3 Stocks With High Dividend Yields
Investing in high-yielding dividend stocks can be risky. Sometimes high yields are associated with plunging stocks and unsustainable dividends. That's why it usually makes sense not to invest in companies whose dividends are above 5%. However, that doesn't mean all companies that pay high dividends are bad investments.
Westlake Chemical Partners (NYSE: WLKP), NewLake Capital Partners (OTC: NLCP), and Lazard (NYSE: LAZ) are often overlooked, despite their generous dividends that yield 5% or more. Westlake Chemical Partners' ownership structure is complicated, and that confusion may turn off some investors. NewLake has only been in business since 2019, so it is unknown to many. Lazard is an investment bank that specializes in advising on mergers and acquisitions (M&A), so corporate officers are more familiar with the company than typical retail investors are. All three stocks trade at relatively low multiples, which makes them enticing.
Westlake Chemical Partners is often confused with Westlake Chemical, but the former is a master limited partnership (MLP) formed by Westlake Chemical to acquire and produce ethylene. It owns a 22.8% interest in Westlake Chemical OpCo, which has an ethylene pipeline, as well as plants in Kentucky and Louisiana that turn ethane into ethylene. Ethylene is used to make polyethylene, the most commonly produced plastic, used mostly for packaging; and polyvinyl chloride (PVC), a plastic with many uses, including piping, siding, blood bags, tubing, wire insulation, and cable insulation.
Source Fool.com
