Dividend stocks are shares of a company that pay regular cash distributions to its shareholders, usually on a quarterly or annual basis. These distributions can provide a steady income stream, especially during times of market turmoil when stock prices can be volatile. In this article, we will introduce three high dividend stocks to consider for investment in 2023 in the highly volatile market.
During times of high market volatility, high dividend stocks can reduce investment risk by providing a steady stream of income through cash distributions. This can help to offset potential losses from fluctuations in the stock price and provide a more stable return on investment. Additionally, companies that consistently pay high dividends are typically more established and financially stable, making them a safer investment during uncertain market conditions.
As seasoned stock investor, we have scoured the market to bring you a list of three high dividend stocks that we believe are worth considering for investment in 2023. While these stocks have been deemed attractive based on their dividend yield, it is important to remember that our recommendation is not a guarantee of future performance, and these stocks may fluctuate in value. As always, it is crucial to conduct thorough research and consult with a financial advisor before making any investment decisions. With that being said, we present to you these three potential high dividend opportunities for your investment consideration.
AGNC Investment Corp. (NASDAQ:AGNC) – 12.33% dividend
AGNC Investment Corp. (AGNC) is a real estate investment trust (REIT) that invests in residential mortgage-backed securities. The company’s primary business is to generate income for its shareholders through the ownership of these securities, which are backed by a pool of mortgages on residential properties. AGNC operates as a pass-through entity, meaning that it is required to distribute a majority of its taxable income to shareholders in the form of dividends. As a result, the company’s stock is often attractive to income-seeking investors who are looking for a steady stream of income from their investments.
The benefits of investing in AGNC Investment Corp. (AGNC) include:
- High Dividend Yield: As a real estate investment trust, AGNC is required to distribute a majority of its taxable income to shareholders in the form of dividends. This can result in a high dividend yield for investors.
- Potential for Capital Appreciation: While AGNC’s primary focus is on generating income through dividends, the company’s investments in residential mortgage-backed securities may also appreciate in value, providing the potential for capital gains.
- Diversification: Investing in AGNC provides exposure to the residential mortgage market, which can offer diversification benefits for an investment portfolio.
- Strong Financials: As a large and established company, AGNC has a strong balance sheet and a history of stable and predictable earnings, which can help to reduce the risk associated with investing in a single stock.
It’s important to note that these benefits come with the inherent risks of investing in the stock market and that past performance is not a guarantee of future results. It is always advisable to conduct thorough research and consult with a financial advisor before making any investment decisions.
Alliance Resource Partners, L.P. (NASDAQ:ARLP) – 9.66% dividend
Alliance Resource Partners, L.P. (ARLP) is a publicly traded limited partnership engaged in the production and marketing of coal. According to their website (https://arlp.com), the company is one of the largest coal producers in the eastern United States, operating mines in Illinois, Indiana, Kentucky, Maryland, and West Virginia. ARLP’s business includes mining, processing, and selling a variety of coal products for use in power generation and industrial applications.
In addition to coal production, ARLP also has operations in the transportation and loading of coal. The company operates a network of railcars, barges, and trucks to transport coal to its customers. ARLP’s business is focused on providing low-cost and reliable supplies of coal to power plants and industrial customers.
According to financial data from YCharts (https://ycharts.com), Alliance Resource Partners has a market capitalization of approximately $2.5 billion and has a history of consistent revenue growth over the past several years. The company has also been paying a steady stream of dividends to its shareholders, which has made it an attractive investment for income-seeking investors.
It’s important to keep in mind that the coal industry can be subject to regulatory and economic risks, and that past performance is not a guarantee of future results. As with any investment, it is important to conduct thorough research and consult with a financial advisor before making a decision to invest in Alliance Resource Partners or any other company.
Horizon Technology Finance (NASDAQ:HRZN) – 10.93% dividend
Horizon Technology Finance Corporation is a publicly traded business development company (BDC) that provides venture capital financing for technology and life science companies. The company’s investments are primarily in first and second round financing in companies that are developing new and innovative products and services. Horizon Technology Finance Corporation was founded in 2000 and is headquartered in Farmington, Connecticut, with additional offices in Menlo Park, California. The company’s focus is on providing debt and equity financing to early-stage and growth-stage companies in the technology and life sciences sectors.
Investing in Horizon Technology Finance Corporation can potentially offer several benefits, including:
- Diversification of investment portfolio
- Potential for high returns
- Exposure to the technology financing industry
However, it’s important to note that investing in any company carries risk and it’s important to thoroughly research and understand the company and its financials before making an investment decision.
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In conclusion, investing in high dividend stocks can be a great way to generate passive income while potentially growing your overall portfolio value. The three stocks mentioned in this article are just a few of the many options available to investors in 2023. As always, it’s important to do your own research and consult with a financial advisor before making any investment decisions. With the right strategy and a bit of patience, these stocks could provide a solid foundation for a profitable and sustainable investment portfolio in the years to come.
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