Top stocks with a dividend of up to 5.7% are an eye-catcher for you? Of course, of course. A high distribution yield and solid, company-focused quality can help it surpass inflation.
So let’s not waste any more time. Anyway, here are the top three stocks I buy again. And to the current assessments.
Top share with a dividend of around 3.4%: But very quality!
A first top stock that I will now buy with a dividend of around 3.4% is Kellogg (WKN: 853265). Let’s talk about dividends for a moment: Management has consistently paid dividends to investors for almost 100 years. Regularly, not necessarily annually, but quite often, you also increase your own payout per. It’s quite attractive.
However, the core of my purchase is not only primarily the dividend. Kellogg is behind some very strong products such as breakfast products and so-called pop pies. Because these products are so popular, the US group has a strong pricing power. Even in times of inflation, it seems that consumers are still reaching out for the products and not falling back on cheaper self-brands from supermarkets and discount stores.
With a price / earnings ratio of just 15.5, the valuation is relatively cheap. Quality and a moderate protection against inflation with a fiery top share are now quite rare under these conditions. I’m willing to trade some dividends for it.
5%: We are approaching the goal!
Another top stock with a dividend of around 5%, which is very high on my watch list, is Vonovia (WKN: A1ML7J). The DAX residential property broke through this mark at the end of this week. It is remarkable: Not even a year ago it was less than 3%.
Has a phase of overestimation come to an end? Yes, possibly. Is the stock too cheap now? It also seems plausible to me. In any case, with rising interest rates, there is a potential stress factor for the DAX residential property group, which has usually financed its growth and acquisitions with debt.
With a price-FFO ratio of only 11 and growth prospects still moderate, I see a solid future for Vonovia. Even with a 5% dividend and the prospect of growing dividends, I am convinced that it is now worthwhile to buy this top stock with a long-term perspective.
Top share with 5.7% dividend: Store capital!
Last but not least, the top stock, which actually has a dividend of 5.7% store capital (WKN: A12CRU). We can also refer to it as a Buffett REIT. Or as a triple net lease REIT with a portfolio that includes 2,965 different properties. Properties that cannot be rejected out of hand.
Here, too, rising interest rates are worrying investors. But the hard facts see a strong performer. Last year, management increased its own dividend by about 7% compared to before. In addition, management has raised its own guidance for operating funds from at least $ 2.18 to $ 2.20 by 2022. These are signs of strength, not doom.
Store Capital is now trading at a price-to-FFO ratio of only 12.3. There is also the aforementioned dividend of 5.7%, the prospect of further moderate growth and a top stock, which Warren Buffett also backs, at an absolutely fair price.
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Vincent owns shares in Kellogg, Store Capital and Vonovia. The Motley Fool recommends Store Capital.