5 Fat Dividend Yields to Consider: Sasol Limited (ADR) (SSL) and More

Omega Healthcare Investors Inc (NYSE:OHI) , a real estate investment trust (REIT) focused on health care, is yielding 6.5%. It, too, has a payout ratio higher than we’d like to see, with payouts surpassing income. The dividend has been hiked by an annual average of more than 20% over the past five years, and that rate might not continue without stronger top- and bottom-line growth. Revenue has been growing by double digits, though. In 2012, the company’s revenue from operations rose 20%, funds from operations advanced 29%, and net income more than doubled. Management expects to spend $200 million on investments in 2013, and has lowered its cost of borrowing, profiting from our environment of low interest rates. Omega specializes in nursing homes and stands to benefit as our population ages. Some worry, however, that health-care reforms will pressure the company to cut costs more.

BreitBurn Energy Partners L.P. (NASDAQ:BBEP) hasn’t been upping its dividend markedly in recent years, but with a recent yield of about 9.6%, that’s hard to complain about. Its revenue and earnings have been volatile in recent years, but have generally been heading upward. Bulls like that, as well as the long expected life of its oil and gas reserves, its hedging practices, and its solid balance sheet. Bears worry about whether it will be smart in its acquisitions and whether it might need to reduce its dividend, which it has done in the past.

The article 5 Fat Dividend Yields to Consider originally appeared on Fool.com and is written by Selena Maranjian.

Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, has no position in any stocks mentioned. The Motley Fool recommends Sasol.

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