These Top Dividend Stocks Yield Up to 13%

Growth stocks make most of the headlines, but they don’t always make investors the most money. Investing in a hot industry can be exciting, but who can say which firms will survive? Will these businesses even be profitable? The real money, as the top dividend stocks above show, comes from compounding small returns over long periods of time. You typically find those kinds of profits in businesses that don’t grow, don’t innovate, and don’t make headlines. But if you’re willing to trade being the talk of your next cocktail party for steady returns, cash cows might be some of the best investments around.

Yet despite their stodgy reputation, cash cows owners have become rich over the decades. In a 2015 paper, Credit Suisse Group AG (NYSE:CS) published the returns of each industry between 1900 and 2010. The best businesses tended to be slow, mature industries like food, chemicals, and electrical equipment. (Source: “Credit Suisse Global Investment Returns Yearbook 2015,” Credit Suisse Group AG, last accessed March 8, 2017.) Take my favorite cash cow, Iron Mount REIT (NYSE:IRM), for example. The firm has the excitement of milk toast. The company stores paper documents for businesses, charging a fee in exchange for warehouse space. J M Smucker Co (NYSE:SJM) looks like a textbook cash cow. The company makes jam, pet food, and other pantry items. In other words, timeless products that don’t need to be reinvented every few years. Smuckers will probably look the same decades from now. Enbridge Energy Partners, L.P. (NYSE:EEP) might be the best cash cow of all.

Source: Income Investors

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