Brookfield Infrastructure Partners L.P. (BIP), Lockheed Martin Corporation (LMT) – A Winning Combination: 5 High-Yield Stocks with Robust Dividend Growth

This REIT has characteristics of a defensive recession-resilient play, but it also boasts a strong growth potential. The company’s fundamentals are strong, as this REIT operates at a high occupancy rate of 83.3%, currently above the average for this industry. The long-term outlook for the industry and the REIT is positive as the percentage of seniors is expected to swell in the years ahead and skilled nursing facilities continue to present the lowest cost-setting of care with growing demand and limited supply. The company has stable cash flows, low leverage, ample liquidity, and no material near-term lease expirations or debt maturities. Despite a major run-up in its unit price, this REIT is still trading at a low 13.0x forward adjusted FFO, well below the forward multiple of its peers as a group.

Final thoughts

There are plenty of high-yield stocks in the marketplace, but only a select few exhibit solid dividend growth rates as impressive as the aforementioned companies. From Omega Healthcare Investors Inc (NYSE:OHI)’s REIT-boosted payout, to TAL International Group’s old world strength, there are plenty of reasons to pay attention to this group we’ve discussed. Lockheed Martin Corporation (NYSE:LMT), Brookfield Infrastructure Partners L.P. (NYSE:BIP) and British American Tobacco PLC (ADR) (NYSEMKT:BTI) are also worth members of this “fab five,” and like this market-beating strategy, we’ll be watching closely for the remainder of 2013 and beyond.

Disclosure: none