When looking for dividend stocks to buy in this market, it’s not simply about watching yield.
There are plenty of ugly stocks that have seen their shares punished — and subsequently are “high-yield dividends stocks” as a result of lower prices.
But what good is a 5% or 6% dividend if the underlying shares lose your three times that across the next year?
There are also plenty of respectable dividend stocks that currently trade at inflated valuations as the market bounces around all-time highs.
Heck, Federal Reserve Chairwoman Janet Yellen herself said herself that stock valuations are “quite high” — so if you’re not worried about overpaying for a sleepy, slow-growth dividend stock then you’re just not paying attention.
In such an environment, it’s important then to look at a combination of factors to find the best dividend stocks. Sure, you want a great yield — at least 3.5% — but you also want strong share performance in the short-term and hopes of continued strength no matter whatever temper tantrums the market throws in the months ahead.
I’ve identified five such stocks here, with five unknown dividend stocks with surprisingly big yields. Take a look: