The stock market is currently near all-time highs, resulting in a low dividend yield on the S&P 500 Index of 1.2%, which may not be appealing to dividend investors. However, there are opportunities to generate higher yields with stocks like Realty Income and Toronto-Dominion Bank. These are considered top high-yield stock picks, but it’s important to note that there is a range of risk associated with each.
Realty Income offers a dividend yield of around 5.1%, which is significantly higher than the average real estate investment trust (REIT) yield of 3.7%. The company, as a net lease REIT, rents out single-tenant properties with tenants responsible for most property-level operating costs. With a large portfolio of over 15,400 properties in North America and Europe, Realty Income is considered a low-risk investment due to its size, diversification, and investment-grade balance sheet. While the company may experience slow and steady growth, it serves as a foundational holding for high-yield portfolios.
On the other hand, Toronto-Dominion Bank has faced challenges, including a significant fine for regulatory issues in its U.S. division. Despite this, the bank still offers a dividend yield of approximately 5.2%, historically high for the company. While the U.S. business is under scrutiny, TD Bank’s core Canadian operations remain strong and are not affected by the regulatory issues. The bank is the second largest in Canada by deposits and is expected to navigate through the challenges in the U.S. market. Investors are encouraged to consider buying TD Bank during this period of negative headlines, as the company is expected to recover and resume growth once regulatory trust is regained.
Both Realty Income and Toronto-Dominion Bank offer high yields compared to the average stock, providing investors with an opportunity to create a moderate-risk high-yield portfolio. By combining these two stocks, investors can balance risk and potential returns for a diversified investment strategy.
Translated text to B1 English:
“The stock market is currently near all-time highs, resulting in a low dividend yield on the S&P 500 Index of 1.2%, which may not be appealing to dividend investors. However, there are opportunities to generate higher yields with stocks like Realty Income and Toronto-Dominion Bank. These are considered top high-yield stock picks, but it’s important to note that there is a range of risk associated with each.
Realty Income offers a dividend yield of around 5.1%, which is significantly higher than the average real estate investment trust (REIT) yield of 3.7%. The company, as a net lease REIT, rents out single-tenant properties with tenants responsible for most property-level operating costs. With a large portfolio of over 15,400 properties in North America and Europe, Realty Income is considered a low-risk investment due to its size, diversification, and investment-grade balance sheet. While the company may experience slow and steady growth, it serves as a foundational holding for high-yield portfolios.
On the other hand, Toronto-Dominion Bank has faced challenges, including a significant fine for regulatory issues in its U.S. division. Despite this, the bank still offers a dividend yield of approximately 5.2%, historically high for the company. While the U.S. business is under scrutiny, TD Bank’s core Canadian operations remain strong and are not affected by the regulatory issues. The bank is the second largest in Canada by deposits and is expected to navigate through the challenges in the U.S. market. Investors are encouraged to consider buying TD Bank during this period of negative headlines, as the company is expected to recover and resume growth once regulatory trust is regained.
Both Realty Income and Toronto-Dominion Bank offer high yields compared to the average stock, providing investors with an opportunity to create a moderate-risk high-yield portfolio. By combining these two stocks, investors can balance risk and potential returns for a diversified investment strategy.”