Got $1,000? These High-Yield Dividend Stocks Could Turn It Into Nearly $80 of Annual Passive Income.
Higher interest rates have been a passive income investor's dream scenario. Even lower-risk fixed-income investments like government bonds and bank CDs offer high yields these days. Because of that, equity investments, which are riskier by nature, have to offer even higher yields to entice income-seeking investors.
For example, several high-quality yield-focused master limited partnerships (MLPs) currently pay around 8%. Because of that, a $1,000 investment could generate around $80 of annual passive income. Energy Transfer (NYSE: ET) and (NYSE: MPLX) are two great options for income-seeking investors.
Energy Transfer's distribution currently yields right around 8%. That's several times higher than the average stock (the S 500's dividend yield is 1.3%). Higher-yielding dividend stocks are often at higher risk of a reduction, but that's unlikely in Energy Transfer's case. Instead, the pipeline company plans to increase its payout by 3% to 5% annually.
Source Fool.com
MPLX L.P. Stock
MPLX L.P. is currently one of the favorites of our community with 14 Buy predictions and no Sell predictions.
Based on the current price of 11.77 € the target price of 42 € shows a potential of 256.84% for MPLX L.P. which would more than double the current price.
