5. TerraForm Power Inc.
This energy company was one of many that came about in a $100.00-per-barrel environment. TerraForm Power, Inc. (NASDAQ:TERP), in particular, was created at the tail end of the boom, but not to take advantage of high oil prices; TerraForm is a renewable energy stock.
The idea was that individuals and companies would seek alternative energy solutions as a way to cut costs. Naturally, the supply glut in fossil fuels posed a problem to that plan. But TerraForm is still structured as a yieldco, which means it’s oriented towards high dividend payouts. TERP stock pays a massive 16.5% dividend and the steep fall in its stock price has made TerraForm an affordable pick.
6. Two Harbors Investment Corp.
Now that the housing industry is picking back up, an old favorite is climbing back up my wish list. Two Harbors Investment Corp. (NYSE:TWO) is a real estate income trust that owns mortgage-backed assets and passes through the income to shareholders.
That means owning Two Harbors stock can bring in a healthy 12.2% return from the dividend alone. The management team at Two Harbors is careful and brilliant in amassing a mixed portfolio of government-backed assets and regular mortgage-backed securities.
7. Frontier Communications Corporation
My last pick for my dream retirement portfolio is Frontier Communications Corporation (NASDAQ:FTR). This company operates in 28 states and provides broadband and other services to rural areas. And it’s not like the Internet is going anywhere; it’s an indispensable part of life now.
In fact, 78% of adults in a rural area have an Internet connection compared to 60% just 10 years ago. (Source: “Americans’ Internet Access: 2000-2015,” Pew Research Center, June 26, 2015.) That may seem low to city dwellers, but it means that Frontier has space for growth. With an 8.7% yield, Frontier adds some nice little padding to any portfolio.