The COVID-19 outbreak has had a significant impact on dividend stocks this year as several companies reduced or suspended their payouts to preserve cash. Two of the hardest-hit sectors were energy stocks and REITs. Investors remain worried about other payouts in those industries, which has pushed down valuations, causing yields to rise. That’s allowing investors to scoop up some compelling dividend yields in those beaten-down sectors. Here are six stocks yielding over 6% that income investors won’t want to miss.
Brookfield Property: 9% yield
Brookfield Property (NASDAQ:BPY)(NASDAQ:BPYU) has been under pressure this year because of the impact the COVID-19 outbreak has had on its core office and retail portfolios. However, the company’s offices have held up reasonably well as work-from-home trends don’t seem like they’ll have a long-term impact. Meanwhile, sales at its mall properties are recovering, which has it optimistic about that sector’s future. Add those factors to Brookfield’s strong balance sheet, and it has the liquidity to maintain its monster dividend through the current turmoil in the real estate sector.
Brandywine Realty Trust: 7.5% yield
Brandywine Realty (NYSE:BDN) owns a diversified portfolio of mixed-use office, lab, residential, co-working, and retail properties in the Philadelphia, D.C., and Austin markets. These properties have held up remarkably well, as the company collected 99.5% of the rent it billed during the third quarter. The company’s dividend payout ratio was a conservative 56% during the period. Add that to Brandywine’s solid balance sheet, and it’s in “excellent shape,” according to CEO Jerry Sweeney.
Enbridge: 7.9% yield
Canadian energy infrastructure giant Enbridge (NYSE:ENB) has been almost completely immune to this year’s oil market downturn, as it’s on track to achieve the midpoint of its initial cash flow guidance range. Between that and its strong balance sheet, Enbridge’s monster dividend is on rock-solid ground. Meanwhile, thanks to its financial flexibility and backlog of commercially secured expansion projects, — including several offshore wind farms — it has plenty of fuel to keep growing its dividend, which it has done in each of the last 25 years.
Phillips 66: 6.2% yield
Refining giant Phillips 66 (NYSE:PSX) has been under some pressure this year because the COVID-19 outbreak caused gasoline and jet fuel demand to fall off a cliff. However, the company still generated enough cash last quarter to cover its dividend with room to spare while its top-notch balance sheet helped fill the gap in funding its capital projects. Meanwhile, the company will be one of the biggest beneficiaries of a future COVID-19 vaccine since that should fuel a rebound in refined product consumption. With those hopes getting a shot in the arm this week, Phillips 66’s dividend looks safe.
SL Green Realty: 6.6% yield
SL Green Realty (NYSE:SLG) is the leading office landlord in New York City, which has been under a lot of pressure from the COVID-19 outbreak. However, the company is still seeing demand for office space, especially from industries where collaboration is crucial, like legal, financial, and publishing companies. Meanwhile, it’s also seeing strong demand for trophy office buildings, as evidenced by the recent sale of 410 Tenth Avenue for $952.5 million. That price represented a substantial profit on its investment in the property and was the largest commercial property sale in the U.S. since March. Furthermore, it will give the office REIT the cash to pay down debt and buy back its deeply discounted stock, which will both put its high-yielding dividend on a firmer foundation.
Williams Companies: 8.1% yield
Natural gas pipeline giant Williams Companies (NYSE:WMB) is on track to achieve the midpoint of its cash flow guidance range despite all the energy market turmoil this year. That would provide it with enough cash to cover its big-time dividend with $1.2 billion to spare, which is more than enough to finance its entire growth spending program. Given that and the likelihood that the energy market will continue recovering next year, its payout looks to be on a firm foundation.
Attractive income streams on sale
Investors have punished most energy and real estate stocks this year because the COVID-19 outbreak had an outsize impact on those sectors. However, not all dividends are in danger of a reduction, leaving income investors to scoop up some compelling income streams in those sectors.