When thinking about high dividend yields, what types of stocks do you imagine? Most investors would imagine large energy firms and huge drug manufacturers, and many of those kinds of stocks succeed in offering great dividend yields.
However, a few smaller firms also manage to deliver promising dividends. These lesser known firms are usually not of much interest to investors. The following are 3 promising high-yield dividend stocks that might be unknown to you but shouldn’t be overlooked.
The first one is the Innovative Industrial Properties, which is a real estate investment trust delivering a dividend yield of over 4.9%. Since real estate investment trust must pay out, as dividends, more than 90% of taxable income, which paves the way for promising yields, it isn’t a shock that a real estate investment trust has a place on this list. What might come as a shock, however, is Innovative Industrial Properties’ business of purchasing and leasing out medical cannabis properties.
The second on the list is Medical Properties Trust. As the name suggests, MPT’s business is owning and leasing medical services, mainly acute-care hospitals. The company’s dividend yield is at 4.64% presently. The stock underwent a nice run the previous year, it rose over 31%. A large part of this was owed to the acquisitions by the Medical Properties Trust, whose assets rose considerably as it purchased and leased hospital estate worth nearly $3.7 billion.
The third is Omega Healthcare Investors, which is also a healthcare real estate investment trust. The company focuses on the properties of the skilled nursing facility. Omega Healthcare Investors’ dividend yield is at over 6%.
The company’s business model doesn’t require for its tenants to be very profitable. It only wants for them to be able to pay their rents.