Dividends4Life: Forget This 8.8%-Yielding Dividend Stock. Consider These Even Higher-Yielding Payouts Instead

Forget This 8.8%-Yielding Dividend Stock. Consider These Even Higher-Yielding Payouts Instead

Posted by D4L | Thursday, January 25, 2024 | | 0 comments »

Redwood Trust (RWT) pays a pretty enticing dividend. The mortgage-focused real estate investment trust (REIT) currently yields 8.8%. That's several times above the S&P 500's 1.5% dividend yield. These higher-yielding dividend stocks look like safer bets than Redwood Trust...

However, as alluring as the mortgage REIT's yield might seem, investors should forget about that big-time payout. That's because they can earn even higher yields from Energy Transfer (ET 0.18%) and MPLX (MPLX 0.41%). The energy master limited partnerships (MLPs) currently yield over 9%. Further, those MLPs are more likely to increase their already high-yielding distributions in the future, which isn't something investors can count on Redwood doing.

Source: Motley Fool

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