In the ever-evolving world of high dividend investments, a notable addition stands out in the Best High Dividend Stocks model portfolio. This mid-cap Utilities Master Limited Partnership (MLP) brings a blend of yield attractiveness and dividend safety, making it a compelling choice for discerning investors.
The stock shines with a forward dividend yield of 6.44%, placing it in the top echelon of high-yield stocks, a noteworthy achievement considering the industry average of 7.1%. However, it’s crucial to approach high yields with caution, as they can sometimes signal dividend traps. This addition counters such concerns with a reassuringly low forward payout ratio of 17%, aligning closely with the industry average of 29%. This balance suggests a sustainable dividend policy, an essential factor for long-term investment strategies.
Investors can anticipate the next payout around February 16, estimated at $0.396 per share. This upcoming distribution not only underscores the stock’s dividend consistency but also highlights its potential for income generation.
Delving deeper into this investment opportunity, an in-depth analysis awaits. This analysis explores the intricate balance between yield and safety, alongside an evaluation of potential returns and associated risks. While arriving at our recommendation, we’ve also factored in the growth drivers and financial results discussed by the company management during their Q3 2023 earnings call held on November 2, 2023.