Connect with us

Business

Buy the fear like Warren Buffett. Here are 3 top stocks yielding as high as 9.2% — so you can ‘make your money on inactivity’

News Agencies

Published

on

Buy the fear like Warren Buffett. Here are 3 top stocks yielding as high as 9.2% — so you can ‘make your money on inactivity’

Buy the fear like Warren Buffett. Here are 3 top stocks yielding as high as 9.2% — so you can ‘make your money on inactivity’

Everyone wants to buy low and sell high. But it’s a lot easier said than done — especially in a falling market. The S&P 500 has tumbled 16.5% year to date.

But you don’t need a rallying market to make money from stocks. You can also collect dividends.

Instead of trying to capture a stock’s next move up — or down — dividend investors can just sit back, relax, and let the dividend checks roll in.

After all, Warren Buffett once said, “Wall Street makes its money on activity. You make your money on inactivity.”

Don’t miss

It’s hard to be a buyer of anything in a market where everyone seems to be panic selling. But then again, being contrarian is exactly how many investors became successful.

“Be fearful when others are greedy and greedy when others are fearful.”

That’s perhaps the most famous quote from Buffett.

With that in mind, here’s a look at three companies delivering oversized dividend checks to investors. Wall Street also sees an upside in this trio.

AT&T (T)

We pay our cell phone bills and Internet bills every month. If you want to get even, consider collecting dividends from companies that provide these services.

AT&T, for instance, is one of the largest telecommunications companies in the world. More than 100 million consumers in the U.S. use its mobile and broadband services. At the same time, the company also serves nearly all Fortune 1000 companies with connectivity and smart solutions.

And because wireless and Internet services are necessities for the modern economy, AT&T generates a recurring business through thick and thin.

The company pays quarterly dividends of 27.75 cents per share, translating to an annual yield of 5.9%.

Raymond James analyst Frank Louthan has a ‘strong buy’ rating on AT&T and a price target of $24. Considering that AT&T shares currently trade at around $18.90 a piece, the price target implies a potential upside of 27%.

Realty Income (O)

Realty Income is a real estate investment trust with a portfolio of over 11,700 properties that are under long-term lease agreements.

Its top tenants include big names like Walmart, CVS Pharmacy, and Walgreens — companies that have survived and thrived through thick and thin.

In fact, the REIT claims that it collects around 43% of its total rent from investment-grade tenants. A diversified, high-quality tenant base allows Realty Income to pay reliable dividends.

Read more: Trade up while the market is down: Here are the best investing apps to pounce on ‘once-in-a-generation’ opportunities (even if you’re a beginner)

Moreover, while most dividend-paying companies follow a quarterly distribution schedule, Realty Income pays its shareholders every month.

The stock currently yields 4.6%.

Morgan Stanley analyst Ronald Kamdem has an ‘overweight’ rating on Realty Income and a price target of $74 — roughly 13% above the current levels.

MPLX (MPLX)

MPLX isn’t a household name like AT&T. But for the serious yield-hunters, it’s a stock that probably shouldn’t be ignored.

Headquartered in Findlay, Ohio, MPLX is a master limited partnership created by Marathon Petroleum to own, operate, develop and acquire midstream energy infrastructure assets.

The partnership pays quarterly cash distributions of 77.50 cents per unit. With the stock trading at $33.73, that translates into a chunky annual dividend yield of 9.2%.

In Q3, MPLX generated $1.26 billion of distributable cash flow, which provided 1.58 times coverage for its cash distributions for the quarter.

The stock is also up 12.8% year to date, in stark contrast with the S&P 500’s double-digit loss during the same period.

Wells Fargo analyst Michael Blum sees further upside on the horizon. Blum has an ‘overweight’ rating on MPLX and a price target of $40, about 19% worth of upside from where the stock sits today.

What to read next

  • Over 65% of Americans don’t shop around for a better car insurance deal — and that could be costing you $500 a month

  • Want to invest your spare change but don’t know where to start? There’s an app for that

  • Mitt Romney says a billionaire tax will trigger demand for these two assets — get in now before the super-rich swarm

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Continue Reading
Advertisement

Breaking News

Advertisement

Editor Pick’s

Latest Entertainment

Entertainment2 hours ago

Sally Field reveals that Burt Reynolds was her worst onscreen kiss: ‘Just a lot of drooling’

Turns out, Sally Field didn’t exactly have a field day when it came time to kiss her Smokey and the...

Entertainment3 hours ago

New Trailer For Miss Cleo Documentary Hints At ‘Web Of Stories’ Surrounding Her Life

Youree Dell Harris, aka Miss Cleo, is pictured on Feb. 24, 2009, in Lake Worth, Florida. Youree Dell Harris, aka...

Entertainment4 hours ago

Man arrested in fatal shooting of Migos rapper Takeoff

HOUSTON (AP) — Police have arrested a 33-year-old man in the fatal shooting of rapper Takeoff, who was killed last...

Entertainment4 hours ago

John Krasinski says his kids think he works in an office and when he showed them episodes of his show “The Office,” his youngest didn’t believe it was him on TV

John Krasinski, left, and right, as Jim Halpert in “The Office.”Jason Howard/Bauer-Griffin/GC Images; NBCUniversal/Getty Images John Krasinski’s kids think he...

Entertainment4 hours ago

‘Midnight Club’ Creator Mike Flanagan Reveals All Answers to Unresolved Mysteries After Show’s Cancellation, Including Mirror Man and Cataract Woman

Mike Flanagan kept his word and has revealed the answers to burning questions from the cliffhanger ending of “The Midnight...

Entertainment4 hours ago

Balenciaga outlines organizational changes after campaign backlash, ‘outraged’ Kim Kardashian

Balenciaga ambassador Kim Kardashian is speaking out after the luxury fashion house was embroiled in controversy for its recent holiday...

Entertainment4 hours ago

Backstreet Boys talk holidays, ‘leaning on one another’ during tough times, and fond childhood Christmas memory of Aaron Carter

The Backstreet Boys’ Nick Carter, Howie Dorough, AJ McLean, Brian Littrell, and Kevin Richardson. (Photo: JCPenney) The Backstreet Boys just...

Entertainment4 hours ago

Backstreet Boys talk holidays, ‘leaning on one another’ during tough times, and sweet childhood Christmas memory of Aaron Carter

The Backstreet Boys’ Nick Carter, Howie Dorough, AJ McLean, Brian Littrell, and Kevin Richardson. (Photo: JCPenney) The Backstreet Boys just...

Latest Sports

Sports58 mins ago

Fifa finally release footage that proves Japan’s goal was legitimate

Fifa have finally revealed the footage they used to overturn the decision to disallow Japan’s winning goal against Spain on...

Sports1 hour ago

Bulls Rumors: Lakers have internally discussed DeRozan, Vučević trade

The NBA rumor mill has begun to churn, and the Bulls and Lakers are at the center of it.

Sports2 hours ago

Thorns coach Rhian Wilkinson resigns after investigation for which she was cleared; players asked her to step down

Wilkinson led Thorns FC to their third NWSL championship in her first season as head coach.

Sports2 hours ago

World Cup 2022: Luis Suarez unapologetic about 2010 intentional handball ahead of Ghana rematch

Suarez's infamous handball ended up being the main reason Uruguay beat Ghana and advanced to the semifinals.

Sports3 hours ago

Travis Kelce on Skyline Chili: ‘I’m not eating it’

Chiefs and former UC star Travis Kelce isn't a fan of Skyline Chili, but he did express his love for...

Sports3 hours ago

NBA Fact or Fiction: Can the Heat still win a title?

Miami has been knocking on the door of an NBA title for a few years now. With a below average...

Sports3 hours ago

Notre Dame quarterback Drew Pyne to transfer ahead of bowl game

Drew Pyne went 8-2 as a starter for the Irish this season after he took over for Tyler Buchner in...

Sports4 hours ago

End of a college football era, and good riddance

With the announcement of an expanded College Football Playoff, it's the end of an era in the sport. Thankfully.

Technology Hot News

Is Elon Musk Really Going to Buy Twitter? Is Elon Musk Really Going to Buy Twitter?
Technology1 month ago

Is Elon Musk Really Going to Buy Twitter?

Elon Musk, the owner of the electric car company Tesla, CEO of SpaceX, and the richest man in the world,...

WhatsApp services were affected across Pakistan, restored after 2 hours WhatsApp services were affected across Pakistan, restored after 2 hours
Technology1 month ago

WhatsApp services were affected across Pakistan, restored after 2 hours

WhatsApp services were affected in various countries of the world, including Pakistan, and India due to this users were facing...

Bitcoin vs Litecoin: A guide to understanding cryptocurrencies Bitcoin vs Litecoin: A guide to understanding cryptocurrencies
Technology2 months ago

Bitcoin vs Litecoin: A guide to understanding cryptocurrencies

Cryptocurrencies currently occupy an odd place in society. They are no longer the super niche bizarre currency beloved by tech...

Personal data of people is selling on Google Play and Google Ads Personal data of people is selling on Google Play and Google Ads
Editor Picks3 months ago

Personal data of people are sold on Google Play and Google Ads

It’s been two to three years since Google has been unknowingly hosting multiple apps from malicious actors who sell personal...

Protonmail is down a second time in the past 24 hours Protonmail is down a second time in the past 24 hours
Technology5 months ago

Protonmail is down a second time in the past 24 hours

An end-to-end encrypted email service Protonmail is down a second time in the past 24 hours, netizens reported on social...

What's better for the student: a tablet or a laptop What's better for the student: a tablet or a laptop
Technology6 months ago

What’s better for the student: a tablet or a laptop

Some analysts argue that computers have outlived their usefulness. There is some truth in this: PC and laptop sales are...

Tesla founder Elon Musk holds the Twitter deal temporary Tesla founder Elon Musk holds the Twitter deal temporary
Technology7 months ago

Tesla founder Elon Musk holds the Twitter deal temporary

USA: Elon Musk, the founder of companies like Tesla and SpaceX, can actually buy anything in the world. Last month,...

How Zafar Supari is utilizing his ability on Snapchat? How Zafar Supari is utilizing his ability on Snapchat?
Technology7 months ago

How Zafar Supari is utilizing his ability on Snapchat?

Pakistan: Zafar Supari a public figure, businessman, and social media sensation has crossed one hundred thirty-three thousand 133k subscribers on...