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Seeking Income? 3 High-Yield Stocks to Buy

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Everybody loves dividends, as they provide a passive income stream and more than one way to reap a return from an investment. In addition, dividend-paying stocks are generally less volatile by nature, another positive benefit.

And for those seeking payouts, three high-yield stocks – USA Compression Partners (USAC - Free Report) , Black Stone Minerals (BSM - Free Report) , and Kimbell Royalty (KRP - Free Report) – could all be considerations. Let’s take a closer look at each.

USA Compression Partners

USA Compression Partners is one of the largest independent natural gas compression services providers across the U.S. in terms of fleet horsepower. The stock is a Zacks Rank #1 (Buy), with earnings expectations increasing across nearly all timeframes.

Zacks Investment Research
Image Source: Zacks Investment Research

USAC shares currently yield a sizable 9.7% annually, nicely above the respective Zacks industry average of 2.9%.

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s growth profile is impossible to ignore, with earnings forecasted to see 260% growth on 18% higher revenues. And peeking ahead to FY24, expectations allude to a further 83% jump in earnings paired with a 6% sales bump.

Black Stone Minerals

Black Stone Minerals is an owner of oil and natural gas minerals primarily in the United States. The company’s earnings outlook has improved across the board, pushing it into the highly-coveted Zacks Rank #1 (Strong Buy).

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Image Source: Zacks Investment Research

BSM shares yield a rock-solid 10.8% annually, well above the respective Zacks industry average. The company has been committed to increasing its payout, carrying a 5.3% five-year annualized dividend growth rate.

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Image Source: Zacks Investment Research

It’s worth noting that the company is forecasted to witness a growth slowdown in its current year, with the $1.86 Zacks Consensus EPS Estimate suggesting a 16% pullback in earnings year-over-year.  

Kimbell Royalty

Kimbell Royalty, a current Zacks Rank #1 (Strong Buy), owns and acquires mineral and royalty interests in oil and natural gas properties. The company has seen positive revisions hit the tape across the board, with the revisions trend particularly notable for its upcoming release expected in early November.

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Image Source: Zacks Investment Research

KRP shares yield 10% annually paired with a payout ratio sitting at 84% of the company’s earnings. Impressively, the company has boosted its payout ten times over the last five years, translating to a 3.5% five-year annualized dividend growth rate.

Zacks Investment Research
Image Source: Zacks Investment Research

The company has been a standout earnings performer, exceeding the Zacks Consensus EPS Estimate by an average of more than 95% across its last four releases. Just in its latest print, the company penciled in a 91% EPS beat and reported revenue 13% ahead of expectations.

Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Dividend-paying stocks can allow investors to build a cash pile quickly. After all, isn’t payday the best?

And for those seeking high yields, all three stocks above – USA Compression Partners (USAC - Free Report) , Black Stone Minerals (BSM - Free Report) , and Kimbell Royalty (KRP - Free Report) – precisely fit the criteria currently.

On top of sizable payouts, all three sport a favorable Zacks Rank, indicating bullishness among analysts.


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USA Compression Partners, LP (USAC) - free report >>

Black Stone Minerals, L.P. (BSM) - free report >>

Kimbell Royalty (KRP) - free report >>

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