For those seeking super-safe dividend income in 2025, three ultra-high-yield stocks are worth considering. Realty Income (O), Enterprise Products Partners (EPD), and PennantPark Floating Rate Capital (PFLT) offer attractive yields with a focus on cash-flow consistency.
Realty Income stands out for its unmatched commercial real estate portfolio and long-term lease agreements. The company’s rental properties are less susceptible to economic downturns, ensuring predictable cash flows and stable distributions. With an average yield of 6.02%, Realty Income is a reliable choice for income investors.
Enterprise Products Partners excels in the energy sector with a fixed-rate operating model. Long-term contracts with upstream drillers provide a steady stream of revenue, allowing for accurate cash-flow forecasting. The company’s safety record and recent acquisition of Pinon Midstream make it an attractive option for those seeking stable dividend income.
PennantPark Floating Rate Capital is a business development company (BDC) that invests in debt or equity of middle-market businesses. Its predominantly debt-focused portfolio yields 11.36%, making it an attractive option for those seeking high-yielding investments. The BDC’s operating model, with variable-rate loans and first-lien secured notes, provides a robust defense against potential losses.
Investing in these three ultra-high-yield dividend stocks can help generate $300 monthly income from an initial investment of $3,730 (split three ways). However, it is essential to conduct thorough research and consult with a financial advisor before making any investment decisions.
Source: https://www.fool.com/investing/2024/12/30/want-300-safe-dividend-income-in-2025-invest-3730