February 2, 2022

9 High-Yield Stocks Doling Out 5% or More

 

These high-income stocks deliver on headline yield, offering up between roughly 5% and 9%. They also have the financial fortitude to keep those payouts coming.

 


When you're seeking out high-yield stocks, remember: You need more than headline yield – you also need an element of safety.

 

In today's world, which is characterized by historically low interest rates, stocks with eye-popping dividend yields are often too good to be true. From dangerous debt loads to businesses in secular decline, high-dividend stocks require extra scrutiny to avoid investing in yield traps. That goes doubly for investors looking for retirement stocks capable of producing income for decades down the road.

 

Research firm Simply Safe Dividends developed a Dividend Safety Score system to separate stocks with safe dividends from those that are more likely to cut their payouts over a full economic cycle. By focusing on companies with more conservative payout ratios, stronger balance sheets and business models that generate predictable cash flow, investors can improve their chances of selecting dependable income investments.

 

 

With these qualities in mind, here are nine of the best high-yield stocks on the market today. Caution is always advised when considering investments with yields this elevated. But the companies featured here appear better positioned to continue paying a high level of income than many other stocks boasting similar yields. Specifically, the following picks not only sport dividend yields between 5% and 9%, but also pass muster with SSD's Dividend Safety Score system.

 

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