The North American stock markets are trading close to their all-time highs, which leaves investors struggling to uncover a protected location to park their money and earn very good returns from.

Fortunately, capital gains are not the only kinds of returns out there. Obtaining a very good yield on your investment is an superb way to produce extended-term constant returns.

Right here we have undervalued Brookfield House Partners (TSX:BPY.UN)(NASDAQ:BPY), a single of the very best higher-yield dividend stocks to invest in in 2019.

The core small business generates steady returns

Brookfield House is focused in the United States. It has about 60% of its small business in the U.S. About 80% of its balance sheet is in the standard workplace and retail sectors, which kind its core assets. These assets drive most of its extended-term returns.

The opportunistic assets aim for outsized returns

Brookfield House maintains about 20% of its balance sheet in opportunistic investments that aim for larger returns roughly amongst the 18-20% variety.

These could be distressed assets, which the business acquired at a substantial discount to fair worth. These are assets that the business plans to sell some point down the road to capitalize on complete valuation when the respective markets have normalized or when its operational knowledge improves occupancy.

Where’s development coming from?

In any case, Brookfield House is a worth investor in top quality assets. It currently operates in Asian geographies, such as India, China, Japan, and Korea. More than the subsequent decade, it plans to make out its teams and platform in Asia. So, Asia is surely a development location for unitholders to appear forward to.

Of course, Brookfield House is normally on the lookout for possibilities in North America, Europe, and emerging markets, in which it currently operates.

A safe money distribution

Brookfield Property’s money distribution is protected and has elevated by about six% per year on typical given that 2014. In 2018, Brookfield Property’s money distribution remained sustainable with a payout ratio of about 85%. Accounting for capital gains from asset sales, the payout ratio was enhanced to about 60%.

Management estimates earnings development of 7-9% via a quantity of efforts, such as growing occupancy, finishing improvement projects, and capitalizing on totally valued assets to reinvest for larger returns — a mixture leads to an revenue development machine with money distribution per unit development of five-eight% per year.

As of writing, Brookfield House presents a six.six% yield for starters (not the four.75% yield shown on some finance web sites, as Brookfield House presents a U.S. dollar-denominated distribution, which boosts the yield for Canadian investors).

Investor takeaway

At present, investors can invest in a single of the very best dividend stocks for a substantial discount. At $19.92 per unit as of writing, Brookfield House trades at a +30% discount to its IFRS worth.

As a outcome, right here you have a fabulous chance for outsized capital gains and to gather a six.six% yield with the revenue set to develop year soon after year for decades and beyond!

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Fool contributor Kay Ng owns shares of Brookfield House Partners. Brookfield House Partners is a recommendation of Stock Advisor Canada.