Investing in dividend stocks is one method used to build a robust stock portfolio. It allows for added income for a particular security on top of its underlying stock performance, which makes it a very enticing option. Companies in various industries distribute dividends, but some industries supply investors with dividend stocks that offer a larger percentage. Such as real estate investment trusts (REITs), which are legally obligated to take 90% of their income that is taxed and distribute it back to investors in the form of dividends. Some other high dividend yield sectors include telecommunications, utilities and finance.
It is also vital for investors to keep a close eye on how a company is performing financially and if they are experiencing overall growth or a decline in financial stability. One downside to dividend investing is that companies may decrease their yield to investors during a difficult financial scenario to help allocate more capital to keep the business afloat. It is also best not to let a high dividend yield cause clouded judgment. Before investing in a dividend company, investors need to be sure it also carries growth potential and a stable future.
Here are some income-generating dividend stocks that have also seen impressive share price appreciation over this past year. These are companies that could be very beneficial for investors looking to increase their dividend portfolio.
Spok Holdings (SPOK)
Spok Holdings (NASDAQ:SPOK) is a telecom company that offers messaging services between patients and medical professionals through its subscription model. The dividend yield for Spok is at a favorable rate of 8.57% on an annual basis. Its first quarter dividend was thirty-one cents per share.
Spok Holdings has seen tremendous growth fueled by its recent earnings beats for the third and fourth quarters of 2023. On Feb. 21, Spok reported earnings for Q4 full-year results, which stated that total revenue increased by 2% compared to the prior year. And earnings per share was seventeen cents, beating estimates by eleven cents. The backlog for software services has seen a substantial increase of 28% when compared to the previously mentioned period.
The Telehealth movement has seen rapid expansion in recent years following the pandemic. Spok has been one of many companies to take advantage of this trend to allow seamless access between medical professionals and patients.
Spok shows no sign of stopping, with its share price surging by over 75% just in this last year, which should interest investors. And on top of that, it offers a fantastic dividend yield.
Park Hotels & Resorts (PK)
Park Hotels & Resorts (NYSE:PK) is a REIT that owns over 40 hotels and resorts throughout the U.S. The company offers a dividend yield of approximately 3.81% annually. But recently, they provided investors with a large special dividend of seventy-seven cents per share for the fourth quarter of 2023. The total dividend amount distributed to investors was ninety-three cents per share. Following the special dividend distribution announcement, Park Hotels’ stock surged by 20%.
Park Hotels financial results for the fourth quarter full-year 2023 were released on Jan. 22, in which it stated that total revenue remained practically unchanged and its funds from operations per share was fifty-three cents, an 18% increase year-over-year.
The large boost from its announcement of a substantial special dividend has helped to propel the company into 2024. Parks Hotels & Resorts is in a period of financial stability, and there is also potential for its dividend to increase further down the line.
MidCap Financial Investment (MFIC)
MidCap Financial Investment (NASDAQ:MFIC) is a business development company specializing in private equity. MFIC offers investors a dividend yield of approximately 10.78% annually. Its most recent dividend payment was thirty-eight cents per share for Q4 2023.
It has experienced a modest return of 11% over this last year from an increase in investment income and an impressive dividend yield. On Feb. 26, MidCap reported financial results for the fourth quarter of full-year 2023. It reported that net investment income was 46 cents per share compared to 43 cents per share the prior year. Additionally, new investments were committed to MFIC totaling $175 million for the fourth quarter.
There is nothing flashy about MidCap Financial; they aren’t going to be a revolutionary company. But, you will find stable growth and a strong dividend yield, which is more than enough to appease many investors. MidCap is a low-risk option for investors seeking decent income generation in 2024.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.