The average money market is delivering a mere 0.6% dividend these days. And a lot of dividend stocks have been bid so high, their dividends are down and their prices are toppy.
That’s a strange place to be for investors looking for a decent return on their cash but who don’t want to chase expensive stocks.
These seven dividend stocks yielding over 5% are part of the solution. Some of these stocks are midstream energy players structured as limited partnerships. They deliver their net profits to shareholders in the form of dividends, and business is picking up.
Others come from various sectors and deliver big dividends because of the nature of their businesses.
Remember, buying dividend stocks is for long-term investing. There’s no point buying a company for its annual dividend if you only hold it a quarter or two. Although, given today’s measly returns on cash, it’s possible to do that with some of these stocks and make more cash in a quarter or two than a year in a money market.
With that in mind, let’s take a look at these seven dividend stocks yielding more than 5%:
- Blue Knight Energy Partners (NASDAQ:BKEP)
- Artisan Partners Asset Management (NASDAQ:APAM)
- China Yuchai International (NYSE:CYD)
- Natural Health Trends (NASDAQ:NHTC)
- Sprague Resources (NASDAQ:SRLP)
- SuRo Capital (NASDAQ:SSSS)
- SilverSun Technologies (NASDAQ:SSNT)
Dividend Stocks: Blue Knight Energy Partners (BKEP)
A smaller energy limited partnership, Blue Knight Energy Partners has more leverage in up (and down) markets. Right now, with oil prices high and demand rebounding as the pandemic loosens its grip, it’s a good time for BKEP.
It has terminalling operations (think tank farms) in 26 different states for liquid asphalt and crude oil. Essentially, these are way stations for the products before they’re moved along to customers. BKEP also has pipelines to move the oil and asphalt to the terminals.
Structured as a limited partnership, its net profits are distributed to shareholders as dividends, but the stock has been moving up as the energy markets have rebounded. And midstream companies act as toll-takers for energy, so when demand increases so does their revenue.
BKEP is up about 85% in the past year, and yet it still delivers a 7.66% dividend. But it only has an $84 million market capitalization, so don’t chase the stock.
Artisan Partners Asset Management (APAM)
This global investment management company has been around since 1994. Much of its client base is institutional clients, but it also offers a good selection of funds for individual investors as well.
Due to its institutional focus, its portfolios are generally set up for long-term capital appreciation, but that also includes dividend stocks and bonds. And the income it generates helps sustain its generous and solid dividend.
What’s more, the trend on Wall Street is to move more toward a long-term asset management model. With a $4.25 billion market cap, APAM is in a good position to be acquired by a larger investment firm or big bank.
The stock is up about 53% in the past year, yet its current price-to-earnings (P/E) ratio is under 15, and its dividend is at 5.6%.
China Yuchai International (CYD)
China Yuchai International has three divisions, and each seems to be an odd match for the other two. One division is a management consulting and accounting services company for Chinese firms.
Another division manufactures and sells diesel engines in the Chinese market. The third division owns and develops hospitality properties and other commercial properties in China and Malaysia. It is headquartered in Singapore.
That makes this company a significant player in the region on a few different levels. And while each division seems completely differentiated from the others, the fact is, each division is a play on the economic growth in China and the region in three very strategic sectors.
The stock is up 27% in the past year, has a current P/E of just 8.15 and has a 5.1% dividend. Analysts won’t pay much attention since it’s a confusing combination, but CYD has a lot of promise as a dividend stock and a regional growth play.
Natural Health Trends (NHTC)
While Natural Health Trends launched its personal care and beauty products in Hong Kong and mainland China, it has become a Delaware corporation and has a U.S. headquarters in Los Angeles.
With more than 20 years in the direct-to-consumer retail market, e-commerce has been a big boost to NHTC’s global business. It now sells its products in over 50 countries.
But this remains a small organization, with only a $72 million market cap. That means you don’t want to chase it. And while its 13.4% dividend is tempting, remember that its size makes it volatile. However, it’s also a tempting takeover target.
Sprague Resources (SRLP)
Looking for a dividend stock with a long history and a big dividend? Look no further. Sprague Resources has been around since 1870, and is headquartered in Portsmouth, New Hampshire.
Having been around this long you can assume that it provides essential services to northern New England and beyond. It buys, stores and distributes products like natural gas and refined oil products, as well as asphalt, coal, gypsum and heavy equipment.
Fundamentally, it’s an infrastructure company that has helped build up the region for over a century and a half. That gives it significant staying power. What’s more, it sticks to what it knows.
SRLP has a solid half-billion-dollar market cap and delivers a mouthwatering 12.8% dividend. The stock is up 28% in the past year, yet it trades at a P/E below 14.
SuRo Capital (SSSS)
If you were looking to get in on the tech boom with dividend stocks, this may be a stock to consider.
SuRo Capital is essentially a venture capital firm that invests in tech firms and then builds closed-end funds for investors to buy-in. Its main focus is online education companies, but it has significant positions in cloud computing, fintech and social/mobile services. It then bundles its positions into various closed-end funds to sell to retail and institutional investors.
Based in the San Francisco area, it has experience and reach into the financial community as well as Silicon Valley. It comes as no surprise that the stock is up 108% in the past year, given the transition into tech stocks. But what is surprising is it still has a 7% yield, and its P/E is around 17.
SilverSun Technologies (SSNT)
While its name might lead you to believe that this dividend stock has something to do with the solar industry, it doesn’t. It’s a business-management solutions company that helps small- to medium-sized businesses build out their tech infrastructure to maximize workflows and manage operations.
For example, SilverSun Technologies can come into a business, check out its operation, see where it is and where it wants to go and then develop an integrated technology plan to help it happen. It works with third-party vendors and can build out all aspects of operations, including cloud services and cybersecurity.
Bear in mind that SSNT only has a market cap of $22 million, so it’s tiny and doesn’t have any institutional backing due to its size. But it’s up 62% in the past year and is still toward the bottom half of its 52-week range.
It doesn’t have a quarterly dividend like most dividend stocks, but it issues a special dividend at the end of the year. That dividend for 2020 was 9.9%.
On the date of publication, Louis Navellier has positions in APAM and CYD in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.