5 High Yield Income Stocks

by Scott on July 2, 2008

Part of my research for passive income opportunities led me to look at stocks and bonds that offer to produce consistent income. Currently I have a CD at the bank that will mature in July, and I would like to find a higher yielding alternative. My maturing CD had a yield of 4.15%

My search for high yielding stocks led me to a site discussing Canroys as a source of passive income. I first learned about Canadian Income Funds, or Royalty Trusts, from Living Off Dividends. These Canroys such as Harvest Energy (HTE) and Pengrowth Energy (PGH) offer a high yielding dividend of 13-15% for these oil and gas producers. Much higher than the yield of Exxon (XOM) 1.8% or Chevron (CVX) 2.7%. Exxon and Chevron are also growth or value stocks and Canroys have a set lifespan of 10-30 years. The companies payout income from oil and gas exploration and don’t reinvest, as a Chevron would. The Canroys basically have a life span of 10-30 years. These yields will be impacted based on many factors, including price of oil/gas and reserve amounts. Some of these reserves may only last 9-10 years, but this could still offer wonderful opportunity for consistent income.

Something else to consider is the current price of these stocks. The oil and gas sector is red hot now and I wouldn’t want to put all my eggs in one basket here. But, I think Canroys or other income producing stocks, could fit well with my desired passive income stream.

5 High yield income stocks that could be source of passive income:

1. Pengrowth Energy (PGH) Oil and gas exploration company based out of Calgary that currently has a yield of 13.3%

2. Frontline (FRO) Oil and natural resources shipping company based out of Bermuda. Current yield of 15.4%

3. Hugoton Royalty Trust (HGT) owns natural gas assets and currently yields 10.2%

4. Dominion Resources Black Warrior Trust (DOM) owns natural gas properties in Alabama and has a current yield of 11.4%

5. Pfizer (PFE) Huge drug company that has been beaten down and is on the list for income and potential price appreciation. Could this be a value play and a passive income opportunity? Current yield is 7.4%

If you have some stocks that are paying a good consistent dividend and high yield, let me know.

If you enjoyed this post, make sure you subscribe to my RSS feed!

Similar Posts

{ 8 comments… read them below or add one }

1 passivefamilyincome July 2, 2008 at 8:10 pm

FRO is great! I also own HTE. I have seen a lot of bloggers recommend ACAS but I have not pulled the trigger yet. The financial stocks are tempting but who knows how deep the dividend cuts will be.

2 Living Off Dividends & Passive Income July 2, 2008 at 8:35 pm

Canadian Oil Trust are similar to American MLPs (master limited partnerships) in terms of structure and high yields (ex. TYY yields aound 6%).

However, unlike MLPs they actively acquire new properties and in many cases, the reserve life goes up every year!

I think the biggest concern is the taxation change in Canada – they might lose their REIT-like tax status.

thanks for the link!

3 Jim @ CashBackIdeas.com July 3, 2008 at 7:12 am

Hey Scott – this is a great list. I found some of these by looking at Harry Domash’s “Big List” of dividend stocks. Another one from that list I decided to invest in is a business development company called GSC Investment Corp (symbol:GNV). Their yield is currently at 17%. They’re in an out-of-favor sector (loans), so their stock is at a depressed level right now.

4 Jim @ CashBackIdeas.com July 3, 2008 at 7:15 am

Well nuts … I forgot to mention where Harry’s “Big List” is… it’s at http://dividenddetective.com/big_dividend_list.htm

5 Paul Eilers July 7, 2008 at 8:46 pm

You mentioned Pfizer (PFE). We have Merck (MRK) stock. I wonder if it too is on the upswing.

6 Scott July 8, 2008 at 2:36 pm

@Passive Family Income: The financials, home builders, and even tech are out of favor and may be a good time to invest in some of the bigger names.

@Living off Dividends & Passive Income: Thank you again for your post on Canroys. I had never heard of this investment and it has changed the way I look at my portfolio options.

@Jim Thanks for the link to the dividend detective. Lot’s of stocks to look at there and research.

@Paul Yep, PFE and MRK can be great stocks for the long-term.

7 Online Dividends August 28, 2008 at 12:52 pm

Scott,

I am sorry to disagree with you on the high yield stocks here but i would definitely advise people to purchase stocks which have a history of constantly increasing their dividends for decades. One such list could be found on this site:

http://dividendgrowth.blogspot.com/2008/07/some-cheap-stocks-to-consider.html

8 Warren Contreras March 2, 2010 at 1:57 pm

If you have a little time, what I did was start with websites I could click on ads for a penny each and let my friends all laugh at me. Now a few months later I am doing the laughing all the way to the bank. The secret is to take this free money and put it into high yield funds you would never risk your savings with and let it grow. Now I get an extra $1,000 a month or more and it keeps growing.

Leave a Comment

Previous post:

Next post: