Income investors have been largely spared from the recent market dip, but not every dividend-paying stock is trading near its highs. There are dozens of investments yielding 2% or more that have fallen at least 20% below their recent high-water marks. Most of them aren't worth your time. Let's check out three that you will want to check out.
Qualcomm (QCOM 0.56%), ViacomCBS (PARA 1.41%), and Innovative Industrial Properties (IIPR 4.44%) may be on the low end in terms of yields, but they are riding hot trends that should translate into larger payouts over time.
Qualcomm barely makes the cut of our screener, yielding 2.1% and trading 22% below January's all-time high. The patent-rich supplier of integrated circuits and software found in mobile devices, wireless networks, and other gadgetry is making the most of the smartphone revolution.
Its latest quarter was a blowout. Revenue rose 52% in its fiscal second quarter, and adjusted earnings more than doubled. It's the third time in a row that year-over-year top-line growth has exceeded 50%, and guidance for the current quarter calls for Qualcomm stretching that streak to four quarters.
Qualcomm offers many of the things growth investors crave. It's a play on the 5G rollout as well as the Internet of Things revolution. It's also consistently trounced Wall Street profit targets with ease over the past year. In a tech world of sky-high valuations Qualcomm fetches just 17 times this fiscal year's earnings and 15 times next year's estimate.
The past few months have been a wild ride for Viacom shareholders. The media giant traded as low as $10.10 in March of last year when the pandemic crushed stocks, only to briefly trade in the triple digits two months ago before becoming collateral damage in the mother of all margin calls.
The stock has plummeted 61% from its March high. Viacom's surge north of $100 wasn't exactly earned. Viacom was just riding high along with most entertainment juggernauts that were rolling out streaming services. However, now it's safe to say that the downticks over the past two months haven't been warranted. Viacom is now below $40, trading for less than 10 times trailing earnings. With media companies pairing up it wouldn't be a surprise if someone steps up to pick up Viacom on the cheap. In the meantime patient investors are collecting a healthy 2.4% dividend yield.
Innovative Industrial Properties
Real estate investment trusts (REITs) have been beneficiaries of the rotation out of tech in 2021, but one of the more interesting plays in that field is actually trading at a markdown. Innovative Industrial Properties is the first exchange-traded REIT specializing in the regulated U.S. cannabis industry.
Innovative Industrial Properties is growing a lot faster than your greenhouse garden variety REIT. Revenue has more than doubled over the past four years, and it's starting 2021 on the same path. Revenue soared 103% in the first quarter it reported two weeks ago. It's not just revenue growing fast. The quarterly dividend of $1.32 a share it declared last month is 32% ahead of what it was shelling out a year ago.
Innovative Industrial Properties has a growing portfolio of properties it makes available to state-licensed operators for their regulated medical-use cannabis facilities. There are regulatory risks here, but the 3.1% yield is the highest of the three names on this list. The REIT has declined 24% since peaking three months ago. It's a stock that should be hitting new highs in the near future -- in more ways than one.