4 Secret Stocks Yielding 7%-9% Get Wall Street Love and Nobody Knows

There are over 12,000 publicly traded stocks in the United States; not even the most intelligent investors with the best tools can find them all immediately. Many investors and traders typically maintain a small list of key stocks they follow when seeking capital gains or high-yield dividends. We decided to screen our 24/7 Wall St. high-yield database, looking for very obscure but solid companies yielding at least 7% with solid dividend coverage. Four well-run companies hit our screens, and all look like timely buys now, and while Wall Street loves them, they remain well off the radar screens of many. They won’t be for long if interest rates start to fall and they continue to post solid results. Finding lesser-known stocks with high dividend yields requires a focus on companies that may not be household names or widely covered by financial media, yet still offer strong fundamentals and reliable payouts.

Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence. The more passive income can help cover rising costs, such as mortgages, insurance, taxes, and other expenses, the easier it is for investors to set aside money for future needs as they prepare for retirement. Dependable recurring dividends from quality, high-yield stocks are a recipe for success, and our four secret Wall Street favorites are the perfect ideas in a frothy, overbought stock market. 

Why do we cover the high-yielding dividend stocks?

 

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973-2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Apple Hospitality REIT

Apple Hospitality REIT owns one of the largest portfolios of upscale, select-service hotels in the United States.  Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust that stands out in the market with its unique offering.

The Company has 224 hotels and over 30,000 rooms across 37 states,  and is a significant player in the hospitality REIT sector but often overlooked compared to larger REITs. The company pays a monthly dividend, which is attractive for income-focused investors. Its diversified hotel portfolio and stable cash flows from management agreements make it a solid choice, though it’s sensitive to economic cycles affecting travel.

The company’s hotel portfolio comprises 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels.

Its hotels operate primarily under Marriott or Hilton brands. They are operated and managed under separate management agreements with 16 hotel management companies, including:

• Hilton Garden Inn
• Hampton
• Courtyard
• Residence Inn
• Homewood Suites
• SpringHill Suites
• Fairfield
• Home2 Suites
• TownePlace Suites
• AC Hotels
• Hyatt Place
• Marriott
• Embassy Suites
• Aloft
• Hyatt House

Apple Hospitality hotels are in various states, including Alaska, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Kansas, Louisiana, Michigan, and others.

Bank of America has a Buy rating, with a $15 target.

Healthpeak Properties

This leading company invests in real estate related to the healthcare industry, including senior housing, life science, and medical offices. Healthpeak Properties, Inc. (NYSE: DOC) is a fully integrated real estate investment trust (REIT).

The Company acquires, develops, owns, leases, and manages healthcare real estate across the United States. It owns, operates, and develops real estate focused on healthcare discovery and delivery. Healthcare REITs are less discussed than commercial or residential REITs, and Healthpeak’s specific focus on labs and CCRCs is a specialized niche that doesn’t attract as much retail investor attention.

Healthpeak Properties segments include:

• Lab
• Outpatient medical
• Continuing care retirement community (CCRC)

The Outpatient medical segment owns, operates, and develops outpatient medical buildings, hospitals, and lab buildings.

The lab segment properties contain laboratory and office space, and are leased primarily to:

• Biotechnology
• Medical device and pharmaceutical companies
• Scientific research institutions
• Government agencies
• Organizations involved in the life science industry

Its CCRC segment is a retirement community that offers independent living, assisted living, memory care, and skilled nursing units, providing a continuum of care within an integrated campus.

Baird has an Outperform rating with a $22 price target.

USA Compression Partners

USA Compression Partners provides natural gas compression services under term customer contracts. While perhaps less known than their peers, this top company pays shareholders one of the largest dividends in the industry.  USA Compression Partners, LP. (NYSE: USAC) provides natural gas compression services and operates in the midstream energy sector, which is less glamorous than exploration or production companies. Its specialized role in compression services keeps it out of the spotlight for most investors. At the same time, it pays a substantial dividend, supported by long-term contracts that provide stable cash flows, even in volatile energy markets.

The company offers compression services to:

• Oil companies and independent producers
• Processors
• Gatherers
• Transporters of natural gas and crude oil, as well as operating stations

USA Compression Partners primarily provides natural gas compression services to infrastructure applications, including centralized natural gas gathering systems, processing facilities, and gas lift applications for crude oil wells.

Raymond James has assigned an “outperform” rating with a $30 target price for this company.

CTO Realty Growth

CTO Realty Growth is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties. With a rich dividend and solid upside potential, this unknown REIT makes sense for passive income investors. CTO Realty Growth, Inc. (NYSE: CTO) owns and operates a portfolio of high-quality, retail-based properties located primarily in higher-growth markets in the United States. With a 96% leased occupancy rate and a strategy targeting high-yield acquisitions, CTO offers strong income potential. It has paid dividends for 48 consecutive years, reflecting reliability. In addition, CTO’s smaller market cap and focus on retail REITs in specific growth markets make it less visible compared to larger, more diversified REITs. 

The Company’s segments include:

• Income properties
• Management services
• Commercial loans and investments
• Real estate operations

CTO holds a stake in Alpine Income Property Trust, adding diversification. With a 96% leased occupancy rate and a strategy targeting high-yield acquisitions, CTO offers strong income potential. It has paid dividends for 48 consecutive years, reflecting reliability.  (NYSE: PINE), a publicly traded net lease REIT.

The commercial loans and investments segment includes a portfolio of five commercial loan investments and two preferred equity investments.

Its income property operations consist of income-producing properties.

CTO Realty Growth’s business includes its investment in PINE.  The portfolio of properties includes:

• Carolina Pavilion
• Millenia Crossing
• Lake Brandon Village
• Crabby’s Oceanside
• Fidelity
• LandShark Bar & Grill
• Granada Plaza
• The Strand at St. Johns Town Center
• The Shops at Legacy
• Price Plaza

Raymond James has a Strong Buy rating on the shares with a $22 target price objective.

 

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