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Going into 2022, we wanted to bring to you the five best dividend stocks you can buy on Robinhood that pay great dividends. Please note that dividend yields change (see image below) sometimes rather rapidly, however, as of publishing all of the below have yields over 5%, and they pay monthly. Let’s get right into it.
5. Main Street Capital (MAIN) Dividend Yield: 5.67%
Starting out our list is Main Street Capital, this is a business development company (BDC), which means they act as a private equity fund, but you don’t have to be an accredited investor to get a piece. Main Street is considered one of the highest-quality BDCs around, and though it will likely continue to trade at a high premium to its book value with the current dividend yield, investors will still be happy.
4. EPR Properties (EPR) Dividend Yield: 6.32%
EPR is in the Real Estate Investment Trust (REIT) category but does not follow the typical REIT model of office buildings and apartment complexes.
EPR holds a unique mix of casinos, amusement parks, and movie theatres. They call themselves “the leading diversified experiential” REIT. Though the stock price was hurt by the pandemic, their dividend value has shot up.
3. LTC Properties (LTC) Dividend Yield: 6.74%
LTC is another REIT but has a specialty focus in nursing homes and other senior housing facilities. They differentiate themselves by not doing the typical sale and leaseback of properties but are using preferred equity, mezzanine, and other unique investment structures in elder care facilities.
It should be noted that in 2021 investors bid LTC stock down, and the reason the yield is so high is that there is a potential for a dividend cut. Until then, we will just have to keep our fingers crossed and enjoy the 6.74% yield.
2. Horizon Technology Finance (HRZN) Dividend Yield: 7.56%
Like Main Street Capital, Horizon is also a BDC; however, they are more like a combined venture capital and closed-end fund rather than a Private Equity. Horizon makes both debt and equity investments in healthcare and technology companies. Horizon stock trades at a premium to its net asset value, and while interest rates remain at historic lows, this does not matter, but as they rise, it will be more important.
1. San Juan Basin Royalty Trust (SJT) Dividend Yield: 29.96%
Our top pick for dividend yield stocks that you can purchase through Robinhood is an oil and gas royalty trust. San Juan Basin Royalty Trust popped in 2021 because of the huge price increases in fossil fuels resulting from supply chain issues and cold weather in the US and Russia. San Juan holds an interest in a total of 119,000 acres and 825.9 net wells, all found in New Mexico. Though the fund had suspended its dividend for a few months in 2020 it had paid a consistent dividend from October 2020 through 2021.
(post authored by Stephen Masters)
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