On November 5, the United States Federal Reserve voted to keep short-term interest rates anchored in the 0% – 0.25% range.
The central bank said it will likely keep interest rates at or around zero until we’ve fully recovered from the coronavirus… Which they don’t expect until the end of 2023.
I don’t know about you, but a 0% – 0.25% yield isn’t enough for me to put my hard-earned money into and feel good about it.
That’s why I went searching for some reliable income generators that pay over 10% annually.
That’s 40x more than what our government is currently paying investors.
All of these income generators run profitable businesses and have been paying dividends consecutively for the last 10 years.
Best of all, they’ve been growing their dividend payments over the last decade as well (unlike the government who’s been lowering interest rates since the 1980’s).
Here are the top three income generating stocks to own today all paying over 10% annually…
Income Generator No. 3: Starwood Property Trust
[finviz ticker=STWD]Dividend Yield: 13%
Starwood Property Trust Inc. (NYSE: STWD) manages real estate in the United States. The company originates, acquires, and manages commercial mortgage loans and commercial mortgage-backed securities in the United States and Europe.
And since it operates as a real estate investment trust (REIT), it’s required to pay a minimum of 90% of all taxable income in the form of dividends to shareholders each year.
The company operates a commercial lending segment, infrastructure lending segment, property segment, and investing and servicing segment. The former acquires and finances mortgages with primary lien positions.
The collateral for these mortgages is mainly office and hospitality properties in Western and Northeastern America. Starwood’s investing and servicing unit primarily generates revenue from the acquisition and sale of commercial mortgage-backed securities.
And right now, the business is doing so well that STWD can afford to pay a massive 13% dividend for the foreseeable future. By my estimations, it could even rise in the next quarter or two.
Like ARCC, Starwood has also never missed a dividend payment since going public in 2009. In fact, the company has increased its dividend 4,700% – from $0.01 in 2009 to $0.48 today.
Shares of STWD are currently trading for $14.70. And I think they’re significantly undervalued. My expectation is for shares to run to $30 over the next 12 months.
That means a potential return for investors of 104%. All the while, you can collect a 13% dividend along the way.
Income Generator No. 2: Ares Capital Corporation
[finviz ticker=ARCC]Dividend Yield: 11%
Ares Capital Corp. (NASDAQ: ARCC) is a US-based closed-ended specialty finance company.
The company’s investment objective is to generate both current income and capital appreciation through debt and equity investments.
Ares Capital primarily focuses on investing in U.S. middle-market companies with investment opportunities. It also invests in largest companies if the deal is right.
Its portfolio comprises of first lien senior secured loans, second lien senior secured loans and mezzanine debt (subordinated unsecured loan), which may include equity components which are diversified by industry and sector.
The company may invest in preferred and common equity investments to a lesser proportion. Its revenue mainly consists of interest and dividend income received from the investment made.
Most importantly, ARCC is currently generating 11% annually for its shareholders.
The company has paid a dividend consistently since 2004. And I don’t see that changing anytime soon.
Income Generator No. 1: Exxon Mobile Corp
[finviz ticker=XOM]Dividend Yield: 10.5%
Perhaps the most underappreciated high yield dividend paying stock today is Exxon Mobile Corp. (NYSE: XOM).
I’m sure you’ve heard of Exxon before. It has over 12,000 gas stations across the U.S. and used to be the most valuable company in the world just seven years ago…
But just in case you don’t know, Exxon Mobil is an integrated oil and gas company that explores for, produces, and refines oil around the world.
In 2019, it produced 2.4 million barrels of liquids and 9.4 billion cubic feet of natural gas per day.
At the end of 2019, the company’s reserves were 22.4 billion barrels of oil equivalent (including 3.8 billion for equity companies), 65% of which were liquids.
Exxon is the world’s largest refiner with a total global refining capacity of 4.7 million barrels of oil per day and one of the world’s largest manufacturers of commodity and specialty chemicals.
It operates its business divisions in North and South America, Europe, the Middle East, North and sub-Saharan Africa, and the Asia-Pacific.
This is a reliable business with a market cap of $140 billion that you can count on paying you a 10.5% dividend if you purchase shares right now.
How to Turn $7 into $1,480 Upfront by Tomorrow Afternoon
What if there were a simple way to make as much as $1,480 or more upfront per day, at home?
Well, now there is.
And thousands of in-the-know Americans are taking advantage of it today.
It’s one of the greatest wealth-building secrets in the market…
Which is why Barron’s calls it “one of the greatest strategies in existence…”
Because it’s a simple transaction required by law to pay you cash upfront when you request it.
Of course, nothing in investing is guaranteed.
But this is about as close as it gets.
Let me show you what I mean…
If you had started doing this a year or so ago, here’s how you would have done versus stocks — a time period that includes the worst crash we’ve seen in a century:
Just imagine what a huge difference that could make in accelerating your income…
Or simply bringing in extra income you may have lost, day after day, week after week.
All you need to get started is your home computer or smartphone, and a simple lesson on how this transaction works.
If you’re looking for a way to make a lot more income…
This just may be the solution you’re looking for.
Right now, InvestorPlace’s trading expert John Jagerson just opened the doors to his new Master Class, in which you can start learning this technique for just $7.
That’s not a typo.
For less than the price of a fancy cup of coffee, you can begin to learn a simple market approach you’ll be able to use for the rest of your life…
One that can literally put thousands of dollars per week into your pocket, every week of the year.
For a limited time, you can view a short presentation here on how to get started in Master Class Lesson #1 for just $7.
