High-yield stocks remain a cornerstone for income investors, particularly those looking to supplement retirement income. Three standout options in this space are Federal Realty (FRT), Enterprise Products Partners (EPD), and Ares Capital (ARCC), each catering to different investor profiles. Federal Realty boasts a remarkable track record as the only REIT with Dividend King status, offering a 4.1% yield backed by strategically located, high-demand properties.
Enterprise Products Partners, a major player in the midstream energy sector, mitigates commodity risk by charging fees for its infrastructure services, resulting in a solid 5.7% yield and a comfortable 1.7x coverage ratio for its distributions. In contrast, Ares Capital, a business development company, presents a riskier investment with a volatile dividend history, but its current yield of 10.5% can be appealing for those with sufficient income from other sources.
Investors should consider these options carefully, as they each serve distinct roles in a diversified income portfolio, especially in a low-yield environment like today’s S&P 500.
Source: fool.com