividend Stocks to Buy: United-Guardian (UG)
United-Guardian, Inc (NASDAQ:UG) is a tiny company, sporting a market cap of $79 million. But don’t let the size fool you. UG has been around since 1942 and holds 30 patents in the pharmaceutical and health and personal space.
UG’s mission is product development, manufacturing and marketing of proprietary pharmaceuticals, cosmetic ingredients and healthcare products.
Traditionally, UG has focused on the U.S. market. But in recent years, UG has set its sights on Europe and Asia as well as Latin America. Emerging markets could be a game changer for the firm.
For now, it’s a solid company that has performed well year to date, with UG stock up 11% YTD. Then you add in the 4.9% dividend and you have generous return with a lot of potential growth. And even if the growth doesn’t happen, you have reliable company with a hefty dividend.
Dividend Stocks to Buy: The Carlyle Group (CG)
The Carlyle Group LP (NASDAQ:CG) is one of the biggest and most influential private equity firms in the world. Before sovereign wealth funds came along, CG was where the rich and powerful put their money, including the Saudi royal family, the Bush family and many others.
Just this week, former President Barack Obama gave a speech at the group’s D.C. headquarters. The group is very well connected with leaders around the world, which is especially helpful when looking for opportunities or managing investments.
What makes Carlyle Group even more attractive is its 4.8% dividend over the last 12 months — and that’s after a stunning CG stock run of nearly 61% year to date. That growth can’t be counted on to keep that pace, but that dividend should stay strong considering its clientele.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.