Looking for income stocks with potential for strong returns? Here are three stocks that have a buy rank and attractive income characteristics:
Office Properties Income Trust (OPI)
As a real estate investment trust, OPI has seen its Zacks Consensus Estimate for current year earnings rise by 9.2% in the past 60 days. It boasts a dividend yield of 21%, well above the industry average of 4.4%. This Zacks Rank #1 company offers a promising opportunity for investors looking for solid income.
Employers Holdings, Inc. (EIG)
EIG is a commercial property and casualty insurance company that has witnessed a 6.2% increase in its Zacks Consensus Estimate for current year earnings in the last 60 days. With a dividend yield of 2.7%, higher than the industry average of 2.6%, this Zacks Rank #1 company presents a compelling income option.
Mercantile Bank Corporation (MBWM)
MBWM, a bank holding company for Mercantile Bank of Michigan, has experienced a 4.9% rise in the Zacks Consensus Estimate for current year earnings in the past 60 days. It offers a dividend yield of 4.2%, compared to the industry average of 3.9%. With a Zacks Rank #1, MBWM is worth considering for income-focused investors.
For a comprehensive analysis of these top income stocks and more, check out our full list of top-ranked stocks here.
Why Invest in Income Stocks?
Investing in income stocks can provide investors with a reliable source of cash flow through dividends. Unlike growth stocks, which prioritize capital appreciation, income stocks aim to generate consistent income for shareholders. They are often found in sectors such as real estate, financial services, and utilities.
Fact vs. Myth: Are Income Stocks a Safe Bet?
Myth: All income stocks are low-risk investments.
Fact: While income stocks generally offer more stability and consistent returns compared to growth stocks, it’s important to note that not all income stocks are low-risk investments. Investors should still conduct thorough research and due diligence to evaluate the financial health and performance of income stocks before investing.
Tips for Choosing Income Stocks
Considering income stocks for your portfolio? Here are some tips to help you make informed investment decisions:
- Research the company’s financials and dividend history to assess its stability and ability to sustain dividend payments.
- Look for companies with a track record of dividend growth or consistent dividend payments.
- Consider the company’s industry and economic conditions to gauge its potential for future dividend growth.
- Evaluate the company’s competitive position and market share to determine its long-term viability.
- Diversify your income stock portfolio to reduce risk and maximize potential returns.
By following these tips, investors can increase their chances of finding quality income stocks that align with their investment goals and risk tolerance.
Remember, income stocks can provide a reliable source of income, but it’s essential to evaluate each investment opportunity carefully. Conduct thorough research and consider seeking advice from a financial advisor before making any investment decisions.
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