Legal Money Printer? 7 No-Brainer Stocks for Endless Income Streams.

Cash is the lifeblood of any business, and the end goal of every startup is to generate as much cash as it can and then return that cash to its shareholders through either buybacks or dividends. While it’s exciting to invest in growth companies and startups in the hopes that they will deliver significant returns in the long run, this approach also exposes you to significant risk. This has led to this list of stocks for endless income.

That’s why it’s crucial to keep a portion of your portfolio in income stocks. These stocks add ballast during market downturns, as cash-rich companies are usually mature and have resilient businesses. Moreover, if they have dividends, they can help out with extra cash during bad times – a lifeline when the markets are tumultuous.

So let’s look at seven stocks for endless income.

Stag Industrial (STAG)

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Stag Industrial (NYSE:STAG) is a REIT executing well thanks to strong tailwinds in the industrial property market. While the U.S. offshored operations for years, rapid reshoring is now occurring as companies onshore activities. Many overlook this trend since industrial falls under the struggling commercial real estate umbrella. But industrial looks to be the bright light, and STAG offers an excellent way to capitalize.

STAG’s Q4 results showcase the momentum, with revenue up 7.6% year-over-year to $183 million and net income surging 40% to nearly $42 million. Margins also expanded impressively. Looking ahead, I expect this growth trajectory to continue. Estimates call for FFO, a key REIT metric, to reach $2.63 per share by 2026 from $2.39 in 2024. Revenue is projected to jump 6.8% this year to $756 million and another 8.2% in 2025. It’s one of those stocks for endless income.

Given STAG’s history of exceeding expectations, including the 2.2% Q4 beat, these targets could prove conservative. The stock also provides an attractive 3.9% dividend yield. All in all, STAG appears set to keep rewarding investors as industrial demand flourishes.

Equinix (EQIX)

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Equinix (NASDAQ:EQIX) is an under-the-radar income stocks play on the exploding data and computing sectors. As a digital infrastructure REIT specializing in data centers and connectivity, EQIX benefits from the surging demand driven by AI startups and the continued digital shift. We’ve seen stocks like Nvidia (NASDAQ:NVDA) skyrocket from these trends, but EQIX offers a more diversified route to capitalize.

Some investors grew concerned after the recent short report from Hindenburg Research accusing EQIX of hyping up its AI usage and misclassifying some expenses. However, EQIX mentioning AI is no different than countless other companies across sectors – it’s not just hype but a real demand catalyst. The stock’s resilience since the report is telling.

Also, every company right now is screaming “AI” at the top of their lungs. You could go look up companies completely unrelated to AI – like agriculture, and you’d still find their management boasting about how their company uses artificial intelligence. Equinix deserves the benefit of the doubt. This makes it one of those stocks for endless income.

In Q4, EQIX posted a blowout 15% revenue growth to nearly $2 billion, while net income rocketed 77% to $228 million. The 2.1% dividend yield provides a nice kicker, but the real narrative is cash flow. EQIX has grown FCF at a monster 147% pace over three years, beating 98% of peers!

CBRE Group (CBRE)

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CBRE Group (NYSE:CBRE) isn’t churning out dividends, but it is doing a fair amount of buybacks and could have a lot of cash flowing in. The resilience here impresses me the most. In Q4 2023, revenue nearly reached $9 billion, beating expectations by 6%. That’s remarkable given the commercial real estate sector’s challenges.

Of course, dividends are only as strong as the cash flows funding them. Unfortunately, CBRE generated a only $18 million in free cash flow for 2023, that hasn’t provided ample coverage for those juicy payouts. However, what makes me bullish is that management is guiding for $1 billion in cash flow this year. This should allow it to buy back even more stock or initiate a decent dividend. That would lift up the stock and provide income. I expect this cash flow to rebound and grow beyond $1 billion in the coming years once commercial real estate recovers. This makes it one of those stocks for endless income.

Innovative Industrial Properties (IIPR)

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Innovative Industrial Properties (NYSE:IIPR) specializes in leasing facilities to medical cannabis operators, and it pays to play in this niche. Boasting a mouth-watering 7% dividend yield, IIPR is a joint income investors won’t want to pass up.

But there’s more to this high-flying REIT than just its hefty payout. IIPR delivered solid results in Q4 2023, with revenue soaring 12% year-over-year to $79 million. Funds from operations (FFO), a key REIT metric, also impressed at $2.3 per share, easily covering the dividend.

The balance sheet is healthy over $140 million in cash $302 million in debt. Rate cuts should make the debt matter a lot less in the coming quarters. Thus, this REIT has ample flexibility to expand its portfolio and keep rewarding shareholders. I believe it is one of the best income stocks as it also has significant upside potential.

Public Storage (PSA)

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Storage is trending, and few execute better than Public Storage (NYSE:PSA). This self-storage REIT boasts an impressive track record of consistent cash distribution to shareholders. With a 4.15% dividend yield, it’s a reliable income choice.

2023 core FFO per share grew 8.3% year-over-year. Same-store cost operations increased 5.1% as square foot occupancy remained strong at 92.7% despite a small decline.

What I find particularly compelling about PSA is its scale. With thousands of locations across the U.S., this REIT enjoys significant market share. This provides the company with an edge in acquiring properties and achieving economies of scale. Plus, with over $370 million in cash, PSA has ample capital to fund growth and sustain dividends. All things considered, it’s a self-storage stalwart income investors can rely on.

Public Service Enterprise Group (PEG)

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Every portfolio needs a dash of regulated power, and income stocks like Public Service Enterprise Group (NYSE:PEG) could provide the perfect spark to ignite your income streams. This utility holding company has hiked dividends for over 13 years consecutively. With a current 3.4% yield, it offers dependable payouts.

The company has invested heavily in clean energy and modernizing infrastructure. These investments are expected to pay off, with EPS growth expected to be well above 5% annually in the coming years.

I’m particularly bullish due to PEG filing its first rate case in nearly 6 years. If approved, it could meaningfully boost earnings and support future dividend hikes. The case includes mechanisms to reduce customer bill volatility, a wise move given inflation. With robust investment and a supportive New Jersey regulatory environment, PEG seems set to sustain those dividends for years. It’s a utility name high on my income watchlist.

T-Mobile (TMUS)

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This wireless maverick may not be known as one of the income stocks for fat yields, with a modest 1.6% yield currently. But sometimes headline dividend numbers don’t tell the whole story.

T-Mobile (NASDAQ:TMUS) has been crushing it in terms of customer growth and profitability. In Q4 2023, the company added a staggering 3.1 million postpaid net additions.

So why am I bullish on TMUS as an income play despite the low yield? Because I believe the company’s robust growth and cash generation will lead to much larger payouts eventually. With Sprint integration costs fading and massive 5G leadership, T-Mobile has huge potential to grow dividends over time. It’s a bet on what the un-carrier could transform into as a cash cow. It’s also one of those stocks for endless income.

On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.

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