Much of the past decade for the stock market could be summed up in one punctuation mark: an exclamation point. But so far in 2022, the best choice would be a question mark. There is considerable uncertainty about the overall economy and how it will impact equities.
Because of this discomfort, it’s understandable why many investors would be reluctant to dive right in right now. However, there are options that shouldn’t cause too much distress. Here are three high-yield stocks to buy in September without any hesitation.
1. Property of the Eastern Government
Why are the rectangular pieces of paper in your wallet printed with former presidents and other important leaders worth anything? They are backed by the full faith and credit of the United States government. Property of the Eastern Government (GODDESS -0.45%) he can make the same claim for most of his leases.
Easterly is a real estate investment fund (REIT) which, as its name suggests, owns government property. All but one of the company’s 94 properties are leased to US government agencies. Easterly specifically focuses on critical federal agencies that are growing.
All REITs must return at least 90% of their taxable income to shareholders in the form of dividends. Easterly’s dividend yield is currently 5.76%.
Admittedly, the stock is down this year, mainly due to investor concerns about rising interest rates. However, Easterly believes some of his rivals are overexposed while his financial situation remains solid. This could well position the company to acquire attractive properties over the next couple of years.
2. Corporate Product Partners
Energy is one of the best performing sectors so far in 2022. Several factors are acting as a favorable wind, most notably the Russian invasion of Ukraine earlier this year. Mid-range energy company Corporate product partner (EPD 0.46%) was one of the winners, with his title climbing more than 20%.
Enterprise’s dividend yield exceeds 7%. The company has increased its distribution for 24 consecutive years. The distribution grew by a compound annual growth rate of close to 7% during that period.
Rising commodity prices don’t benefit businesses as much as many energy companies. The firm does not base its pipeline and processing fees on oil and gas prices. However, current market dynamics stimulate demand for crude oil, natural gas, natural gas liquids, and petrochemicals flowing through the company’s pipelines.
What about the prospects for the Enterprise beyond the next year or two? Co-CEO Jim Teague said on the company’s second quarter conference call, “Oil and gas will be in high demand for decades.” He is almost certainly right, which should bode well for the Enterprise’s long-term fortunes.
3. Trust in medical properties
Like Eastern government properties, Trust of medical properties (MPW -1.45%) (MPT) is a REIT. Even like Easterly, MPT has seen its shares decline a bit this year.
But while MPT’s leases aren’t supported by Uncle Sam, they’re still pretty safe. The company owns hospital properties in 10 countries. Even if one of MPT’s tenants had financial problems, his properties would likely be very attractive to other hospital operators due to their location.
MPT’s 7.7% dividend yield is the highest of these three stocks. The company also has the group’s lowest dividend payout ratio (57%), which indicates the ability to easily finance the dividend with earnings.
The potential for higher interest rates could weigh on MPT’s share price in the short term. However, the healthcare REIT should have excellent long-term growth opportunities. And with the shares trading at just 8.2 times the expected earnings, MPT appears to be a bargain right now.
Keith Speights has positions at Enterprise Products Partners. The Motley Fool recommends Eastern Government Properties and Corporate Product Partners. The Motley Fool has a disclosure policy.