Dividend stocks come in all shapes and sizes. But while stability and a big brand are important, many investors are more interested in looking beyond the typical mega-cap stock to generate big-time income from their shares. After all, the current yield of the S&P 500 is a paltry 1.9%. And some big stocks known for their deep pockets yield even less than that, with Apple (ticker: AAPL) paying out about 1.5% at current prices. Thankfully, there are plenty of quality dividend stocks that pay significantly higher than the typical blue chips you hear about. Here are 10 that have been quietly performing well in 2019 even as they pay out generous dividends of between 5% and 11%.
Spark Energy (SPKE)
Spark Energy is not your typical utility stock, embracing the spirit of competition in deregulated electricity and natural gas markets to build its operations across 94 regions that span 19 states and the District of Columbia. Simply put, Spark has found more than 900,000 customers who did the math and found they could get a better deal than sticking with a local utility. The margins admittedly aren't grand, since Spark is kind of a middle man that uses other companies to generate and distribute the electrons. But the company has consistently payed dividends since hitting public markets in 2014 and currently pays a yield that is better than peers in the sector.
Current yield: 6.6%
Carlyle Group (CG)
A name serious investors will recognize, the Carlyle Group is an investment firm and private equity powerhouse that has made high-profile deals over the years. In 2012, CG completed an IPO to help raise cash for its massive investment fund. More recently, CG made major deals including the acquisition of data firm Veritas and purchase of former DuPont chemicals business Axalta. As the cash comes in from those investments, shareholders get a piece of the action through quarterly dividends. Those payouts can fluctuate, but based on the last 12 months and the strong performance of CG lately, the yield is more than three times that of the typical S&P stock.
Current yield: 6.8%
NGL Energy Partners (NGL)
NGL Energy Partners is an energy distribution company that mainly purchases crude oil from exploration firms and then transports or stores it. The company also operates a wastewater segment specifically to service hydraulic fracturing or "fracking" companies, which use pressurized liquid to crack rock formations and extract fossil fuels from within. As a middle man, NGL isn't as volatile as smaller exploration companies that have to find new wells and finance production up front. It also isn't as exposed to commodity prices as end users. There isn't as much growth potential in this business, but there is reliability to fuel consistent dividend payments.
Current yield: 11.3%
TerraForm Power (TERP)
TerraForm Power is a green energy generation company that operates solar and wind power infrastructure across the U.S., Canada, Europe and South America. Its current capacity is north of 3,700 megawatts -- enough to power nearly 3 million homes. As an independent power producer with a market value of less than $3.5 billion, TERP isn't quite as well-financed as some of the larger players in the space. However, the future looks bright with a 2019 revenue growth rate of more than 30% to help fuel bigger profits and even bigger dividends down the road above its already impressive yield.
Current yield: 5%
Independence Realty Trust (IRT)
Independence is a real estate investment trust, or REIT, that owns and operates multifamily apartment properties in key markets across Georgia, North Carolina, Kentucky and Tennessee. According to the company, its investment strategy "is focused on gaining scale within key amenity rich submarkets that offer good school districts, high-quality retail and major employment centers." If you've read anything about real estate markets in this type of in-demand areas, it's incredibly difficult for prospective homeowners to find affordable properties. That means natural demand for the apartment operators like IRT, plus a steady stream of income that can be passed on to shareholders via dividends.
Current yield: 5.4%
Compass Diversified Holdings (CODI)
Compass is a finance and investment company that specializes in buyouts, industry consolidation and recapitalization of industrial companies. A few of its more prominent investments include deals with fuel and food service operator Sterno and gun safe and security firm Liberty Safe. Unlike some deep-pocketed firms who go for big deals and restructurings, CODI is focused on a smaller segment of the market where it has knowledge and expertise. That experience pays in the form of consistent returns on its investments, which are in turn passed on to shareholders via a consistent return from dividends.
Current yield: 7.5%
Outfront Media (OUT)
Outfront is technically a real estate company, as it is structured as a REIT just like aforementioned apartment operator Independent Realty. However, its properties are billboards used for advertising, and increasingly OUT has created lucrative partnerships to put signage on public transportation assets like buses and in subway stations or on city-owned benches and shelters near stops. While the makeup of who is buying ads can change, advertising demand is pretty constant -- particularly where arenas need to advertise upcoming concerts or where real estate agents have a high volume of homes to sell. This customer demand may not ever see breakneck growth, but is great for supporting Outfront's dividends over the long term.
Current yield: 5.2%
New Senior Investment Group (SNR)
Few things in life or certain, but the reality of an aging America seems to be one of them. The population age 65 and older will surge from about 11 million in 2016 to more than 21 million by in 2030. Those older Americans need more care and attention as they age, and that's where New Senior comes in. The firm is a real estate company that is among the largest senior housing properties in the U.S. with 133 facilities across 37 states. The high occupancy rates and steady increase in demand will ensure continued success for SNR in the years ahead, supporting its steady and growing dividend stream to investors.
Current yield: 7.3%
Buckeye Partners (BPL)
Houston-based Buckeye Partners owns and operates energy pipelines and terminals used for all manner of products, from crude oil to jet fuel to gasoline to distillates. BPL boasts 6,000 miles of pipeline primarily in the northeastern and upper midwestern portions of the United States, and services 100 delivery locations and 110 active terminals to service the energy industry's storage and transportation needs. Midstream energy companies like BPL are attractive because they are an important part of the supply chain that comes with less risk. Buckeye collects a small fee as it moves petroleum products around the economy. It's not glamourous, but does result in reliable and generous dividends.
Current yield: 7.3%
Och-Ziff Capital Management (OZM)
A middle-sized investment firm with more than $30 billion in total assets under management, Och-Ziff has nearly three decades of experience managing money for wealthy individuals and institutions like pension funds and foundations. OZM is best known for its alternative asset funds and credit investment funds, which differ from conventional index funds in that they are a bit more sophisticated -- and charge a bit more in fees as a result. Clients are happy to pay a bit more for these premium offerings, and OZM uses a portion of the money it earns to fund generous dividends to its shareholders.
Current yield: 5.3%
