Top Performing High-Return Stocks to Invest in Instantly with a $1000 Budget
High-Yield Dividend Stocks with Growth Potential
Investors seeking attractive returns and dividend growth can look beyond the S&P 500 for high-yield options. Here are some examples of companies that offer both a healthy dividend yield and growth potential as of mid-2025.
Franklin Templeton (BEN)
Within the asset management industry, Franklin Templeton stands out as one of the top dividend leaders. The company's solid yield makes it an attractive choice for income-focused investors. The business benefits from expanding its asset management operations.
Scotts Company (SMG)
Scotts Company is a consistent dividend payer with a good track record of performance. As the agriculture sector continues to show stable demand, Scotts Company presents a solid investment opportunity.
Hasbro (HAS)
Hasbro offers a steady dividend with growth potential. The company's growth is driven by product innovation and brand strength, making it an appealing choice for investors seeking income and growth.
State Street (STT)
State Street is a reliable dividend stock with a strong balance sheet. Its position in the financial sector positions it well for growth in the coming years.
Blackstone (BX)
Blackstone offers a yield of approximately 2.7% and a 12.4% five-year dividend growth rate. The company's business in alternative asset management, particularly private markets and real estate funds, is expected to experience structural growth.
Other high-yield stocks with growth potential mentioned in broader high-yield lists include Pfizer, PepsiCo, Chevron, and Altria. These companies combine income with strong business fundamentals, offering opportunities beyond the S&P 500 index.
Realty Income (O)
Realty Income is another company worth considering for its high dividend yield. With a history of annual dividend increases for three decades, Realty Income offers a reliable income stream. However, its growth may be slower compared to Brookfield Asset Management. The company's adjusted funds from operations (FFO) payout ratio was approximately 75% in Q1 of 2025.
Brookfield Asset Management (BAM)
Brookfield Asset Management operates in various asset classes, including renewable power, infrastructure, private equity, real estate, and credit. The company's dividend yield is 3.2%, and it has recently increased its dividend by 15%. Brookfield Asset Management aims to manage $1.1 trillion in assets by 2030.
However, it's important to note that Brookfield Asset Management charges fees for its services, which could lead to a potential increase in dividend capacity. The company's business is classified as an alternative asset, a hot niche in the asset management business. Market dynamics may play a significant role in Brookfield Asset Management's ability to gather assets. Each asset class in which Brookfield Asset Management operates is expected to roughly double in size.
In conclusion, both Realty Income and Brookfield Asset Management present smart income options for investors, each with distinct characteristics. With a $1,000 investment, you can purchase approximately 17 shares of Realty Income or 18 shares of Brookfield Asset Management.
[1] Source: Forbes [2] Source: Investopedia [3] Source: Motley Fool [4] Source: The Balance
- Investing in high-yield dividend stocks like Franklin Templeton (BEN), State Street (STT), and Blackstone (BX) can provide attractive returns and dividend growth, helping income-focused investors.
- In the real-estate sector, Realty Income offers a high dividend yield, backed by a history of annual dividend increases, making it an appealing choice for some investors.
- With a focus on alternative asset management, Blackstone provides a yield of approximately 2.7% and a 12.4% five-year dividend growth rate, positioning it as a promising investment option in the stock market.
- Besides these companies, other high-yield dividend stocks with growth potential, such as Pfizer, PepsiCo, Chevron, and Altria, could offer income and strong business fundamentals, providing opportunities that extend beyond the S&P 500 index.
