7 Safe High-Yield Dividend Stocks: Collectors Universe (CLCT)
CLCT Dividend Yield: 5.9%
Collectors Universe, Inc. (NASDAQ:CLCT) might seem the oddest choice on this list — and that’s probably the case. The company is an authenticator of coins and sports cards, and for years now, Wall Street has questioned whether the dividend is sustainable.
Well, the dividend is still there, and after dipping in early 2016, CLCT is back near a 15-year high around $24. Even with those gains, Collectors Universe remains a high-yield dividend stock, with a $1.40 dividend offering a 5.9% yield.
There are risks here, to be sure. Collectors Universe’s PSA business has dominant market share, which also limits growth. Cards and coins generally can’t be graded twice, and in sports cards particularly, most of the high-value cards have been graded. The dividend does outpace earnings at the moment, and hasn’t been increased since 2014.
That said, the balance sheet remains strong, with more than $1 per share in cash and no debt. The company also has entered the Chinese market, to some success.
CLCT is probably the riskiest of the dividend stocks on this list from an income standpoint — but there’s still reason for optimism, and to expect more dividends to come.