In this low-interest-rate environment, it’s only natural for investors to want to chase dividend yield to generate enough income to meet whatever commitments those cash flows are used for. The problem is that high yield often translates into high risk, and the closer you are to retirement, the less you can afford to see your income flushed down the toilet.
Investing in dividend stocks doesn’t mean you have to go down that road to meet your income goals. Investors who’ve refrained from playing this game over the past five years by accepting reasonable dividend yields from companies whose businesses were growing have easily been able to replace the income lost by opting for 2% yields instead of 5%.
Here are seven dividend stocks with “hidden” yields that you should own...