Motley Fool Backs 3 Dividend Stocks After Dips, With 1 Yielding Over 8.5%
Updated
Updated · The Motley Fool · Jul 12
Motley Fool Backs 3 Dividend Stocks After Dips, With 1 Yielding Over 8.5%
3 articles · Updated · The Motley Fool · Jul 12
Summary
Three lagging dividend stocks—Brookfield Renewable, Realty Income and Main Street Capital—were flagged as buys after price drops lifted their yields well above the S&P 500’s roughly 1.1%.
Brookfield Renewable trades nearly 20% below its 52-week high, pushing its yield near 4.5%, while the company says 90% of cash flow is contracted and targets 5% to 9% annual dividend growth.
Realty Income sits more than 5% below its high, lifting its yield above 5%, even as new partnerships including a more than $1.5 billion logistics venture and a $1.4 billion data-center JV expand growth avenues.
Main Street Capital has fallen nearly 25% from its high, driving its yield above 8.5%; the BDC says its portfolio has just 2% software exposure and recently booked a $46.4 million investment gain.
The pitch comes after the S&P 500 rose 20% over the past year, compressing broad-market income yields and making out-of-favor dividend names stand out more to income-focused investors.