3 Top Shares with 5% Dividend | news

3 Top Shares with 5% Dividend |  news

Are you looking for top stocks with a dividend of 5%? Then today’s roadmap is actually already fixed. So let’s not start more teasing today about where the opportunities and risks are. You have your reasons.

So there you go: Here are my top three stocks with 5% dividends, which you can take a closer look at right now.

Top share with 5% dividend: IIPR!

A first top share that now gives a dividend of 5% Innovative industrial properties (WKN: A2DGXH). Let’s face it, have you ever wanted a high-growth stock with a large payout, a reliable history and a cheap valuation for its growth potential? Congratulations: your search is over today.

Innovative Industrial Properties recently increased funds from operations per. share again in the high double-digit percentage range. On a normalized basis, growth was 38%. At the same time, the price-FFO ratio is relatively cheap at 19.5. In the most recent quarter, dividends increased by 16.7% on a quarter-on-quarter basis. These are the conditions. The only downside: growth is not required at the moment. There is also a shortseller report that negatively impacted the stock.

If we still draw a conclusion, then I think: With a dividend of 5%, this top stock is worth the risk. Therefore, Innovative Industrial Properties is a short-term option in this valuation. It may not be defensive, but it’s solid and growing.

Alliance: Even if you have to wait a year

Another top stock with a dividend of 5% is alliance (WKN: 840400). “After the dividend is before the dividend” can be a difficult motto for income investors to follow. With a final distribution of EUR 10.80, the dividend yield would currently be above 5.5%. It’s worth the wait if you ask me.

But that’s not all. Allianz management expects stable, moderate growth over the next few years. Earnings per share and dividend are expected to grow in the mid-digit percentage. With an adjusted price earnings of 10.5, the valuation is cheap overall.

What awaits a year to get another dividend? Foolish, far-sighted investors are now looking for this top 5% dividend-bearing stock for a trade-off between valuation, modest growth and a solid, established business model.

Top stock with 5% dividend according to Warren Buffett

Last but not least is store capital (NYSE: BAC) is a stock with top 5% dividend for me that has a special quality: Warren Buffett is betting on this name. Admittedly with a really pretty low effort. But it is the only real estate investment fund present in its portfolio.

Store Capital’s management follows a good strategy. Every quarter, there are additional acquisitions that expand the operating base. More real estate means more funds from operations. In a quarterly comparison, the value rose again by one US cent. While not much, with a price-to-FFO ratio of less than 13 for the year to date, the valuation is not too expensive in terms of quality and modest growth potential.

In addition, there is also the prospect of moderate dividend growth for this top share with a current dividend of 5.5%. All of this together is predestined to generate solid returns.

The article on 3 best stocks with 5% dividend first appeared on The Motley Fool Germany.

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Vincent owns shares in Allianz, Innovative Industrial Properties and Store Capital. The Motley Fool owns shares in and recommends Innovative Industrial Properties and recommends Store Capital.

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