2 unusually-high-yield stocks on my radar for April

With higher returns, higher risks. But that doesn’t mean I should automatically dump any dividend yielding stock above FTSE 100 average. With us now entering Q2, I am looking for ways to increase my earning potential over the summer.

Here are two stocks I have on my radar to buy.

Help people in need

The first is Civitas Social Housing (LSE: CSH). This is a real estate investment trust (REIT). The share price has fallen by 40% over the past year, which is one of the factors that has led to a dividend payout of 10.89%.

The business focuses on investing in social housing projects in the UK. It has a portfolio of 697 properties, with more than 4,500 rentals. It is looking for opportunities in newly built premises, as well as renovated properties and existing properties that have been renovated.

As a REIT, it has a mandate to pay out a set amount of profits as income (from rental payments). This gives me confidence that dividends in some form will always pay off.

Changes in the share price of PT. Furthermore, businesses will find it more expensive to take on more debt to buy property up front because of higher interest rates.

I accept the risk, but the strong financial records reported in the half-yearly update. I also like the ESG focus and the benefit to society that the company supports through the provision of social housing.

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Invest in the future

The second company is Digital 9 Infrastructure (LSE:DGI9). At FTSE 250 the company only goes public in 2021, but now it offers one of the highest yields in the index, at 9.10%. However, the stock price has fallen 39% over the past year.

As the name suggests, the business invests in digital infrastructure projects. In practical terms, this means things like data centers and subsea fiber systems.

Given the way the world is going, digital continues to rule and prosper. I can only see demand for this project increasing in the future, with Digital 9 well placed to benefit from providing capital and reaping returns.

Of course, the concern is the fall in stock prices. In its annual report, the business highlighted challenges including high inflation, high interest rates and the departure of key personnel in the investment team.

But with two high-yield stocks, the fall in the stock price helps to elevate the yield. This goes back to the first sentence, that higher returns mean higher risk.

Both stocks are on my watch list for April. I see myself buying shares at some point. However, I want to see if they continue to fall in the next couple of weeks before making a decision… buy, or continue to watch and wait.