High-Yielding Investments for a Steady Income Stream
With the S&P 500 yield hovering around 1.2%, finding reliable sources of passive income has become increasingly challenging. However, there are still opportunities to be found. Here are two dividend-paying stocks and one exchange-traded fund (ETF) that offer yields over 3.5% and are worth considering.
A Consumer Staples Giant with a Rich History
Kimberly-Clark, a leading consumer staples company, boasts a rich history dating back to 1872. Its impressive portfolio of brands, including Huggies and Kleenex, generates strong and consistent cash flow. This cash flow has enabled the company to maintain a steadfast commitment to rewarding shareholders, with a 3.9% forward-yielding dividend. With a history of increasing dividends for over five decades, Kimberly-Clark has earned the title of Dividend King. At a price-to-earnings ratio of 16.3, which is a discount to its five-year average, now may be an excellent time to invest in this consumer staples giant.
A Packaged-Food Company with a Solid Track Record
J.M. Smucker, a packaged-food company, has faced challenges in recent months due to inflation and weakening pricing power. However, the company’s solid brands, including Jif and Uncrustables, and excellent margins make it an attractive investment opportunity. With a price-to-earnings ratio of just 10.5, J.M. Smucker is undervalued. The company’s 23 consecutive years of dividend increases and 3.8% yield make it an attractive option for income investors.
A Corporate Bond ETF with a High Yield
The Vanguard Total Corporate Bond ETF offers a 4.5% yield, making it an attractive option for income investors. This ETF invests in high-quality corporate bonds with a low default risk, providing a relatively safe investment opportunity. With interest rates expected to decline, this ETF could generate significant returns. Additionally, the ETF’s “ETF of ETF” structure provides diversification, reducing risk for investors.
Investing in These Opportunities
By investing in these high-yielding investments, you can generate a steady stream of passive income. Whether you’re looking for a consumer staples giant, a packaged-food company, or a corporate bond ETF, these options offer attractive yields and relatively low risk. Consider adding them to your portfolio to boost your passive income stream.
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