7 Safe High-Yield Dividend Stocks to Buy thumbnail

7 Safe High-Yield Dividend Stocks to Buy

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In this market, it’s understandable if you’re a little jumpy. Inflation is up, returns are down, and retirement accounts are taking it on the chin. There’s probably nothing that would make you feel better more than some safe, high-yield dividend stocks to buy.

While there’s no sure thing when it comes to investing, you can tip the odds greatly in your favor by investing in equities that are safe high-yield dividend stocks. Dividend stocks are some of the safest investments you can make.

I love dividend stocks because they pay you to hold them, and you can take the monthly or quarterly income and reinvest it in the market to turbocharge your portfolio growth. And my Dividend Grader tool makes it easy – it is a free tool that evaluates stocks on an “A” to “F” scale to give you a quick way to rank the top names for your portfolio.

The stock market is surely challenging right now. So consider these safe high-yield dividend stocks.

ABR Arbor Realty Trust $15.00
BBDC Barings BDC $9.16
SBLK Star Bulk Carriers $21.00
ZIM ZIM Integrated Shipping Svcs. $27.08
GNK Genco Shipping & Trading $16.12
EGLE Eagle Bulk Shipping $55.49
AFCG AFC Gamma $15.83

Arbor Realty Trust (ABR)

the Arbor Realty Trust (ABR) logo on a web browser, magnified by a magnifying glass

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Arbor Realty Trust (NYSE:ABR) handles everything from Fannie Mae and Freddie Mac loan programs, FHA and low-income loans, bridge loans and more.

Earnings for the third quarter included revenue of $99.33 million, which was better than analysts’ expectations of $87.25 million. Earnings per share came in at 56 cents, better than the 44 cents that the Street was expecting.

And to top it off, ABR stock offers a whopping dividend yield of 11.3%, which helps take the sting off the stock’s year-to-date loss of more than 18%.

ABR stock has an A rating in the Dividend Grader.

Barings BDC (BBDC)

A photo of a young boy wearing sunglasses, jeans, a blazer, a white shirt and suspenders holding money in various denominations in one hand and sitting in a plush chair.

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Barings BDC (NYSE:BBDC) is a business development company. It makes debt investments in middle market companies, financing market buyouts, mergers, acquisitions and recapitalizations. The company has more than $2.6 billion in assets and operates as a subsidiary of MassMutual.

True, the market hasn’t been kind to BBDC stock so far this year, as it’s down by 17%. But the best part about being a high-yield dividend stock is that those returns help take the sting out of stock underperformance. Barings currently offers a yield of 10.8%.

In the third quarter, Barings saw investment income of $56.3 million and net investment income of $27.9 million, or 26 cents per share. It projected Q4 investment income of at least 27 cents per share with additional expansion in 2023.

“While uncertain and volatile economic conditions are pressuring global asset prices, we continue to see strong performance across our diversified investment portfolio,” CEO Jon Bock said in a statement.

Barings also declared a dividend of 24 cents per share. It has an “A” rating in the Dividend Grader.

Star Bulk Carriers (SBLK)

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Star Bulk Carriers (NASDAQ:SBLK) has a fleet of 128 vessels that transports dry bulk goods around the world.

Not surprisingly in light of supply chain concerns, Star Bulk has been on a roll when according to its quarterly earnings report. Second quarter revenue was $350.95 million, better than expectations of $323.86 million. Earnings per share of $2 was 13 cents better than the Street expected.

But what’s really interesting is the dividend – Star Bulk currently pays a dividend of $6.55 per year – its last three quarterly dividends have been for $1.25, $2, $1.65 and $1.65. Considering the stock price is less than $20, SBLK stock is currently offering a dividend yield of more than 30%. That’s extraordinary.

With that kind of return, you really don’t mind that the stock is down 12% on the year. SBLK stock has a resounding “A” rating in the Dividend Grader.

ZIM Integrated Shipping Services (ZIM)

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Another shipping container firm, ZIM Integrated Shipping Services (NYSE:ZIM) has fallen on hard times. Investors were extremely bullish on the stock earlier this year, but as shipping rates moved lower, so did ZIM stock. For the year, ZIM is down 57%. Since February, it’s down 70%.

And it didn’t help when second-quarter earnings were a miss on the top and bottom lines. Revenue of $3.43 billion and EPS of $11.07 was less than estimates of $3.63 billion and EPS of $12.84.

Surely, there are fears that a recession could be hard on ZIM, but I think those fears are overblown. The company’s shipping rates are still several times that of the quarterly average rates it reported just before the pandemic.

At this point, I think recession fears are already priced into ZIM stock and the only direction it has to go is up. And until that happens, you can always take solace in its mammoth dividend.

ZIM stock has an “A” rating in the Dividend Grader.

Genco Shipping & Trading (GNK)

Genco Shipping cargo ship in Russia. GNK stock.

Source: Pres Panayotov / Shutterstock

Genco Shipping & Trading (NYSE:GNK) boasts a fleet of 44 Capesize, Ultramax and Supramax ships that it rents out for more than $27,000 per day. That provides some solid cash flow for shareholders. The company specializes in shipping grain, coal, iron ore and other dry bulk commodities.

Earnings for the third quarter included revenue of $96.5 million, beating expectations of $9.2 million. EPS of $1 was better than the 88 cents per share that analysts expected.

Genco stock is down by nearly 27% over the last six months, but the company recently got a “buy” rating and a $20 price target from analysts at Stifel, who are predicting stronger seasonal demand and an improved post-pandemic recovery in China.

Genco stock pays a generous dividend yield of 13.5%, which helps give it an “A” rating in the Dividend Grader.

Eagle Bulk Shipping (EGLE)

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The trends that are helping to boost the prospects of other shipping companies are also in play for Eagle Bulk Shipping (NASDAQ:EGLE). The company has a fleet of 53 ships, most of them being the versatile Supramax/Ultramax vessels.

Eagle Bulk Shipping saw revenue in the most recent quarter – Q2 – of $3.43 billion, which was an increase of nearly 44% from a year ago. Net revenue of $198.7 million was a big jump from the $129.85 million the company recorded a year prior.

Net income for the quarter was $94.95 million, versus $9.23 million a year ago.

EGLE stock is up about 5% on the year, but it also boasts a dividend yield of 15.4%. That helps give it a “B” rating in the Dividend Grader.

 AFC Gamma (AFCG)

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AFC Gamma (NASDAQ:AFCG) is a play on cannabis, but not in the way you may think. The company provides institutional loans to cannabis companies, including the capital needed for cultivation, processing and distribution.

There were hopes that Washington would push the legalization of recreational marijuana on a federal level but that hasn’t happened. Instead, states are slowly taking action, with Maryland and Missouri being the latest to approve laws.

The company is a small-cap, with a market capitalization of only $320 million. But it can still provide a good return. Revenue in the third quarter was $17.6 million, which was a 77% increase from a year ago.

AFCG stock has a dividend ratio of 13.6%, which helps push it to a “B” rating in the Dividend Grader.