Stocks to buy

3 Stocks to Buy When Your Tax Refund Check Arrives

Whether you’re due a tax refund or not, putting your money to work is important. Indeed, one of the best ways to do that is by investing in strong, high-yielding stocks. The good news is, there are plenty of stocks to buy that fit this profile.

After all, companies with strong cash flows and attractive yields tend to outperform even the worst of markets. According to The Wall Street Journal: “Dividend stocks have become the new darling on Wall Street, and investors looking for income are pouring billions of dollars into them. These securities are considered a good buffer during times of market volatility.”

Also, according to Charles Schwab’s Jeffrey Kleintop, “We talk about characteristics of stocks that are outperforming across sectors and those tend to be value factors and high-quality factors. The one I’ve been focused on most lately is high dividend payers… They’ve done incredibly well and usually a high dividend is a sign of good cash flow and a good balance sheet, and investors are seeking that out,” as quoted by TipRanks.com.

With that said, here are three stocks to buy when your refund check arrives. These are all companies I’d put in the higher-yielding category, but they’re also ones I’d consider holding for the long-haul.

MPW Medical Properties Trust $12.53
SCHV Schwab U.S. Large Cap Value ETF $68.71
ENB Enbridge $39.70

Medical Properties Trust (MPW)

Source: Shutterstock

First on this list of stocks to buy is Medical Properties Trust (NYSE:MPW). At the moment, this REIT carries a juicy dividend of 9.4%. It also owns 435 facilities with about 44,000 beds all over the U.S., Australia, Colombia, and in parts of Europe.

Granted, 2022 was a challenge for the company thanks to fears of recession, inflation, and concerns about the financial stability of a key tenant – Pipeline Health – which was forced to file for bankruptcy.

Fortunately for MPW, Pipeline Health will pay all of the rent it owes. According to a Medical Properties press release,MPT will be paid all rent that accrued through the first half of January 2023, and it has agreed to defer approximately $5.6 million, or approximately 30%, of 2023 cash rent into 2024 when it will be collected with interest.”

Thus, this is a higher-risk, higher-yielding stock I think the market is mis-pricing here.

Schwab U.S. Large Cap Value ETF (SCHV)

Source: Shutterstock

One of the best ways to diversify is via utilizing exchange traded funds (ETFs). One such ETF I think investors may want to consider right now is the Schwab U.S. Large Cap Value ETF (NYSEARCA:SCHV), which carries a balanced portfolio of large cap value stocks. With an expense ratio of only 0.04%, the ETF offers ultra-cheap exposure to some of the best and highest-quality names in the world.

Indeed, there may be ETFs out there that provide better diversification at a lower price. However, I haven’t found one. This ETF’s exposure to such a broad range of companies at such a low price can’t be understated. For example, if i wanted to buy 100 shares of the ETF, it would cost me just over $6,904. Meanwhile, if I were to buy 100 shares of just Home Depot, it would cost more than $32,500 for one that just stock. Plus, the SCHV ETF has a quarterly dividend yield of 2.36%, which was last paid on Dec. 12.

Enbridge (ENB)

Source: JHVEPhoto / Shutterstock.com

Rounding out this list of stocks to buy is high-yielding Enbridge (NYSE:ENB). With a dividend yield of 6.5%, Enbridge is a lower-risk, high-yield opportunity that should keep your portfolio safe from chaos. The company has a wide moat in the energy infrastructure space, operating the second-longest natural gas pipeline in the U.S., North America’s longest crude oil pipeline, and a high-growth renewable power generation business.

Even better, the company just boosted its quarterly dividend to $0.8875 per share. This dividend is payable on Mar. 1 to shareholders of record as of Feb. 15, 2023. Moving forward, Enbridge reiterated its 2022 full-year revenue guidance for adjusted EBITDA of $15 billion to $15.6 billion. It also announced 2023 EBITDA guidance of $15.9 billion to $16.5 billion. In short, Enbridge should have quite a year in 2023, and this is certainly a company I’d put in the stocks to buy post-refund-check for investors able to do so.

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

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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