Private letter rulings – these are wonderful documents for companies. They essentially mean that the IRS is OK with your firm using a different tax structure other than a c-corp. For our latest Best High-Yield Dividend Stocks Model Portfolio pick, it has managed to use its private letter ruling to its advantage, providing investors with a nearly 5% dividend yield since its corporate switch.
Our pick is one of the largest owners of billboards, digital signage and other physical advertising infrastructure in the country. It turns out that renting space on a billboard is just like renting an apartment in the eyes of the IRS. As such, our pick was able to become a REIT, passing on its cash flow as dividends in exchange for lower corporate tax rates.
And while you may think that digital rules the advertising roost, billboard and other signage are still a huge portion of advertising budgets. With additional growth in new A.I. linked signage, the ability to use its infrastructure for 5G devices and other revenue avenues, our pick has plenty of future growth potential.
All in all, our pick is a wonderful niche high-yield player for portfolios.
In order to make room for our advertising player, we’ve been forced to remove a regional bank from the list.
You can check out the Best High Dividend Stocks Model Portfolio to explore all the stocks.
