These 3 dividend stocks offer more than twice the yield of the S&P 500

These 3 dividend stocks offer more than twice the yield of the S&P 500

Investors looking for income in a low-interest-rate environment may want to consider dividend stocks, which pay out a portion of their earnings to shareholders on a regular basis.

The average dividend yield of the S&P 500, a benchmark index of large U.S. companies, is currently around 1.4%. However, some stocks offer much higher yields, as long as they can sustain their payouts and grow their earnings over time.

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Here are three dividend stocks that yield more than double the S&P 500, and have strong prospects for the future.

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  • Realty Income (NYSE: O): This real estate investment trust (REIT) owns and leases more than 6,600 properties to tenants such as Walgreens, Dollar General, and FedEx. Realty Income collects stable rent payments from its tenants, and distributes most of its income to shareholders as dividends. The stock currently yields 4.2%, and has increased its dividend for 92 consecutive quarters. Realty Income also benefits from the growth of e-commerce, as it leases warehouses and distribution centers to online retailers and logistics companies.
  • AT&T (NYSE: T): The telecom giant is undergoing a major transformation, as it plans to spin off its media assets, such as HBO and CNN, into a new company with Discovery. The deal will allow AT&T to focus on its core wireless and broadband businesses, and reduce its debt load. AT&T also expects to maintain its generous dividend, which currently yields 7.4%, after the spin-off. AT&T is also investing heavily in 5G technology, which could boost its revenue and profitability in the long run.
  • Enbridge (NYSE: ENB): This Canadian energy company operates the largest network of oil and gas pipelines in North America, transporting about 25% of the continent’s crude oil and 20% of its natural gas. Enbridge generates steady cash flow from its long-term contracts with producers and customers, and pays out a dividend that yields 6.9%. Enbridge is also diversifying its business into renewable energy sources, such as wind, solar, and hydrogen, to capitalize on the global shift to cleaner energy.
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