Stocks to Buy in February 2020

February offers income investors ample opportunity to buy high-yield dividend stocks. With the last few months of market gains, it’s easy to forget that companies paying out dividends have greater annualized returns than those companies that did not.

High-yield stocks do not come without risk, however, so choosing the right stock requires research and time. Investors in these stocks must be willing to buy, hold and reinvest in these stocks, in order to see the best returns. Here are three high-dividend stocks to buy in February:

Annaly Capital Management:NYSE: NLY

Annaly Capital Management is a mortgage real estate investment trust, with a profound ability to (when given warning) adjust to the market. Annaly Capital Management grows its revenue by borrowing at short-term rates and purchasing assets with higher long-term yields. Annaly uses this net interest margin to stack up profits. Better yet, Annaly’s dividend yield is floating at around 10%.

Antero Midstream: NYSE: AM

Antero is an ultra-high-yield dividend stock, getting no credit from wall street. Antero recently announced a fourth-quarter payout of $0.3075 per share, making their annualized dividend yield around 24%. Even taking half a payout hit in dividend yield, they are still making a 12% yielding stock.

Part of the reason why Antero is not finding wall street notoriety is the weak price of natural gas. With demand for natural gas as a liquid expecting to quadruple over the next ten years, Antero is in a prime position to grow with this increased demand.

Alliance Resource Partners: NASDAQ: ARLP

Wall Street’s somewhat negative outlook on coal-based companies has this stock off most people’s radar. Alliance coal worries and a lower payout have made this stock hit an 11-year low. Although this may seem bleak, this low price makes for a great opportunity to open a position in a company with a nearly 17% dividend yield.

Alliance deals in wholesale contracts with locked-in price and volume, this isolates the company from short-term swings in the spot sale coal markets. The company lists 29.4 million tons already committed for this year, with another 18.4 million tons locked in for 2021. Alliance began diversifying by acquiring oil and gas assets, and these new assets made for 7% of consolidated segment adjusted EBITDA in 2019.