3 High-Yield Dividend Investments to Protect Against Inflation

Whether you’re in retirement or not, generating consistent income can help you navigate the toughest market cycles…

That’s especially true with 8.5% inflation here in the United States.

And that’s only the official number…

I suspect the real rate of inflation is much higher than that given the fact that the government manipulates the factors that go into the “official” number.

So, what’s the real number then?

Well… That all depends on the stuff YOU buy.

Are houses going up 8.5% annually? How about cars? College tuition?

I don’t think so…

Here’s what you can do about it though… You can buy high yielding dividend investments that pay at least 8.5% and give you potential price appreciation in the underlying stock.

Each of these three companies pays over 8.5% annually and can help you weather the ups and downs of the unpredictable market we find ourselves in today.

One even pays a massive 15.95% dividend…

No. 3: Starwood Property Trust, Inc. (NYSE: STWD)

Dividend Yield: 8.97%

Starwood Property Trust Inc, also an American real estate investment trust (REIT) is required to distribute at least 90% of its taxable income as dividends to shareholders. But instead of managing residential mortgages, Starwood originates, acquires, and manages commercial mortgage loans and commercial mortgage-backed securities in the United States and Europe.

The company operates a commercial lending segment, infrastructure lending segment, property segment, and investing and servicing segment. The former acquires and finances mortgages with primary lien positions.

The collateral for these mortgages is mainly office and hospitality properties in Western and Northeastern America. Starwood’s investing and servicing unit primarily generates revenue from the acquisition and sale of commercial mortgage-backed securities.

And right now, the business is doing so well that STWD can afford to pay a solid 7.5% dividend for the foreseeable future.

Starwood has also never missed a dividend payment since going public in 2009. In fact, the company has increased its dividend 4,700% – from $0.01 in 2009 to $0.48 today.

No. 2: Solar Capital Ltd. (NASDAQ: SLRC)

Dividend Yield: 11.27%

Solar Capital Ltd. is an investment company that primarily finances senior secured loans of private mid-cap companies to generate current income. Since senior secured loans are the first to be paid out in case of bankruptcy, it’s safer than all other forms of debt.

Solar Cap’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The company generates revenue primarily in the form of interest; dividend income and others. And that income is then distributed straight into shareholders’ pockets quarterly.

The business hasn’t missed a dividend payment since it went public back in 2010… And I don’t foresee it missing one in the foreseeable future, no matter which way the market turns next.

No. 1: Cherry Hill Mortgage Investment Corp. (NYSE: CHMI)

Dividend Yield: 15.95%

Cherry Hill Mortgage Investment Corp manages real estate in the United States. The company invests in residential mortgage assets with the objective of generating high current yields and risk-adjusted total returns for its stockholders over the long-term.

And since it operates as a REIT, it’s required to pay a minimum of 90% of all taxable income in the form of dividends to shareholders each year.

Cherry Hill generates most of its revenue from residential mortgage-backed securities (RMBS), in the form of Interest income earned for servicing mortgage loans.

Since going public in 2013, CHMI has also never missed a dividend payment. And right now, you can lock in shares for a massive 15.95% yield.