The Top 10 High-Dividend Stocks with Growing Payouts

Growing payout

Top High-Dividend Stocks for 2017

Finding a high-dividend stock is quite easy; the more difficult search would be finding a company that would be a growing high-dividend stock. That’s because many high-dividend-paying stocks pay a large percentage of their earnings, which means less money is retained to grow the business. This makes it more difficult for the company to increase the dividend.

A growing business and receiving a higher dividend go hand-in-hand. That’s why when I conducted my research to find companies that would be considered growing high-dividend stocks, I focused on how shareholder-friendly the company has been.

To determine this, I took a look at how money was returned to shareholders—in other words, the dividend payment history. I also went beyond this and took a look at how excess capital was used for rewards in the form of share repurchases and special dividend payments, if any.

Below is a list of 10 stocks that would meet the requirements of a growing high-dividend stock.

Top 10 High-Dividend Stocks for 2017

Ticker Name Price Dividend Yield
LVS Las Vegas Sands Corp. $55.61 5.18%
GOV Government Properties Income Trust $19.64 8.76%
TCP TC Pipelines, LP $58.61 6.38%
BPY Brookfield Property Partners LP $22.26 5.03%
GLPI Gaming and Leisure Properties Inc $31.08 7.72%
EEP Enbridge Energy Partners, L.P. $25.74 9.06%
SNH Senior Housing Properties Trust $19.29 8.09%
STX Seagate Technology PLC $38.13 6.61%
TIS Orchids Paper Products Company $26.27 5.33%
TUP Tupperware Brands Corporation $53.88 5.05%

1. Las Vegas Sands Corp. (NYSE:LVS)

LVS stock is currently trading at $55.61, which is offering a dividend yield of 5.18%. Since 2013, the dividend payment to shareholders has more than doubled.

In 2012, the management team rewarded shareholders with a special dividend. Such a dividend is not seen very often and is in addition to the regular dividend. In this case, it was for $2.75, which was 11 times the regular dividend that was paid at the time.

Since 2013, $2.4 billion has been returned in the form of share buybacks. The benefit to shareholders is that fewer shares are outstanding, which results in each remaining share being worth more on a percentage basis. (Source: “Stock Repurchase History,” Las Vegas Sands Corp., last accessed January 9, 2017.)

For the shareholder rewards to continue, earnings growth is needed. For LVS stock, the growth is expected to come from China, which accounts for approximately 55% of earnings. China is expected to see double-digit growth, which is higher than the single digits that are expected to be seen from the company’s home country, the U.S. (Source: “3Q16 Earnings Call Presentation,” Las Vegas Sands Corp., November 3, 2016.)

2. Government Properties Income Trust (NASDAQ:GOV)

Government Properties Income Trust receives 93% of its revenue from its primary tenant, the U.S. government. The company has great visibility for its cash flows because the leases are for 10–20 years, which is higher than the typical lease agreement. Also, having the U.S. government as the primary tenant is a positive because that means there no worry about them going out of business anytime soon. There are currently 72 properties spread across the country in the company’s portfolio.

The dividend is paid on a quarterly basis, with a current yield of 8.76%; the yield is calculated using the current trading price of $19.64. Even though GOV stock is a high-dividend stock, the dividend has seen an increase four times since 2009.

3. TC Pipeline LP (NYSE:TCP)

TCP stock operates in pipelines, which has the most reliable cash flow when it comes to companies in the energy sector.

TCP operates in a sector that would be considered as a high barrier to entry environment. This is very positive as a shareholder because it is less likely to see more competition that arises. Another reason to consider owning TCP stock is because the margins that are seen are large, which means more potential for dividend hikes.

High margins have historically boosted the dividend payment, which has grown 21% since 2013. The dividend is reviewed annually in July of each year. The current trading price of TCP stock is $58.61, which would represent a dividend yield of 6.38%.

4. Brookfield Property Partners LP (NYSE:BPY)

BPY stock is a unique real estate investment opportunity because it has a presence around the world, including Asia, Europe, and the U.S. The locations would be classified as the most premium office properties in the cities it operates in.

Due to having unique assets in the portfolio, shareholders have been rewarded with a consistent dividend, with no payouts missed or cut, only increased. Shareholders have also been told to expect a five-to-eight-percent increase in the dividend payment annually. The shares are yielding 5.03%, with a current trading price of $22.26. (Source: “Overview,” Brookfield Property Partners LP, last accessed January 9, 2017.)

With steady cash flow from the real estate portfolio, management has used the excess cash flow for share repurchases. This provides evidence that they believe the shares are undervalued and that the market is not recognizing the price discount of the shares.

5. Gaming and Leisure Properties Inc (NASDAQ:GLPI)

Gaming and Leisure Properties Inc has been a consistent dividend payer since its initial public offering (IPO) in 2013. The company has also been a constant dividend grower, seeing an annual increase of the payout.

Paying a regular dividend has not been the only payout to shareholders; there have been two special dividends as well. Both occurred in 2014, a year after the IPO. The first payment was done early in the year and worth $11.84, while the other was paid near the end of the year for $0.40.

From an investor’s prospective, GLMI stock is a great opportunity to invest in the portion of the real estate market which caters to the casino and gaming industry. The properties in the portfolio are across the U.S., which includes heavy tourist areas such as New Orleans, Hollywood, and Las Vegas.

6. Enbridge Energy Partners, L.P. (NYSE:EEP)

EEP stock offers investors a high dividend yield of 9.01%. Investor may be concerned if the yield is safe or not when it is this high. Based on the history of the company, the dividend appears to be safe, because the dividend has been growing over the past seven years.

The company transports oil through pipelines across North America. The pipeline business is known for being inflation-indexed and the most efficient form of transporting oil, which is why EEP stock pays a high dividend yield.

Business operations are low-cost, with only maintenance of the pipeline being a regular fee. The pipeline business has a high barrier to entry, so most payments take the form of the up-front cost.

7. Senior Housing Properties Trust (NASDAQ:SNH)

SNH stock is an investment for both the present and future. What I am referring to is the growing number of seniors in the U.S. With the baby boomer generation set to retire, there will be a growing demand for senior facilities.

Seniors presently account for approximately 15% of the total population, and by 2060, this number is expected to grow to approximately 24%. Senior Housing Properties Trust is perfectly positioned to benefit from this shift in the demographic. The majority of the assets are in senior housing, with others in skilled nursing facilities and wellness centers. (Source: “Projections of the Size and Composition of the U.S. Population: 2014 to 2060,” U.S. Census Bureau, last accessed January 9, 2017.)

Shareholders have not been forgotten, with SNH stock having a dividend yield of 8.09%, which is based on the current trading price of $19.29. The dividend is paid on a quarterly basis in the amount of $0.39 per share and has seen an increase of 30% over the past 16 years.

8. Seagate Technology PLC (NASDAQ:STX)

STX stock is a rare find–a high-dividend stock in the technology sector. The trading price for STX stock is $38.13, representing a current dividend yield of 6.61%. The payout ratio for STX stock is approximately 66%, which provides a sense of safety and the possibility of growing over time.

I mention this because growth is exactly what has happened. Since 2012, the dividend payment to shareholders has doubled. Share repurchases have also happened, the last being in 2015 for $2.5 billion. (Source: “Seagate Technology Announces New $2.5 Billion Share Repurchase Authorization,” Seagate Technology PLC, April 22, 2015.)

Seagate has successfully reduced costs in areas of the business that are not seeing the growth that they should. This was primarily accomplished by reducing the company’s overall headcount.

Revenue has also increased thanks to a focus on higher margin businesses such as cloud storage. This is a great proactive move since the cloud is the future of data storage.

9. Orchids Paper Products Company (NYSEMKT:TIS)

Orchids Paper Products Company is a supplier of consumer tissue products such as paper towels, bathroom tissue, and paper napkins.

TIS stock operates in the consumer staples segment of the market. Consumer staples products are known as generating sales, no matter if the economy is going through a recession or growing. This segment is great for investors, as it means they should always see an increase in the cash flow. This has been reflected in the dividend payment to shareholders which has grown 75% since 2012.

The current dividend yield is 5.33% this is calculated based on the current trading price of $26.27.

10. Tupperware Brands Corporation (NYSE:TUP)

Tupperware has a presence in more than 100 countries around the world. The company manufactures and sell cosmetics, personal care products, and food storage and preparation products.

Having business operations around the world does reflect in the bottom line. On an annual basis, TUP stock pays a dividend of $2.72. Over the past four years, the dividend has seen an increase of 88%. The current yield is 5.05%, based on a trading price of $53.88.

Tupperware has also been engaged in share buybacks. Since 2007, there has been a total of $1.3 billion in share repurchase, benefiting shareholders’ overall net worth.

Final Thoughts About These High-Dividend Stocks

These 10 high-dividend stocks stocks should be considered as an investment for two reasons.. The first is that these stocks are offering a higher dividend yield when compared to the S&P 500, which has a current yield of 1.98%.

Second, these companies are shareholder-friendly, as evidenced by the growing dividend payments. A few of the companies’ share repurchases were completed with the excess capital, which is an added bonus. And in the very special cases, a special dividend was paid to shareholders, which is a rarity.

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