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Want $100 in Super-Safe Quarterly Dividend Income? Invest $5,635 Into the Following 2 Ultra-High-Yield Stocks.
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Key Points

  • Few investing strategies are more consistently profitable than putting your money to work in high-quality dividend stocks.

  • One of Wall Street's premier real estate investment trusts (REITs) sports a nearly 99% occupancy rate and is well-shielded from recessionary pressures.

  • Meanwhile, a time-tested energy middleman is making bank from long-term, fixed-fee contracts forged with upstream drilling companies.

There is no shortage of strategies to generate wealth on Wall Street, but few have produced more consistent returns than buying and holding high-quality dividend stocks. Companies that pay a regular dividend are often profitable, time-tested, and fully capable of providing a transparent long-term outlook.

Ideally, income investors want the highest possible yield with the least risk -- however, risk and yield often go hand in hand. While some ultra-high-yield dividend stocks are more trouble than they're worth, a few gems exist that are capable of providing super-safe dividend income. If you're looking to receive $100 per quarter in near-guaranteed dividend income, consider splitting $5,635 equally between Realty Income (NYSE: O) and Enterprise Products Partners (NYSE: EPD).

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An up-close view of Ben Franklin's portrait on a one hundred dollar bill.

Image source: Getty Images.

Realty Income: 4.96% yield

There's arguably not a safer ultra-high-yielding stock on Wall Street than retail real estate investment trust (REIT) Realty Income. Since going public in October 1994, its board has raised the company's payout 135 times, including 115 consecutive quarters. Realty Income also doles out its dividend monthly.

Although retailers ebb and flow with the health of the U.S. economy, several factors have helped Realty Income's commercial real estate portfolio avoid this roller-coaster ride. To begin with, the majority of its tenants are in recession-resistant industries and, therefore, draw customer traffic in any environment.

Secondly, the lion's share of Realty Income's leases are of the triple-net (NNN lease) variety. Triple-net leases require the tenant to cover the costs for insurance, maintenance, and property taxes. While NNN leases lower the amount of rental income Realty Income collects, they also remove nearly all surprise expenses from the equation.

Management also deserves credit for locking in long-term leases. Realty Income closed out the March quarter with a weighted-average lease length of 8.7 years and an occupancy rate of almost 99%!

An engineer using a walkie-talkie while standing next to pipeline infrastructure.

Image source: Getty Images.

Enterprise Products Partners: 5.69% yield

The other ultra-safe, supercharged dividend stock that can help generate $100 in quarterly dividend income from an initial investment of $5,635, split equally, is midstream energy company Enterprise Products Partners. Since its July 1998 initial public offering, Enterprise has raised its quarterly distribution 83 times and is currently yielding almost 5.7%.

Whereas upstream drilling companies can be whipsawed by vacillations in crude oil and natural gas prices, midstream companies like Enterprise often avoid this turmoil. It's an operator of transmission pipelines, liquids storage, deepwater docks, and fractionators, and it locks in long-term, fixed-fee contracts.

The key phrase to Enterprise Products Partners' success is "fixed-fee." Spot price changes in energy commodities, along with inflation, don't affect the cash flow Enterprise can generate from its long-term contracts. In other words, management often has one or more years of cash-flow visibility, which comes in handy when making bolt-on acquisitions.

In addition to making acquisitions, Enterprise Products Partners has undertaken more than $5 billion in projects that should be accretive to earnings once in service. Many of these projects are focused on expanding its natural gas liquids exposure, with all expected to be operational by the end of 2027.

Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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