I tend to invest in stocks with LESS than 6% yield: that seems to be the level where a higher yield is offered because the company's performance is too weak to hold the price up by itself.
On the high end I like:
HCP, the largest medical property REIT, has increased dividends for 29 straight years and is paying the highest yield of the S&P Dividend Aristocrats at 5.7%. When REITs crashed harder than the market avg. in 2008-9, HCP wasn't hit hard and bounced back to an all-time high in a couple years.
The current dividend is only 72% of FFO (REIT equivalent of cash flow) which means the dividend is very stable and it will almost certainly continue to grow.
On low end, I like a combination "growth and income" stock like:
Emerson Electric has increased dividends for 57 consecutive years and pays a 2.7% dividend. That's not a phenomenal yield, but EMR has increased earnings an avg. 11% per year the last 5 years and is projected to increase them 9% per year for the next 5 years - and it's a stable, steady-growth company where the projections are likely to be on target. At a trailing P/E of 22.9 it should provide a market avg. or better return over the next 5 years.
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3 stocks will be in the spotlight Thursday as investors try to make sense of the numbers from the sector.
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