3 Big Dividends Backed By High-Quality Assets

High-Yield Investment Opportunities - Investment income is a key portion of total return, and increasing dividend yield can significantly enhance living standards [1] - High-yield opportunities are often supported by high-quality assets, but the high-yield space is riddled with risks such as unsustainable yields from private equity, private REITs, and leveraged ETFs [2][3] - Dividend policy does not affect shareholder value, as value comes from the company's cashflows, not the payout ratio [4] Risks in High-Yield Investments - Private REITs often offer unsustainable high yields by investing in properties with lower cap rates, leading to eventual dividend cuts and stock price declines [6][7] - Leveraged ETFs amplify yields through high leverage, but market volatility can lead to capital destruction [13][14] - High-risk assets or leveraged investment vehicles can make dividends unreliable, even if cashflows initially cover the yield [11][12] Sustainable High-Yield Opportunities - CTO Realty Growth, Inc (CTO) offers a 7.5% yield, supported by trading below asset value, resulting in higher property-generated cashflows relative to investment [8][9] - CTO is expected to earn AFFO of $2.07 in 2025, providing a 10.24$1.39 in 2024, resulting in a 10.97% yield, funded by profits from a major land sale [19][20] - FPI uses special dividends to convert land appreciation into shareholder returns, with a similar dividend paid in December 2023 [21][22] - While FPI is not typically a dividend stock, it offers a high-yield opportunity for investors who hold shares before the ex-dividend date [23] Summary of High-Yield Opportunities - CTO offers a 7.5% yield with growth potential, DEA provides a 9% yield from reliable assets, and FPI offers a one-time 11% yield [24]