Arguably the most important decision investors have to make is which stocks to buy. But when to buy them is also high on the list. Sometimes, it makes sense to wait to buy a particular stock. However, there are other times when it's best to act quickly.
I think several stocks fit into the latter category right now for income-seeking investors. Below are three high-yield dividend stocks to buy sooner rather than later.
1. National Trust of Storage Affiliates
National Trust of Storage Affiliates (NYSE:NSA) it's a real estate investment trust (REIT) which focuses on self-storage units. It operates 1,052 self-storage properties in 42 states and Puerto Rico.
As a REIT, NSA must return at least 90% of its income to shareholders in the form of dividends. The company's forward dividend yield stands at 4.8%. NSA has increased its dividend by 75% over the past five years.
The self-storage sector has proven to be resilient over the years, generating higher returns than most REIT sectors with lower volatility. NSA has been one of the best performing self-storage REITs on the market, generating higher core income. funds from operations (FFO)) per-share growth since its IPO in 2015 than most of its peers.
Why buy NSA stock now? For one, the Federal Reserve is likely to cut rates later this month. REITs tend to respond well to rate cuts because their borrowing costs are reduced. NSA should especially benefit from rate cuts, as they could spur a surge in home buying, which often leads to increased demand for storage units during the homeowners' moving process.
2. Real estate income
Real estate income (NEW YORK STOCK EXCHANGE:O) is another REIT that is a fantastic stock for equity investors to buy sooner rather than later. It ranks as the seventh largest REIT in the world with 15,450 properties.
I suspect most fixed-income investors will like Realty Income's forward dividend yield of 5.07%. However, they will probably love the REIT's dividend history. Realty Income has increased its dividend for 29 consecutive years with a compound annual growth rate of 4.3%.
This REIT's business is rock solid. Realty Income's real estate portfolio is diversified across more than 1,550 clients operating in 90 industries. Approximately 90% of the company's rents are protected from economic downturns.
The main reason to buy Realty Income stock now is the likely interest rate cut that is coming. Like NSA, Realty Income stands to benefit from lower borrowing costs if the Federal Reserve makes a move, as is widely expected. Lower rates will also cause bond yields to fall, which could make solid REIT stocks like Realty Income more attractive to fixed-income investors as they move away from bonds.
3. Unified parcel service
No, not every high-yield dividend stock worth buying early is a REIT. Unified parcel service (NYSE: UPS) is the world's largest package delivery company, serving customers in more than 200 countries and territories.
UPS offers a juicy forward dividend yield of 5.11%. The company has increased its dividend for 15 consecutive years. I expect this streak to continue for years to come.
UPS has certainly faced some challenges. Shipping volumes are down compared to levels seen during the worst of the COVID-19 pandemic. The company has also incurred higher costs associated with its union contract signed last year.
These issues, however, highlight why now is the time to buy UPS stock. The company is turning things around, with U.S. shipping volumes increasing in the second quarter for the first time in nine quarters. Union contract expenses were largely concentrated in the first half of the year, meaning UPS's results should improve going forward. The company has also resumed share buybacks, a positive sign that should reassure investors.
Should You Invest $1,000 in National Storage Affiliates Trust Right Now?
Before purchasing National Storage Affiliates Trust shares, please consider the following:
He Motley Fool Stock Advisor The team of analysts has just identified what they believe to be the Top 10 Stocks for investors to buy now…and National Storage Affiliates Trust wasn't among them. The 10 stocks that made the cut could produce outsized returns in the years ahead.
Consider when Nvidia I made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, You would have $661,779!*
Stock market advisor offers investors an easy-to-follow blueprint for success, including guidance on how to build a portfolio, regular analyst updates, and two new stock picks each month. Stock market advisor The service has more than quadruple the return of the S&P 500 since 2002*.
*Stock Advisor performance as of September 3, 2024
Keith Speights has positions in United Parcel Service. The Motley Fool has positions in Realty Income and recommends it. The Motley Fool recommends United Parcel Service. The Motley Fool has a Disclosure Policy.
3 High-Yield Dividend Stocks to Buy Sooner Rather Than Later Originally published by The Motley Fool