7 Safe High-Yield Dividend Stocks to Buy

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 a variety of factors, including earnings performance, analyst sentiment, buying momentum and returns back to shareholders. The stocks get a grade from “A” to “F” 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.

ZIM ZIM Integrated Shipping Services $18.57
KEN Kenon Holdings $33.97
SBLK Star Bulk Carriers $19.51
BPT BP Prudhoe Bay Royalty Trust $11.65
MSB Mesabi Trust $18.14
DSX Diana Shipping $3.54
UAN CVR Partners $108.01

ZIM Integrated Shipping Services (ZIM)

ZIM Integrated Shipping Services (NYSE:ZIM) has fallen on hard times. Investors were extremely bullish on the shipping container company earlier this year, but as shipping rates moved lower, so did ZIM stock. For the year, ZIM is down nearly 70%.

But there’s some good news, too. After a nasty miss on both top and bottom lines in the second quarter, ZIM bounced back for Q3 to post revenue of $3.23 billion and earnings per share of $9.66, both with topped estimates of $3.21 million and EPS of $9.47.

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, which with yield of 155% is one of the few dividends that pay more than the stock is actually worth.

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

Kenon Holdings (KEN)

Kenon Holdings (NYSE:KEN) is a diversified energy company whose operations are strictly in power generation plants. But it also holds a 21% stake in ZIM and a 12% stake in Qoros Automotive, an electric vehicle company based in China.

Profits are on the rise – the company made a profit of $33 million in the third quarter, compared to a net loss of $33 million in Q3 2021.

And a huge amount of profit comes from its holdings in ZIM stock. The company says it expects to make $73 million in December when ZIM pays out its announced dividend of $2.95 per share.

True, Kenon stock is currently down about 35% for the year. But it’s a solid dividend stock in its own right, paying out a dividend of $10.25 per share in June and $3.50 per share in January.

Currently, KEN stock has a “B” rating in the Dividend Grader.

Star Bulk Carriers (SBLK)

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, although it showed some unexpected weakness in the third quarter. The most recent report had revenue of $2.71 million and EPS of $1.33 narrowly missing expectations of $274.98 million and EPS of $1.38.

But what’s really interesting is the dividend – Star Bulk currently pays a dividend of $6.50 per year – its last four quarterly dividends have been for $1.20, $1.65, $1.65 and $2. Considering the stock price is less than $20, SBLK stock is currently offering a dividend yield of more than 30%.

With that kind of return, you really don’t mind that the stock is down more than 16% on the year. SBLK stock has a resounding “A” rating in the Dividend Grader.

BP Prudhoe Bay Royalty Trust (BPT)

Based in New York, BP Prudhoe Bay Royalty Trust (NYSE:BPT) is recognized as the largest conventional oil and gas trust in the U.S. Its assets include the Prudhoe Bay oil field, which is the largest oil field in North America.

Then trust was created more than 20 years ago by Standard Oil Company and BP Exploration, both of which are now part of the conglomerate BP (NYSE:BP). As a royalty trust, BPT provides tax-advantaged yields because the IRS doesn’t consider the distributions a taxable event – similar to the disbursements from real estate investment trusts.

All that said, BPT provides an excellent payout right now of 29.4% – including a dividend of 70.5 cents per share in October, of $1.405 per share in July and $1.088 per share in April. That’s pretty great for a stock that is priced at less than $13 per share.

BPT has a “B” rating in the Dividend Grader.

Mesabi Trust (MSB)

Another royalty trust, Mesabi Trust (NYSE:MSB) operates in the iron ore mining sector. Its primary interest is in the Peter Mitchell Mine, located in Minnesota. The mine itself is operated by Northshore Mining Company, which is a subsidiary of Cleveland-Cliffs (NYSE:CLF).

The relationship is worth watching right now. Cleveland-Cliffs idled Northshore on May 1 as part of a royalty dispute with Mesabi. That prompted Mesabi to make the unusual decision (at least for a royalty trust) in October to declare no distribution for the quarter.

Mesabi filed for arbitration against Northshore and Cleveland-Cliffs in October – and if the trust is successful in its claim, shareholders could be entitled to damages dating back to 2020.

But nothing is certain, particularly when lawyers get involved. Currently MSB has an “A” rating in the Dividend Grader largely on the potential that royalty trusts provide income investors.

Diana Shipping (DSX)

Diana Shipping (NYSE:DSX) is another of those dry bulk vessel companies, providing shipping services around the world. It maintains a fleet of 41 dry bulk vessels and expects to take delivery of two more by the end of the year.

Similar to Star Bulk Carriers, Diana Shipping has been exceeding analysts’ expectations on a consistent basis – until the third quarter. Like SBLK, Diana narrowly missed on top and bottom lines, reporting revenue of $70.38 million and EPS of 34 cents.

DSX stock is down more than 16% so far this year, but the company still pays a dividend of 70 cents per share for the year. Considering the stock price is about $3.50 right now, that puts the dividend yield at a strong 20%.

That helps give this shipping container stock an “A” rating in the Dividend Grader.

CVR Partners (UAN)

A jump in fertilizer prices this year – one of the many affects of the war between Russia and Ukraine – has given CVR Partners (NYSE:UAN) a boost this year. The company produces nitrogen fertilizer products and is currently showing a gain of 27% on the year.

CVR is a master limited partnership. That means the company can combine the tax benefits of a private partnership with the liquidity of publicly traded companies. The arrangement tends to give MLPs a greater yield than bonds or stocks.

To wit, UAN currently provides a dividend yield better than 17, bolstered by a mammoth payout of more than $10 per share in August. While you won’t get that kind of payout every quarter, CVR Partners can be a reliable income producer for long-term investors. It gets a “B” rating in the Dividend Grader.

On the date of publication, Louis Navellier had a long position in ZIM, KEN and DSX. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.

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