CryptoCurrency
Here Are My Top 2 High-Yield Stocks to Buy Now
The stock market is hovering near all-time highs. That has pushed the dividend yield on the S&P 500 Index (SNPINDEX: ^GSPC) down to a paltry 1.2%, which is not an attractive number if you are a dividend investor. But you can generate yields of 5% or more with Realty Income (NYSE: O) and Toronto-Dominion Bank (NYSE: TD). They are two of my top high-yield stock picks right now. Just keep in mind that there’s a barbell here on the risk spectrum.
Realty Income: A low-risk income stream
Realty Income is offering a dividend yield of roughly 5.1%. That’s not only attractive relative to the broader market, it is also notably above the 3.7% yield of the average real estate investment trust (REIT). It’s worth noting that the monthly pay dividend has been increased annually for 29 consecutive years.
What, exactly, does Realty Income do? It is what is known as a net lease REIT. Net lease REITs generally rent out single-tenant properties and require the tenant to pay for most property-level operating costs. While any single property is high-risk, across a large enough portfolio, this is actually a very low-risk investment approach. Realty Income is the largest net lease REIT, with a market cap of a bit over $50 billion and a portfolio that includes over 15,400 properties spread across North America and Europe.
Being so large and diversified, along with the fact that Realty Income has an investment grade rated balance sheet, gives the REIT advantaged access to capital markets. That allows this industry giant to compete aggressively for deals and still make a profit. That said, given the company’s size, it’s likely to be a slow and steady grower over time. But if you’re looking for a foundational holding for your high-yield portfolio, low-risk Realty Income is a name you should get to know very well.
2. Toronto-Dominion Bank: Buy while it’s in the doghouse
The headlines are currently filled with bad news about Toronto-Dominion Bank, which is usually just referred to as TD Bank. It has been fined roughly $3.1 billion for failing to stop its U.S. division from being used to launder money. TD Bank is also going to be heavily monitored by regulators for an indefinite period of time until it regains regulator trust. During that monitoring, TD Bank basically won’t be able to grow its U.S. business (this is called an asset cap). None of this is good news, and TD Bank’s shares have logically fallen. The dividend yield is currently around 5.2%, which is historically high for the company.
Hold your nose and buy TD Bank anyway. Why? First, the effect is only on its U.S. business. The bank’s core Canadian operations are performing just fine and aren’t encumbered in any way. TD Bank is the second largest bank in Canada by deposits and, given the heavy regulation in the country, it has a protected market position. The effect of this fine and the heightened scrutiny in the U.S. market is not going to lead to the demise of TD Bank.
Second, assuming you believe that TD Bank can muddle through this problem, it will eventually start to grow again. Notably, it has already set aside the cash needed to pay the fine, and it has already started the process of upgrading its internal controls. Sure, TD Bank has noted that 2025 will be a transition year in which it has to manage its U.S. business differently. But that’s a temporary headwind that will actually set the company up for long-term success, because it entails a shift toward higher-quality assets. When it has regained regulator trust, U.S. growth will resume from a stronger foundation.
By that point, however, the opportunity to buy this high-quality Canadian bank will likely be gone. That’s why now, during the worst of the headlines, is the time to step aboard. You probably have a little time to buy it, or to add to an existing position, but if you wait too long you could miss this opportunity to own a fairly low-risk turnaround play. While really conservative investors might want to avoid the headline risk of TD Bank, most should feel pretty comfortable buying it and collecting a fat dividend yield while waiting for better days to arrive.
Two high-yield options well worth considering
Realty Income is a “play it safe” investment. TD Bank is a higher-risk choice, but only because of the negative headlines now swirling around the bank. Both offer yields that are well above the level of the average stock. And if you put them both together, well, you get an interesting risk barbell that creates what is really just a moderate-risk high-yield two-stock portfolio.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
-
Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $21,285!*
-
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $44,456!*
-
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $411,959!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of October 14, 2024
Reuben Gregg Brewer has positions in Realty Income and Toronto-Dominion Bank. The Motley Fool has positions in and recommends Realty Income and Vanguard Real Estate ETF. The Motley Fool has a disclosure policy.
Here Are My Top 2 High-Yield Stocks to Buy Now was originally published by The Motley Fool
The habits of millionaires are a topic of interest when it comes to financial advice. After all, unless they received a large chunk of money as an inheritance or gift, most millionaires had to be smart with their money to get where they are.
Learning how millionaires accumulate wealth — and where they keep it — can provide valuable insights for anyone focused on growing their money. One common question is whether or not millionaires keep money in checking accounts.
Studies show that in recent years, millionaires are keeping a significant portion of their wealth in cash. According to CNBC’s , that portion was about 24% in 2023. While this doesn’t necessarily mean a quarter of a millionaire’s wealth is sitting in a checking account, it does indicate the importance of maintaining liquid assets. And a checking account can be a helpful tool for doing so — whether or not you’re a millionaire.
Anyone, regardless of net worth, can find value in a checking account. Checking accounts allow unlimited deposits and withdrawals, check writing, bill pay, and other features to help you manage your money day-to-day.
While millionaires may keep large portions of their wealth in other deposit accounts and investments, some may use a checking account to manage daily spending. Millionaires also recognize the importance of having liquid assets, like funds in checking and savings accounts. Accessible cash lets you cover unexpected expenses without needing to sell off investments, borrow money, or pay a penalty for tapping your retirement savings early.
The amount of money a millionaire keeps in their checking account is highly personal and depends on preference. However, because checking accounts rarely earn competitive — if any — interest, some millionaires intentionally limit their checking account balance. Some may choose to keep the bare minimum, such as a couple of months’ worth of essential expenses, in their checking accounts, keeping the rest of their wealth in more lucrative assets.
Regardless of preference, it would be surprising for a millionaire to keep more than $250,000 in a single checking account. That’s because the Federal Deposit Insurance Corp. (FDIC) only insures up to $250,000 in deposits per institution, per account holder.
While millionaires may use checking accounts for day-to-day financial transactions, they may also use some of the following accounts in addition to, or in place of, a checking account:
-
Savings accounts: Like checking accounts, savings accounts provide a high degree of liquidity, allowing you to access your money as needed for regular or unexpected expenses. High-yield savings accounts, in particular, give millionaires an extra bang for their buck. Some of the best accounts currently offer rates upwards of 4% versus the national average savings account rate of 0.46%.
-
Cash management accounts: Cash management accounts (CMAs) pay competitive interest rates while maintaining more accessibility than a savings account. Some CMAs come with a debit card and ATM access, and many provide extended FDIC coverage limits by “sweeping” additional deposits into partner banks. CMAs are available at brokerages, not banks, facilitating easy transfers between investment and cash accounts.
-
Money market accounts: Similar to CMAs, money market accounts combine features of checking and savings accounts, often paying competitive interest rates and providing check writing and ATM access. Banks and credit unions offer these accounts, which are federally insured. Minimum opening deposit and minimum balance requirements are often higher than those for standard savings accounts.
-
Retirement and tax-advantaged accounts: Millionaires understand the importance of investing for their later years, and retirement accounts such as 401(k)s and IRAs allow them to do so in a tax-advantaged way. Some retirement accounts, like 401(k)s, are offered by certain employers. Others, such as traditional and Roth IRAs, are available to anyone.
-
Brokerage accounts: The IRS limits contributions to tax-advantaged accounts, and millionaires typically invest beyond these limits. They do so with taxable brokerage accounts, which can hold investments such as stocks, bonds, and mutual funds without contribution limits.
-
Other investments, like real estate, commodities, and art: Some millionaires may decide to diversify their portfolio with other investment types. These could include real estate investments, such as investment properties or real estate investment trusts (REITs); commodities, such as metals or energy products; art; and more.
The amount of money millionaires keep in their checking accounts depends on personal preference. While some millionaires may keep six figures in their checking account to maintain a comfortable cash cushion, others may choose to keep the bare minimum in checking. You wouldn’t expect millionaires to keep more than $250,000 in a checking account, however, because balances over this threshold aren’t typically insured.
There’s no single bank that’s a favorite among millionaires; it’s another matter of preference. However, millionaires are likely to bank with institutions that offer private banking to those who meet specific financial requirements. Private banking may include wealth planning services, waived fees, dedicated bankers, and additional perks. J.P. Morgan Private Bank, Citi Private Bank, and Bank of America Private Bank are among some of the most popular banks for millionaires.
Billionaires may have checking accounts, but they likely use accounts that cater to ultra-high-net-worth individuals. These accounts may come with perks such as a dedicated banker, waived fees, and competitive interest rates. Alternatively, billionaires may opt for a cash management account with higher FDIC insurance coverage limits and checking account features.
No rule says you can’t have a million dollars in a checking account, but FDIC insurance typically only covers up to $250,000. Plus, you can get a bigger return on your investment by keeping $1 million elsewhere. One alternative is a cash management account, which acts like a checking account but generally earns higher interest. Plus, many cash management accounts insure more than the standard $250,000 by sweeping funds into multiple partner banks.
Lumen Technologies, Inc. (NYSE:LUMN) shares are trading higher on Monday after the company announced it is partnering with Meta Platforms, Inc. (NASDAQ:META) to significantly increase Meta’s network capacity and help drive its AI ambitions.
Lumen’s partnership offers Meta enhanced flexibility with secure, on-demand bandwidth, supporting its complex computing requirements and enabling it to serve billions daily.
Ashley Haynes-Gaspar, Lumen’s EVP and chief revenue officer, said, “We’ve transformed our company to meet this demand. As Meta’s customers use more AI services across its platforms, we’re helping provide Meta with a seamless, effortless, and flexible network that will meet its growing needs.”
Lumen Technologies said its Private Connectivity Fabric enables long-term network capacity for Meta’s AI.
Alex-Handrah Aimé, director of Meta’s Network Investments stated, “Our AI tools are performing increasingly more complex tasks including enabling conversations in a variety of languages and translating text to images in real time, while helping people interact with the world around them in new, immersive ways.”
Lumen will report third quarter 2024 results on November 5, 2024.
Investors can gain exposure to the stock via Invesco S&P SmallCap Utilities & Communication Services ETF (NASDAQ:PSCU) and First Trust Cloud Computing ETF (NASDAQ:SKYY).
Price Action: LUMN shares are up 9.50% at $7.38 at the last check Monday.
Image via Shutterstock
Read Next:
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga?
This article Lumen And Meta Join Forces To Boost AI With Flexible, On-Demand Network Solutions originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
CoinShares said the United States and Bitcoin led crypto investment product dynamics last week amid growing optimism over a potential Republican election win in the US.
Bitcoin’s private keys won’t be breached any time soon, but the industry still needs to transition to “post-quantum cryptography.”
Despite record European inflows, Bitcoin has been unable to recover above the $70,000 psychological level since July.
Apechain mainnet launch and LayerZero’s integration translated to 100% price upside for APE in recent days.
-
Science & Environment1 month agoHyperelastic gel is one of the stretchiest materials known to science
-
Technology4 weeks agoIs sharing your smartphone PIN part of a healthy relationship?
-
Science & Environment1 month ago‘Running of the bulls’ festival crowds move like charged particles
-
Science & Environment1 month agoHow to unsnarl a tangle of threads, according to physics
-
Science & Environment1 month agoMaxwell’s demon charges quantum batteries inside of a quantum computer
-
Technology1 month agoWould-be reality TV contestants ‘not looking real’
-
Science & Environment4 weeks agoX-rays reveal half-billion-year-old insect ancestor
-
Science & Environment1 month agoSunlight-trapping device can generate temperatures over 1000°C
-
Science & Environment1 month agoLiquid crystals could improve quantum communication devices
-
Science & Environment1 month agoQuantum ‘supersolid’ matter stirred using magnets
-
Womens Workouts4 weeks ago3 Day Full Body Women’s Dumbbell Only Workout
-
Technology3 weeks agoUkraine is using AI to manage the removal of Russian landmines
-
TV3 weeks agoসারাদেশে দিনব্যাপী বৃষ্টির পূর্বাভাস; সমুদ্রবন্দরে ৩ নম্বর সংকেত | Weather Today | Jamuna TV
-
Science & Environment1 month agoLaser helps turn an electron into a coil of mass and charge
-
Science & Environment1 month agoWhy this is a golden age for life to thrive across the universe
-
Science & Environment1 month agoQuantum forces used to automatically assemble tiny device
-
Science & Environment1 month agoA new kind of experiment at the Large Hadron Collider could unravel quantum reality
-
News2 weeks agoNavigating the News Void: Opportunities for Revitalization
-
Football3 weeks agoRangers & Celtic ready for first SWPL derby showdown
-
News3 weeks agoMassive blasts in Beirut after renewed Israeli air strikes
-
Science & Environment1 month agoA slight curve helps rocks make the biggest splash
-
Science & Environment1 month agoNerve fibres in the brain could generate quantum entanglement
-
Science & Environment1 month agoHow to wrap your mind around the real multiverse
-
News1 month ago▶️ Hamas in the West Bank: Rising Support and Deadly Attacks You Might Not Know About
-
Business3 weeks ago
DoJ accuses Donald Trump of ‘private criminal effort’ to overturn 2020 election
-
Business3 weeks agoWhen to tip and when not to tip
-
MMA3 weeks agoJulianna Peña trashes Raquel Pennington’s behavior as champ
-
Science & Environment1 month agoITER: Is the world’s biggest fusion experiment dead after new delay to 2035?
-
Science & Environment1 month agoNuclear fusion experiment overcomes two key operating hurdles
-
Science & Environment1 month agoTime travel sci-fi novel is a rip-roaringly good thought experiment
-
News1 month ago▶️ Media Bias: How They Spin Attack on Hezbollah and Ignore the Reality
-
Technology3 weeks agoSamsung Passkeys will work with Samsung’s smart home devices
-
News2 weeks ago▶ Hamas Spent $1B on Tunnels Instead of Investing in a Future for Gaza’s People
-
Technology3 weeks agoMicrophone made of atom-thick graphene could be used in smartphones
-
MMA3 weeks agoPereira vs. Rountree prediction: Champ chases legend status
-
Sport3 weeks agoWales fall to second loss of WXV against Italy
-
MMA2 weeks ago‘Uncrowned queen’ Kayla Harrison tastes blood, wants UFC title run
-
News1 month ago
the pick of new debut fiction
-
Science & Environment1 month agoPhysicists have worked out how to melt any material
-
News1 month agoOur millionaire neighbour blocks us from using public footpath & screams at us in street.. it’s like living in a WARZONE – WordupNews
-
Technology4 weeks agoWhy Machines Learn: A clever primer makes sense of what makes AI possible
-
Technology1 month agoMeta has a major opportunity to win the AI hardware race
-
Sport3 weeks agoBoxing: World champion Nick Ball set for Liverpool homecoming against Ronny Rios
-
Sport3 weeks agoWorld’s sexiest referee Claudia Romani shows off incredible figure in animal print bikini on South Beach
-
MMA3 weeks agoDana White’s Contender Series 74 recap, analysis, winner grades
-
Technology3 weeks agoMusk faces SEC questions over X takeover
-
Sport3 weeks agoMan City ask for Premier League season to be DELAYED as Pep Guardiola escalates fixture pile-up row
-
News3 weeks agoFamily plans to honor hurricane victim using logs from fallen tree that killed him
-
Sport3 weeks agoCoco Gauff stages superb comeback to reach China Open final
-
Sport3 weeks agoSturm Graz: How Austrians ended Red Bull’s title dominance
-
Technology3 weeks agoThis AI video generator can melt, crush, blow up, or turn anything into cake
-
News3 weeks agoGerman Car Company Declares Bankruptcy – 200 Employees Lose Their Jobs
-
Money3 weeks agoWetherspoons issues update on closures – see the full list of five still at risk and 26 gone for good
-
Technology3 weeks agoThe best budget robot vacuums for 2024
-
MMA3 weeks agoPereira vs. Rountree preview show live stream
-
News2 weeks agoHeavy strikes shake Beirut as Israel expands Lebanon campaign
-
TV2 weeks agoLove Island star sparks feud rumours as one Islander is missing from glam girls’ night
-
MMA3 weeks agoAlex Pereira faces ‘trap game’ vs. Khalil Rountree
-
News3 weeks agoHeartbreaking end to search as body of influencer, 27, found after yacht party shipwreck on ‘Devil’s Throat’ coastline
-
Business3 weeks ago
Sterling slides after Bailey says BoE could be ‘a bit more aggressive’ on rates
-
News3 weeks ago‘Blacks for Trump’ and Pennsylvania progressives play for undecided voters
-
Technology3 weeks agoTexas is suing TikTok for allegedly violating its new child privacy law
-
Science & Environment1 month agoPhysicists are grappling with their own reproducibility crisis
-
Business3 weeks ago
Bank of England warns of ‘future stress’ from hedge fund bets against US Treasuries
-
Business3 weeks agoChancellor Rachel Reeves says she needs to raise £20bn. How might she do it?
-
TV3 weeks agoPhillip Schofield accidentally sets his camp on FIRE after using emergency radio to Channel 5 crew
-
MMA3 weeks agoUFC 307 preview show: Will Alex Pereira’s wild ride continue, or does Khalil Rountree shock the world?
-
Sport3 weeks agoChina Open: Carlos Alcaraz recovers to beat Jannik Sinner in dramatic final
-
Football3 weeks agoSimo Valakari: New St Johnstone boss says Scotland special in his heart
-
Technology3 weeks agoJ.B. Hunt and UP.Labs launch venture lab to build logistics startups
-
News3 weeks agoWoman who died of cancer ‘was misdiagnosed on phone call with GP’
-
Sport3 weeks agoAaron Ramsdale: Southampton goalkeeper left Arsenal for more game time
-
TV3 weeks agoMaayavi (මායාවී) | Episode 23 | 02nd October 2024 | Sirasa TV
-
Technology3 weeks agoPopular financial newsletter claims Roblox enables child sexual abuse
-
Entertainment3 weeks ago“Golden owl” treasure hunt launched decades ago may finally have been solved
-
Technology3 weeks agoOpenAI secured more billions, but there’s still capital left for other startups
-
News3 weeks agoHull KR 10-8 Warrington Wolves – Robins reach first Super League Grand Final
-
Technology3 weeks agoThe best shows on Max (formerly HBO Max) right now
-
News2 weeks agoBalancing India and China Is the Challenge for Sri Lanka’s Dissanayake
-
Science & Environment1 month agoA tale of two mysteries: ghostly neutrinos and the proton decay puzzle
-
Business4 weeks ago
Eurosceptic Andrej Babiš eyes return to power in Czech Republic
-
Sport1 month agoJoshua vs Dubois: Chris Eubank Jr says ‘AJ’ could beat Tyson Fury and any other heavyweight in the world
-
News1 month ago
The Project Censored Newsletter – May 2024
-
Technology4 weeks agoArtificial flavours released by cooking aim to improve lab-grown meat
-
Technology3 weeks agoEpic Games CEO Tim Sweeney renews blast at ‘gatekeeper’ platform owners
-
Science & Environment3 weeks agoMarkets watch for dangers of further escalation
-
Health & fitness3 weeks agoNHS surgeon who couldn’t find his scalpel cut patient’s chest open with the penknife he used to slice up his lunch
-
Technology3 weeks agoApple iPhone 16 Plus vs Samsung Galaxy S24+
-
Business3 weeks ago
Head of UK Competition Appeal Tribunal to step down after rebuke for serious misconduct
-
Business3 weeks ago
The search for Japan’s ‘lost’ art
-
Technology3 weeks agoHow to disable Google Assistant on your Pixel Watch 3
-
Money3 weeks agoPub selling Britain’s ‘CHEAPEST’ pints for just £2.60 – but you’ll have to follow super-strict rules to get in
-
Technology3 weeks agoA very underrated horror movie sequel is streaming on Max
-
Technology3 weeks agoUniversity examiners fail to spot ChatGPT answers in real-world test
-
MMA3 weeks agoHow to watch Salt Lake City title fights, lineup, odds, more
-
News3 weeks agoLiverpool secure win over Bologna on a night that shows this format might work
-
Technology3 weeks agoAmazon’s Ring just doubled the price of its alarm monitoring service for grandfathered customers
-
Technology3 weeks agoGmail gets redesigned summary cards with more data & features
-
Politics3 weeks ago
Rosie Duffield’s savage departure raises difficult questions for Keir Starmer. He’d be foolish to ignore them | Gaby Hinsliff
-
News3 weeks agoHungry customer left gobsmacked as two blokes riding giant HORSES stroll into local chip shop
You must be logged in to post a comment Login