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My investment portfolio consists of high growth companies and dividend stocks. The latter are those that make regular cash payments to shareholders.
Cash from dividends can be reinvested or used to generate income. I find them to be a great way to build my long-term wealth.
Currently investing as an index FTSE 100 Or S&P 500 It offers a dividend yield of just under 4% and 1.6% respectively.
On the other hand, there are several stocks that offer incredibly high dividends that I would consider investing in to generate regular passive income.
Let’s look at two stocks with over 10% yields.
Norwegian Hydro
Norwegian Hydro (FRA:NOH1) is a Norwegian aluminum and renewable energy company. It currently offers an 11% dividend.
Despite its historically low yield of around 4%, Norsk Hydro recently announced an additional dividend and share buyback, which is good news for investors.
The company operates several hydroelectric power plants in Norway and currently has a strong competitive advantage, as Europe can produce its own cheap energy sources while skyrocketing gas prices.
However, the company is not affected by the increase in energy prices, and considering how much energy it takes to produce aluminum, it has already warned of production cuts. If Europe goes into recession, demand for aluminum may drop in the short term, as industries such as construction are forced to slow down.
As Europe continues on its decarbonisation path, I think the company has a better long-term advantage than competitors thanks to its continued investment in renewable energy.
Form
Form (FRA: FOT) is a state-owned energy company and Europe’s third largest producer of carbon-free electricity. In the year In 2020, Fortum was Finland’s largest company by revenue.
Shareholders currently offer a dividend yield of 10.3%, one of the highest in the industry.
The stock is down almost 60% year to date and over the last 12 months and I think the current share price of €11 is a good point to get into such a promising company.
One of the most immediate problems facing Fortum is the acquisition of Uniper, a German energy division that has been underperforming for several years. If the German government reduces Fortum’s stake in Uniper, there could be a significant drop in the share price.
However, I believe many of Fortum’s problems are short-lived. A recent €2.4 billion loan from the Finnish government, as well as news that the company is looking for a new buyer after leaving Russia, makes me confident that the company will weather the current storm and come out strong in the long run.