4 Ultra-High-Yield Dividend Stocks to Buy Hand Over Fist Right Now

Not many know what a powerful wealth compounding machine dividend stocks are. The S&P 500 index has generated roughly 1,200% gains in the past three decades. With reinvested dividends, those gains more than doubled to over 2,400%, proving time and again why dividend stocks are so worthy of your money.

Sadly, many investors end up getting trapped in unsafe high yields. While you must never chase yields blindly, there’s nothing like it if you can invest in dividend stocks that support their high yields with stable and growing dividends. The four ultra-high-yield dividend stocks below — with yields from 5% to 8% — fit the bill and have solid wealth-building potential.

Get a dividend raise every quarter

If you believe the worst is over for the economy and businesses are primed to bounce back, time is ripe to buy W.P. Carey (NYSE:WPC) shares.

That’s not to say W.P. Carey will stumble when the going gets tough — that’s unlikely. Even in the exceptionally challenging pandemic year of 2020 when most business properties were shut, the company managed to collect most of its rent. W.P. Carey is a real estate investment trust (REIT) that buys properties and leases them out to companies across industrial, warehouse, office, retail, and self-storage spaces under long-term agreements with built-in annual rent escalators.

As of the end of June 30, 2021, except U-Haul and Marriott International, which each had lease terms of around 2.4 to 2.8 years, all of W.P. Carey’s other eight largest tenants had lease terms longer than seven years, going up to 22.

Image source: Getty Images.

With the economy reopening, W.P. Carey is back to pursuing growth opportunities. It invested nearly $1 billion in the first half of 2021 and raised its full-year adjusted funds from operation (FFO) guidance range to $4.94-$5.02 per share versus $4.74 per share it earned in 2020. Its tenants are growing, too. Its largest tenant, U-Haul, for example, just announced a new three-story moving equipment and self-storage unit center in Carlsbad to meet rising demand.

With management targeting another $500 million to $1 billion investment this year, W.P. Carey’s FFO should continue to rise. As FFO grows, so should dividends. W.P. Carey has increased dividends every year since going public in 1998 and raises dividends every quarter, so you get a nice income bump every three months. With the stock losing some ground in recent weeks and yielding 5.5%, W.P. Carey is a great addition to an income investor’s portfolio.

An underrated stock with solid potential

My next pick is a REIT as well, but in the high-potential healthcare sector. The COVID-19 pandemic has brought healthcare to the forefront, making it an opportune time for companies that own healthcare facilities to grow.

Medical Properties Trust (NYSE:MPW), for example, announced investments worth $2 billion just between its first and second quarters, taking its total investments so far this year…