3 High Yield Dividend Stocks Under $35 to Buy Today

There are plenty of great stocks to buy every day of the week, but there’s just something a little extra about dividend stocks that makes them hard to resist. That’s why I’m such a fan of REITs. And what is not to love? The regular payouts are great, and then there’s the potential for your shares to grow in value over time – owning them really is a win-win.

One downside, however, is that many of these stocks have high entry points if you want to buy whole shares — and not every brokerage makes buying fractional shares an option. That can make things difficult for new investors, of course. That’s why I’m sharing my three favorite high-yielding dividend stocks under $35 for you to go buy today.

1. HA Sustainable Infrastructure Capital

HA Sustainable Infrastructure Capital (NYSE: HASI) — known as HASI — is a REIT that focuses specifically on leasing space for renewable energy and other sustainable infrastructure projects, as well as making loans for such projects.

HASI exists inside a green moat, giving it a unique business model and an advantage over other companies looking to get into green infrastructure, although it has a bit more debt than I like. Management expects annual adjusted earnings per share growth of 8% to 10% through 2026, however, largely due to continued aggressive growth in assets under management as well as its own portfolio, so I expect its debt to come down in time as the respective investments. it bears fruit.

HASI has been a reliable dividend payer for years, with stable and continuous dividend growth since it first went public in 2013. Its current forward yield is around 4.8%, and the stock trades hands for about $35.

2. Vici Properties

Where HASI refers to environmental greening, Vici properties (NYSE: VICI) it’s just green. This real estate investment trust is betting big on gambling — and it’s winning.

With a portfolio of hospitality and entertainment destinations that includes Caesars, MGM Grand and Chelsea Piers, it’s hard to imagine a time when betting against the house here would be the right move. Like HASI, Vici has a fairly wide moat — it has unusual properties that aren’t easy to copy. That alone is a great reason to consider the stock, but the REIT is also well-managed, with a reasonably small pile of debt compared to its assets.

In Q2, its revenue grew 6.6% year-over-year, and it has never cut its dividend since going public in 2018. Currently, the forward yield for VICI is around 5.1%. That’s more than most certificates of deposit offer. Its shares are now trading at around $34.

The story continues

3. UMH Properties

If you are not interested in green energy or green money, UMH properties (NYSE: UMH) offers lot housing units for rent in manufactured home communities in 11 US states.

UMH helps bridge the gap between single-family rental properties and multi-family properties by providing people with housing that is fully detached, but at prices more comparable to an apartment, with a weighted average monthly rent of $519. Many of the homes in its communities are owned by their occupants — and often sold to them directly by UMH — but the lots they sit on are leased. This offers the advantages of something closer to a triple net lease (NNN) REIT, as the lots themselves have minimal maintenance expenses. The owners are responsible for the houses.

UMH has also gained significant financial flexibility since the opening of its OZ (opportunity zones) fund, which allows it to obtain significant tax benefits on properties in economically distressed areas. However, investments in opportunity areas are by their nature long-term, so some of the benefits will not be fully realized for some time.

At the current payout and share price, UMH’s forward dividend is around 4.3%. The REIT has held its payout flat or increased it every quarter since 2009, following a cut during the Great Recession. UMH shares are priced at around $20.

$35 doesn’t buy much these days…

What this exercise shows is that there are some solid, affordable dividend-producing stocks that will continue to outperform many low-risk passive investment vehicles. REITs are fairly low maintenance in terms of inventory. You can set them and forget them, and there’s a chance that when you’re ready to sell them, you’ll get more than you paid for.

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Kristi Waterworth has positions in HA Sustainable Infrastructure Capital, Inc. and UMH Properties. The Motley Fool recommends UMH Properties and Vici Properties. The Motley Fool has a disclosure policy.

3 High-Yield Dividend Stocks Under $35 to Buy Today was originally published by The Motley Fool