High-dividend stocks are a popular investment because this low-interest-rate environment provides few sources of income right now.
But investors need to remember that not all high-dividend stocks are created equal. Many companies that offer big yields can’t sustain those payouts, and the high dividends dwindle to nothing as earnings dry up. As for other high-dividend stocks, they may deliver a good 5% or 7% in income… but that’s not enough to offset deep share price declines.
So when investors look for the best high-dividend stocks, they should seek out companies that can sustain their payouts, that are seeing their share price rise and have a decent future beyond simply the next quarterly distribution.
Five such high-dividend stocks I like right now include Calumet Specialty Products Partners (CLMT), Omega Healthcare Investors (OHI), CenturyLink (CTL), Alliance Bernstein (AB) and MFA Financial (MFA).
Here’s a closer look at each.