Finding high-profit stocks when the stock market is at its peak can be quite challenging, but it’s crucial to choose wisely. Fortunately, there are still lucrative income opportunities if you’re patient and carefully consider the dividend histories of companies such as Federal Realty (FRT), Bank of Nova Scotia (BNS), and W.P. Carey (WPC). Whether you have $500 or $5,000 to invest, here are some key details to help you get started.
Federal Realty is the king of REITs
Federal Realty’s dividend yield stands at approximately 4.4%, which outshines the S&P 500 index’s modest 1.3% and the typical real estate investment trust (REIT) average of around 4.1%. However, what truly sets this retail-focused REIT apart is its impressive dividend history.
I’ve noticed that Federal Realty stands alone as the sole REIT holding the prestigious title of Dividend King, having consistently increased its dividends for over half a century – an impressive 50 years and counting! What supports this remarkable record is a company that prioritizes quality above all else. It owns a carefully curated portfolio of approximately 100 choice properties, including strip malls and mixed-use developments that are often the cream of the crop in their respective regions, catering to the needs and preferences of their local communities.
Management concentrates on both rebuilding and expanding, as they acquire and dispose of assets throughout time. The aim is to continuously enhance the portfolio’s ability to generate rental income. It’s evident that this strategy has been successful for investors, considering the outstanding dividend history in the industry. To give you an idea, a $500 investment would approximately get you five shares of Federal Realty stock.
Bank of Nova Scotia is reliable on the dividend front
Scotiabank, commonly known as Bank of Nova Scotia, is absent from the Dividend Kings list. However, it has consistently disbursed dividends since it began in 1833 (yes, that’s accurate). The most noteworthy instance for this Canadian bank occurred during the 2007 to 2009 financial crisis, a period when numerous U.S. banks reduced their dividend payouts.
Canadian financial authorities, known for their cautious approach compared to U.S. counterparts, prohibited large Canadian banks from raising their dividends during the Great Recession. As a result, Scotiabank maintained its dividend at the same level until the regulators permitted an increase. However, it’s important to note that the dividend was not increased in 2024 because the company was undergoing a business transformation at that time.
The strategy of prioritizing its prime growth prospects and expanding into the U.S. market, which it previously overlooked, has been successful. Moreover, the company’s dividend was boosted for a second consecutive year. Given a dividend yield of approximately 5.8%, investing $500 would roughly secure nine shares of the stock.
REIT turnaround story W.P. Carey is better than it seems
The stock with the highest yield at present is W.P. Carey, offering a return of approximately 5.8%. However, it’s worth noting that this Real Estate Investment Trust (REIT) reduced its dividend towards the end of 2023, just shy of the 25-year milestone for annual dividend increases. This move, despite being unconventional, is likely to set the stage for sustained dividend growth in the years ahead.
Fundamentally, W.P. Carey chose to leave the office market due to persistently high vacancy rates following the pandemic and the rise of remote work. A significant portion of their business was tied to offices, leaving few alternatives but to reduce the dividend. Now, the REIT primarily invests in warehouses, industrial properties, and retail centers, all of which seem more promising for long-term expansion. Since the reduction, the dividend has been boosted each quarter, just as it did prior to the adjustment.
The reduction in dividends was a difficult reality for investors, but W.P. Carey is now stronger than before the cut. Significantly, the sale of offices provided cash for investing in new properties, which are now contributing significantly to the rental income. If you’re open to a low-risk turnaround scenario, W.P. Carey could be an excellent addition to your portfolio as it gradually rebuilds its dividend reputation one quarter at a time. Investing $500 would approximately get you seven shares.
There are dividend opportunities despite the lofty level of the S&P 500
Currently, the stock market appears pricey overall, yet it consists of numerous distinct individual companies. This means there’s always a chance to discover attractive investment opportunities, such as high-yield stocks like Federal Realty, Scotiabank, and W.P. Carey. Not every one of these may appeal to the same kind of dividend investor, but if you delve deeper, it’s probable that at least one will be a suitable addition to your investment portfolio today.
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2025-07-21 13:01