3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

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Higher-yielding dividend stocks tend to be higher-risk investments. However, they can also offer higher rewards. If they can navigate their issues, they can supply investors with a very lucrative income stream over the long term.

Crown Castle (NYSE: CCI), EPR Properties (NYSE: EPR), and W. P. Carey (NYSE: WPC) currently stand out for their enticing dividend yields (all currently over 6%, which is significantly higher than the S&P 500’s 1.2% yield). While the trio of real estate investment trusts (REITs) have faced some recent headwinds that have impacted their dividends, they are moving past those issues. Because of that, they appear poised to generate a lot of dividend income for their investors over the next decade.

Crown Castle’s dividend currently yields 6.3%. The infrastructure REIT focused on data infrastructure, such as cell towers, has hit a speed bump in recent years. Higher interest rates and tenant issues have weighed on its growth. As a result, the company expects its adjusted funds from operations (FFO) to decline by about 8% this year.

Those issues have forced Crown Castle to make some changes. The company has shifted its focus to higher-returning capital projects, causing it to cut its growth spending plans. It has also launched a strategic review of its fiber business. These moves should boost its cash flow and returns, putting it in a better position to self-fund organic growth opportunities.

As CEO Steven Moskowitz stated in the third-quarter earnings release:

Looking ahead, we continue to be optimistic about the long-term value creation opportunities in our tower, small cell, and fiber solutions offerings. Across all forms of digital connectivity, the U.S. is generating record annual increases in data consumption, which we expect to drive continued demand for communications infrastructure.

That demand picture should get the REIT back on a growth trajectory in the future. In the meantime, Crown Castle has been holding its dividend flat to retain additional cash to fund its growth. It should be able to start growing its dividend again (it had delivered 7% compound annual dividend growth before pressing pause last year) once it gets past its current headwinds.

EPR Properties currently pays a monthly dividend that yields 8%. The specialty REIT focused on experiential real estate, like movie theaters and attractions, has battled pandemic-related headwinds in recent years. Many of its tenants couldn’t operate during that period, which had lasting effects on their financials (one theater tenant ultimately filed for bankruptcy). As a result, the REIT had to temporarily suspend its dividend, and when it brought it back, it was at a lower level.

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