Dividend investing is a popular strategy among many investors looking to generate extra income from their investments. Many companies choose to return a portion of their profits to shareholders in the form of dividends, providing investors with a steady stream of income. Some companies are known for paying their investors well, offering high dividend yields that can significantly boost an investor’s income. Three such companies that currently offer attractive dividend yields are AGNC Investment, Energy Transfer, and Medical Properties Trust.
AGNC Investment is a real estate investment trust (REIT) that specializes in agency residential mortgage-backed securities (MBS). These MBS are pools of mortgages protected against credit losses by government agencies like Fannie Mae or Freddie Mac, making them low-risk fixed-income investments. AGNC Investment leverages its investments by borrowing money to buy additional MBS, earning money on the spread between borrowing costs and investment returns. This strategy has proven lucrative for the company, with a return on equity in the mid-to-high teens. AGNC Investment has paid its current dividend rate for 55 consecutive months and believes it can maintain this level in the future as market conditions improve.
Energy Transfer is a master limited partnership (MLP) that owns a diversified portfolio of energy midstream assets, including pipelines, processing plants, and export facilities. These assets generate stable cash flow backed by long-term, fixed-rate contracts or government-regulated rate structures. Energy Transfer distributes a portion of its free cash flow to investors and retains the rest for expansion projects and financial flexibility. The company has made several accretive acquisitions in recent years, aiming to grow its payout by 3% to 5% annually. This growth-focused strategy should provide investors with a rising income stream in 2025 and beyond.
Medical Properties Trust is a REIT focused on owning hospitals and leasing them to healthcare companies. The company has faced tenant issues in recent years, leading to the sale of some properties to strengthen its financial foundation. However, Medical Properties Trust has recently replaced its largest tenant with financially stronger operators and expects rental income to rise steadily as new tenants ramp up operations. This positive outlook suggests the potential for an increase in dividends in 2025 after recent cuts to preserve cash.
These high-income-producing stocks offer investors the opportunity to generate significant income from their investments. With dividend yields of 6.7% or higher, AGNC Investment, Energy Transfer, and Medical Properties Trust can help investors maximize their income potential. As these companies continue to grow and improve their financial performance, investors can look forward to a lucrative income stream in the coming year. Consider adding these high-yielding dividend stocks to your investment portfolio for a chance to boost your income in 2025 and beyond.
