The Best High-Yield Stocks to Buy With $2,000 Right Now

The geopolitical conflict in the Middle East has the world on edge and energy markets in disarray. And still, the S&P 500 index (SNPINDEX: ^GSPC) remains near all-time highs, offering a historically tiny yield of roughly 1.1%. If you are a conservative dividend investor, you can do far better than that with Federal Realty (NYSE: FRT) and Realty Income (NYSE: O), which offer yields of 4.1% and 5%, respectively. These stocks let you sleep well at night, counting dividend checks instead of focusing on the market's news and emotion-driven swings.

Federal Realty is the King of REITs

Federal Realty isn't your typical real estate investment trust (REIT); it stands out from the pack as the only REIT to also be a Dividend King. With 58 annual dividend increases, it has proven to be among the most reliable dividend stocks on Wall Street. Add in the well above market 4.1% dividend yield, and the story gets even better.

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However, the real draw here is the REIT's focus on quality over quantity, with a heavy emphasis on redevelopment and portfolio management. Federal Realty is always working to ensure that its portfolio of roughly 100 strip malls and mixed-use assets is filled with properties that are leaders in the regions they serve. And when a property reaches full value, it will be sold to fund the purchase of a new asset that Federal Realty can upgrade. It's a winning strategy, as the dividend record makes clear.

Realty Income is a mix of yield and reliability

Realty Income has increased its dividend annually for 31 years. It is the largest net-lease REIT, with over 15,500 properties. This landlord focuses on single-tenant retail assets but also has exposure to industrial assets and other, more unique property types, such as casinos and data centers. Its portfolio spans North America and Europe. The REIT is built from the ground up to be a reliable dividend payer.

Net lease properties generally have long leases with built-in rent increases. That helps the company sail through recessions in stride, noting that its occupancy didn't fall below 96% even during the Great Recession. Add in an investment-grade-rated balance sheet, and Realty Income is a diversified sleep-well-at-night REIT that even the most conservative dividend investors should find attractive. That's doubly true given the huge 5% dividend yield on offer.

You can't avoid market volatility, but you can focus on something different

The truth is that there is a lot of uncertainty in the market right now. You can't completely avoid its impact. However, if you buy reliable dividend stocks like Federal Realty and Realty Income, you can focus your attention on reliable dividend checks instead of the ups and downs of the market. With $2,000 you'll be able to buy around 18 shares of Federal Realty or 31 shares of Realty Income.

Reuben Gregg Brewer has positions in Federal Realty Investment Trust and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.