Buy the fear like Warren Buffett. Here are 3 top stocks yielding as high as 9.2% — so you can ‘make your money on inactivity’

Buy fear like Warren Buffett. Here are 3 top stocks with returns of up to 9.2% - so you can make your money from inactivity.
Everyone wants to buy low and sell high. But that's a lot easier said than done -- especially in a falling market. The S&P 500 is down 16.5% year-to-date.
But you don't need a recovering market to make money in stocks. You can also collect dividends.
Instead of trying to catch a stock's next move up or down, dividend investors can just sit back, relax, and let the dividend checks roll in.
After all, Warren Buffett once said, "Wall Street makes its money from activity. You make your money from inactivity.”
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It's hard to be a buyer of anything in a market where everyone seems to be panic selling. But on the other hand, many investors became successful because they were opposites.
"Be fearful when others are greedy and greedy when others are fearful."
This is perhaps Buffett's most famous quote.
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With that in mind, here's a look at three companies that are delivering outsize dividend checks to investors. Wall Street also sees an advantage in this trio.
AT&T (T)
We pay our cell phone bills and internet bills every month. If you want to make up for it, consider collecting dividends from companies that provide these services.
AT&T, for example, is one of the largest telecommunications companies in the world. More than 100 million US consumers use its wireless and broadband services. At the same time, the company also serves nearly all Fortune 1000 companies with connectivity and intelligent solutions.
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And because wireless and Internet services are essential to today's economy, AT&T generates repeat business through thick and thin.
The company pays a dividend of 27.75 cents per share quarterly, for an annual yield of 5.9%.
Raymond James analyst Frank Louthan has given AT&T a "strong buy" rating and a price target of $24. Considering that AT&T shares currently trade at around $18.90 apiece, the price target implies a potential upside of 27%.
Real Estate Income (O)
Realty Income is a real estate investment trust with a portfolio of over 11,700 properties under long-term leases.
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Top tenants include big names like Walmart, CVS Pharmacy, and Walgreens -- companies that have survived and thrived through thick and thin.
In fact, the REIT claims it collects around 43% of its total rent from prime tenants. A diversified, high-quality tenant base enables Realty Income to pay reliable dividends.
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While most dividend-paying companies follow a quarterly payout schedule, Realty Income pays its shareholders every month.
The share is currently yielding 4.6%.
Morgan Stanley analyst Ronald Kamdem has rated Realty Income as "overweight" and has a price target of $74 -- about 13% above current levels.
MPLX (MPLX)
MPLX is not a household name like AT&T. But for serious yield-hunters, it's a stock that probably shouldn't be ignored.
Headquartered in Findlay, Ohio, MPLX is a master limited partnership formed by Marathon Petroleum to own, operate, develop and acquire midstream energy infrastructure assets.
The partnership pays quarterly cash distributions of 77.50 cents per unit. With the stock trading at $33.73, that translates to a healthy annual dividend yield of 9.2%.
In the third quarter, MPLX generated distributable cash flow of $1.26 billion, which represented 1.58 times coverage of its cash distribution for the quarter.
The stock is also up 12.8% year-to-date, in stark contrast to the S&P 500's double-digit loss over the same period.
Wells Fargo analyst Michael Blum sees more upside on the horizon. Blum has rated MPLX as "overweight" with a price target of $40, which represents upside potential of about 19% from where the stock is today.
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This article is informational only and should not be construed as advice. It is provided without any guarantee.
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