I’m buying these 2 high income stocks to target long term wealth!

Father working from home and taking care of baby.

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While growth stocks can provide good scope for financial gain in my portfolio, I have found that income stocks can yield significant returns. So I searched the index to find a couple of companies to add to my portfolio. Let’s take a closer look.

Interest rates are rising.

Barclay (LSE:BARC) paid a total of 6p per share in 2021. At the current share price of 164p this equates to a dividend yield of 3.63%. Investing in this company can provide solid returns, although I am aware that dividend policies may change in the future.

The banking sector has been benefiting from rising interest rates in recent times. In the United Kingdom, rates have risen to 1.75% and may increase further.

This is generally good news for Barclays, as it means the business can charge more for loans and advances.

At its British operations, for the six months to June 30, net interest income increased by 6% to £2.7bn. In addition, the net interest margin (the difference between how much Barclays pays for the loan and how much it pays for the savings account) increased from 2.54% to 2.67%. High market volatility helped trading profit grow by 54%.

Of course there are risks from wage and inflation. These may start eating into balance sheets in the future.

On the contrary, Barclays has maintained its presence in the investment banking sector. As competitors pulled out of this service, it worked to expand this function and increase its market share.

8.12% yield!

second, Phoenix team (LSE:PHNX) paid a total of 48.9p per share in 2021, which equates to a dividend yield of 8.12%. This is one of the top products on the market today.

For the six months to June 30, the asset manager paid an interim dividend of 24.8p. This represents an annual increase of 3%.

It also announced that new business generations had reached £430m. This was up from £206m for the same period in 2021 and is an indication that the company is growing. An increase of £950m from £872m in 2021.

However, given the uncertain economic outlook, including the war in Ukraine and high inflation, the company is unsure how its assets and results will be affected in the near term.

Despite this, Phoenix Group has a strong cash position of £12.27bn. Total debt reached £3.9bn.

Given this strong balance sheet, I feel that the business can overcome any challenges that arise.

Overall, both of these companies can provide me with an attractive income stream. While there may be bumps in the road, I will soon add both firms to my portfolio and hold them for the long term.

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