Christmas is a season of joy, celebration, and generosity—a time to gather with loved ones, reflect on blessings and embrace the spirit of giving. As we deck the halls and enjoy festive cheer, it’s also a perfect moment to plan for a brighter financial future.
Imagine a gift that keeps the season's joy alive all year long. A gift that keeps providing steady, reliable dividend income that brings a little extra comfort and prosperity to your life well beyond the holidays. This is our key focus at High Dividend Opportunities, and today, we will discuss two picks with up to 9% yields to jump-start your income stream.
Pick 1: HR – Yield 7.1%
Healthcare Realty (HR) operates 660 properties (38.7M sq ft), with 93% being medical office buildings (MOBs). It has strong ties with 56 of the top 100 U.S. health systems, with most properties located on or near campuses.
In mid-2022, HR merged with Healthcare Trust of America (HTA), creating the largest pure-play MOB REIT. Since then, HR’s portfolio has streamlined from 728 to 660 properties, exiting four markets. Despite the reduction, normalized Funds From Operations (FFO) have remained stable at ~$0.39/share, with Q3 2024 FFO matching this figure and full-year guidance of $1.55-$1.56/share. This reflects improved occupancy, higher rents, and better expense management. HR’s dividend of $0.31/share (79.5% payout ratio) is now adequately covered by FFO.
HR has executed over $800M in joint venture and asset sales this year, including an $800M contribution to JVs with Nuveen and KKR. This strategy allows HR to retain partial ownership, management fees, and future cash flows. Proceeds have been used to reduce debt and repurchase $447M in shares YTD, with net debt to adjusted EBITDA at 6.7x and $1.3B liquidity available.
Operationally, HR signed 431,000 sq ft of leases in Q3, maintaining a strong leasing pipeline. Occupancy improved to 86.5%, with expectations to reach 86.3%-86.8% in FY 2024. Tenant retention rose to 83.8% YTD (up from 79.3% in FY 2023), while Q3 Net Operating Income grew by 3.5%, supported by a 3.9% cash leasing spread.
Insider buying activity signals confidence in HR’s turnaround and its MOB-focused model. A stable 6.9% dividend yield and expectations for further occupancy and NOI growth in 2025, alongside potential macroeconomic tailwinds from interest rate cuts, make HR an attractive, undervalued investment.
Pick 2: WES – Yield 9.2%
Western Midstream Partners LP (WES) is a critical player in U.S. energy infrastructure. Operating 14,373 miles of pipelines and 21 processing facilities, WES supports key energy production in the Delaware and DJ Basins, with 89.3% of its FY 2024 revenue fee-based, ensuring predictable cash flows.
Note: WES issues Schedule K-1 for tax purposes.
WES has prioritized shareholder returns through self-funded growth, debt reduction, unit repurchases, and distribution increases. For FY 2024, WES projects $1.15 billion in free cash flow (up 19% YoY) and $2.3 billion in adjusted EBITDA (up 11% YoY). With a leverage ratio of 2.96x and $1.1 billion in cash, WES is well-positioned to manage $1 billion in 2025 maturities.
The partnership also owns equity stakes in infrastructure operated by leaders like Energy Transfer (ET) and Enterprise Products Partners (EPD), adding $110 million in distributions in FY 2024. These investments diversify WES’s income and strengthen its business.
WES’s consistent performance, discounted valuation, and tax-advantaged structure make it an attractive option for income-focused investors. Its strong financial position and strategic role in the energy value chain support its 8.7% yield and the potential for enhanced distributions in 2025.
Conclusion
This Christmas, as you celebrate the season of giving and gratitude, consider adding the gift of steady dividends to your portfolio. With the right investments, you can keep the spirit of joy and abundance alive throughout the year, making every day feel a little more merry.
Collecting reliably recurring dividends forms the cornerstone of our investment strategy at High Dividend Opportunities; we enjoy growing dividends across market conditions due to our heavily diversified portfolio with over 45 individual holdings.
Happy Holidays! May your season be filled with joy, gratitude, and prosperity. Here's to a financially rewarding and festive season ahead!
We're offering a limited-time 30% discount on our annual price of $599.99 and a 14-day free trial via this link only:
Are you ready to become an income investor?
We can't say it better than our members:
Stop wondering if you will have the income you need in retirement; start growing your income stream now. We are the largest community of income investors and retirees, with over 8,000 members. Our "Model Portfolio" targets a +8% yield, with the highest and safest dividend stocks, preferred stocks, and bonds. This service is ranked #1 in dividends, income, and retirement. If you are looking for high, sustainable income, you have come to the right place!