High-yield dividend stocks typically play a vital role for
investors planning for retirement. However, like many things in life, there is
no such thing as a free lunch when it comes to income plays.
Many of the highest-yielding dividend stocks are too good to
be true. Their high yields simply reflect a higher risk profile and an
unsustainable dividend that will be put on the chopping block in the future.
For investors living off dividends in retirement, that’s a disaster just
waiting to happen.
As a result, conservative income investors would do well to
steer clear of most stocks with dividend yields well above 6%.
Today, we’ll review eight dividend stocks that sport a
dividend yield of at least 8%. These companies maintained their payouts during
the financial crisis, and they appear poised to continue delivering generous
dividends over at least the short- to medium-term.
To be clear, these are still “reach” candidates. They need
to be approached with caution. Only more aggressive income investors who are willing
to tolerate higher risk should consider these stocks. But in moderation, they
could do well as a smaller part of a will-diversified dividend portfolio.
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