In a game that requires patience, stocks that pay dividends provide instant gratification. The passive income earned can either be taken as cash or reinvested into the market, but it's always nice to be paid just for holding a position. Take a look at these three high-yield dividend stocks, which also have plenty of growth potential.
1. Alico: Squeeze the most out of your investment
One of the largest citrus growers in the U.S., Alico (NASDAQ: ALCO), owns roughly 84,000 acres of land across Florida. While 49,000 acres are devoted to growing fruit, the remainder of this land is undeveloped -- and makes for a significant asset to the company.
Alico has recently sold off portions of its land holdings at an average price per acre of $4,500. At this rate, the company's unfarmed land represents an asset valued at over $157 million. In that case, Alico's land alone accounts for approximately 60% of the company's market cap -- or roughly $263 million.
In addition to selling its land, Alico also monetizes this unused property as ranch land, leasing it out to locals for hunting, grazing, mining, and even oil extraction. This diversification helps Alico hedge against the risks of being a citrus grower, including freezes, growth inconsistency, drought, and fruit drop.
NASDAQ: ALCO
Key Data Points
The company's dividend payments have increased significantly over the past five years, from $0.06 in 2017 to $0.50 in June of this year. Helping to juice their investment to the fullest, Alico's current dividend yield for shareholders stands at an enticing 5.78%.
2. Big Lots: Lots of dividends for investors
A discount retailer found in 47 states, Big Lots (BIG +0.00%) is focused on expanding its presence even further. The company has a long-term goal of opening over 500 new stores, as many as 50 this year alone. Once complete, these 500+ stores could add as much as $2 billion in revenue to Big Lots' top line, according to CEO Bruce Thorn.
The company faces near-term hurdles, including supply chain disruptions and inflation, and sales dropped 15.4% in the second quarter. Offering consumable goods and home furnishings at closeout prices, even Big Lots' anti-recessionary sales model has been impacted by the COVID-19 pandemic and its fallout. Although sales were down in the second quarter, the company still managed to beat analysts' revenue estimates.
NYSE: BIG
Key Data Points
Despite recent challenges, Big Lots' dividends have been paid out like clockwork to shareholders. Since March of 2018, the company has regularly dished out payments of $0.30 per share, which marks a current yield of 5.45%.
3. B&G Foods: Consumer staples Dividend King
Last but not least, B&G Foods (BGS 4.86%) is a sleeper in the consumer staples category. The company's growing umbrella of "high-margin" brands includes Crisco, Ortega, and Green Giant, providing a strong foundation of recession-proof consumables.
B&G Foods contends with the same challenges as other food sellers, including inflation and supply chain inconsistencies, and the company has struggled in the wake of the pandemic. In its second-quarter earnings release, it announced earnings per share of $0.07 -- roughly one-quarter of analysts' expectations.
To combat inflation and higher operating costs, B&G has locked in short-term pricing with its commodities vendors and has also implemented a series of price increases.
NYSE: BGS
Key Data Points
B&G Foods also boasts a long history of paying solid dividends to its shareholders. This past June, the company distributed a dividend payment of $0.475, a yield of 8.36%. While a high yield percentage is alluring to investors, B&G will have to justify its dividends by increasing sales while minimizing operating costs.
The good news is revenue was up 3.1% in Q2, the company still expects at least $2.1 billion in sales for the year, and input costs have begun to stabilize.
