There are tons of great stocks out there to buy every single day of the week, but there's just something a little extra about dividend stocks that makes them hard to resist. That's why I'm such a fan of real estate investment trusts. And what's not to love? Regular payouts are great, and then there's the potential for your shares to increase in value over time -- owning them is really a win-win.
Still, one downside is that many of these stocks have high entry points if you want to buy full shares -- and not every brokerage makes buying fractional shares an option. That can make things tougher for new investors, to be sure. That's why I'm sharing my three favorite high-yield dividend stocks that cost less than $35 for you to go out and buy today.
1. HA Sustainable Infrastructure Capital
HA Sustainable Infrastructure Capital(NYSE: HASI) -- known as HASI -- is a REIT that focuses specifically on renting space for renewable energy and other sustainable infrastructure projects, as well as making loans for such projects.
HASI exists inside a green moat, giving it a unique business model and an edge against other companies looking to get into green infrastructure, although it does have a bit more debt than I like. Management is projecting annualized adjusted earnings per share growth of 8% to 10% through 2026, though, largely due to continued aggressive growth in managed assets, as well as its own portfolio, so I expect its debt load to decrease over time as those investments bear fruit.
HASI has been a reliable dividend payer for years, with stable and continuous dividend growth since it first went public in 2013. Its current forward yield is about 4.8% and the shares change hands for about $35.
2. Vici Properties
Where HASI is all about greening up the environment, Vici Properties(NYSE: VICI) is about just the green. This real estate investment trust takes big gambles on gaming -- and it's winning.
With a portfolio of hospitality and entertainment destinations that includes Caesars, the MGM Grand, and Chelsea Piers, it's hard to imagine a time when betting against the house here would be the right move. Like HASI, Vici has a fairly wide moat -- it owns unusual properties that aren't easily copied. This alone is a great reason to consider the stock, but the REIT is also well managed, with a reasonably small pile of liabilities compared to its assets.
In Q2, its revenue rose by 6.6% year over year, and it has never cut its dividend since it went public in 2018. Right now, the forward yield for VICI is about 5.1%. That's more than most certificates of deposit are offering. Its shares now trade for about $34.
3. UMH Properties
If neither green energy nor greenbacks are your thing, UMH Properties(NYSE: UMH) offers housing units on rental lots in manufactured home communities in 11 U.S. states.
UMH helps to bridge the gap between single-family rental properties and multifamily properties, giving people housing that is wholly detached, but at prices more comparable to an apartment, with a weighted average monthly rent of $519. Many of the houses in its communities are owned by their occupants -- and have often been sold to them by UMH directly -- but the lots they sit on are rented. This provides the advantages of something closer to a triple net lease REIT (NNN) because the lots themselves have minimal upkeep expenses. Owners are responsible for the houses.
UMH also has gained significant financial flexibility since opening its OZ (opportunity zones) Fund, which allows it to reap significant tax benefits on properties in economically distressed areas. However, investments in opportunity zones are by nature long term, so some of the benefits will not be fully realized for a while.
At the current payout and share price, UMH's forward dividend is about 4.3%. The REIT has kept its payout steady or increased it every quarter since 2009, following a cut during the Great Recession. UMH shares are priced at about $20.
$35 doesn't buy much these days...
What this exercise shows it that there are some solid, affordable dividend-producing stocks that will continue to yield better than many low-risk passive investment vehicles. REITs are pretty low maintenance as far as stocks go. You can just set them and forget them, and there's a chance that when you're ready to sell them you'll get more than you paid.
Should you invest $1,000 in HA Sustainable Infrastructure Capital right now?
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Kristi Waterworth has positions in HA Sustainable Infrastructure Capital, Inc. and UMH Properties. The Motley Fool recommends UMH Properties and Vici Properties. The Motley Fool has a disclosure policy.
