Investing $100,000 in These 3 Dividend Stocks Could Give You $6,300 in Annual Income

Social Security does not provide enough income for most Americans to easily retire. That was not what it was intended for. You need additional sources of income for retirement.

Dividends can help complement social security. But it can be difficult to choose from the thousands of stocks that offer dividends. However, some are primarily characterized by their high yields. If you invest a total of $ 100,000 in these three dividend stocks, you can make nearly $ 6,300 in annual income.

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1. Partner for corporate products

Partner for corporate products (NYSE: EPD) is one of the leading midstream energy companies. The company’s dividend yield is currently just under 8.6%. If you invested a third of your initial $ 100,000 in enterprise stock, you would make a little more than $ 2,850 in annual income.

But is Enterprise’s dividend reliable? My Motley Fool colleague Kody Kester considers Enterprise to be one of the safest high yield dividend stocks in the world. I think Kody is probably right.

Enterprise has increased its dividend for 23 straight years. The near-term outlook appears solid as the global economy recovers from the COVID-19 pandemic.

The company’s long-term prospects are also better than expected. The global energy demand will grow in the coming decades. The demand for oil and natural gas is expected to increase, although there will be a shift towards renewables. Companies should be in a strong position to benefit from this trend.

2. Confidence for medicinal properties

Trust for medicinal properties (NYSE: MPW) stands out as another great alternative for making a retirement income. With a dividend yield of nearly 5.3%, an initial investment of $ 33,333 would generate more than $ 1,750 in annual income.

The Real Estate Investment Trust (REIT) owns around 440 hospital facilities, most of them in the US and Europe. It is the second largest nongovernmental hospital owner in the world.

MPT’s portfolio is diversified across 52 hospital operators. The largest property only accounts for 2.6% of total gross assets. The company’s largest tenant, Steward Health, has a strong liquidity position.

The hospital REIT has increased its dividend for eight straight years at an average annual growth rate of 4.2%. The stock has also done well, up more than 80% over the past five years.

3. Verizon Communications

Between Enterprise Products Partners and Medical Properties Trust, you could earn around $ 4,600 annually. This amount can be increased to more than $ 6,300 by investing the remaining third of your original $ 100,000 in Verizon Communications (NYSE: VZ) Camp.

Verizon offers a dividend yield north of 5.1%. And that dividend is relatively safe. The telecommunications giant is currently using less than half of its revenue to fund the dividend program.

Don’t expect Verizon to offer a staggering increase in value for its stock. The share’s performance over the past five years has barely moved in positive territory. The next year could be tough for wireless operators in general, and Verizon could face challenges competing for customers.

However, the adoption of high-speed 5G networks should be a growth driver for Verizon for the rest of this decade. Even if the stock isn’t a big winner, its dividend will be.

This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.