• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Bank of America (BAC)

Bank of America building in New York Times
Sean Pavone / Shutterstock

Let’s start with a bank stock. Why? While many sectors fear rising interest rates, banks look forward to them.

Central banks hike interest rates to tame inflation.

Banks lend money at higher rates than they borrow, pocketing the difference. When interest rates increase, the spread for how much a bank earns widens.

And it just so happens that quite a few banks, such as Bank of America, have upped their payouts to shareholders recently.

In July, Bank of America boosted its quarterly dividend 17% to 21 cents per share. That gives the company an annual yield of 1.7% at the current share price.

According to the latest earnings report, the bank earned a profit of $7.7 billion in Q3, up 58% from a year ago.

Even after a recent slide, Bank of America shares have climbed 45% over the past year. Its peers, such as Goldman Sachs, JPMorgan Chase and Morgan Stanley — all of which raised their dividend in 2021 — have also enjoyed substantial rallies during this period.

Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

Get Started

Southern Co. (SO)

The logo for Southern Company gas and electric on an Atlanta building
JHVEPhoto / Shutterstock

Moving up the yield ladder is Southern, a gas and electric utility holding company headquartered in Atlanta. It serves close to 9 million customers.

The utility sector is known for being a defensive play — and not just against inflation. Come what may, people still need to heat their homes in the winter and turn the lights on at night.

The recession-proof nature of the business means Southern can pay reliable dividends.

In April, the company boosted its quarterly payout by 2 cents per share to 66 cents per share, marking the 20th consecutive year that Southern has increased its dividend.

Look further back, and you’ll see that the company has paid steady or increasing dividends since 1948.

In the first nine months of 2021, Southern earned an adjusted profit of $3.05 per share, up 9.7% year over year. Management expects full-year adjusted earnings per share to be above the top end of their previous guidance range of $3.25 to $3.35.

Trading at $68 apiece, Southern stock offers a solid annual yield of 3.9%.

Global Partners (GLP)

If you really want oversized yields, you may have to look at the lesser-known stocks — like Global Partners.

Structured as a master limited partnership, Global Partners is one of the largest independent owners, suppliers and operators of gas stations and convenience stores in the Northeast.

At the same time, it is a leading wholesale distributor of fuel products and is involved in transporting petroleum products and renewable fuels by rail from the mid-continental U.S. and Canada.

The business pays quarterly distributions of 57.5 cents per unit, which comes out to a staggering annual yield of 8.7%.

In the trailing 12 months as of Sept. 30, Global Partners’ distributable cash flow covered its payout 1.1 times after factoring in distributions to its preferred unitholders.

This 2 Minute Move Could Knock $500/Year off Your Car Insurance in 2024

Saving money on car insurance with BestMoney is a simple way to reduce your expenses. You’ll often get the same, or even better, insurance for less than what you’re paying right now.

There’s no reason not to at least try this free service. Check out BestMoney today, and take a turn in the right direction.

Get Started

Trending on Moneywise

Sponsored

Follow These Steps if you Want to Retire Early

Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.

Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

What to Read Next

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.