Not all high-paying dividend stocks are created equal, but investors wanting impressive yields should consider these 10 quality picks.
The dividend yield on the S&P 500 has been hovering near
its lowest level in roughly two decades for some time now, and while it's
starting to move higher, it's still at a paltry 1.7%. So what are yield-hungry
investors left to do?
Thankfully, there is no shortage of high-paying dividend
stocks on Wall Street. And in a time of market volatility, like we've seen
throughout 2022, quality income-paying names can be used as a defensive play in
portfolios.
"We have continued to highlight the importance of
dividends in the current backdrop, where we have seen wide performance spreads
between dividend payers versus non-payers," says Jill Carey Hall, equity
and quant strategist at BofA Securities. Looking specifically at small-cap stocks,
Carey notes that "dividend yield has been the best-performing long
factor" for the year-to-date.
However, not all dividend stocks are created equal, and it
can be a dangerous practice for investors to simply chase yield. Many times, a
company's high yield can be a sign of trouble in its underlying business.
With that in mind, we've selected 10 high-paying dividend
stocks with yields of 5% or more. However, we didn't just randomly pick names,
though. To put together a list of quality firms, we looked for companies with
solid fundamentals, generous yields and backing from the analyst community.
Investing in sturdy dividend stocks remains a favorite strategy on Wall Street
and these ones are worth a closer look.
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