Table of Contents Hide
- High Yield Divided Stocks
- How To Invest In High Yield Dividend Stocks
- Best High Dividend Stocks
- High Yield Dividend Stocks Monthly
- Safest High Yield Dividend Stocks
- High Yield Dividend Stocks 2022
- FAQs On High Yield Dividend Stocks
- Is it smart to invest in high dividend stocks?
- Why do some investors prefer high dividend paying stocks?
- How long do you have to hold a stock to get the dividend?
- Is it good if a dividend yield is high?
- Related Articles
The high-yield dividend stocks are a good option for investors looking for additional income. If you need a passive income to build your investment portfolio, the high dividend stocks are great options. How can you identify the safest monthly high yield dividend stocks to invest in this 2022? This guide entails a list of the best 25+ high yield dividend stocks you can invest in and how to invest in them.
High Yield Divided Stocks
Most investors resort to dividend stocks when looking for low-risk investments, because of the income security they derive from them. Benefits include the regular payment you will receive. Corporations, on the other hand, must be profitable before committing themselves to pay dividends regularly. Some companies in the United States pay a specific amount each quarter, and the best ones raise their payouts over time. Retirees or anyone who needs the income payment willfully accept while others reinvest their dividends.
Investors generally want investments that offer a high dividend yield on their stocks. One of the best seeking high yield dividends on stocks is the Dividend Aristocrats. The dividend aristocrats market is an S&P 500 Market index that includes a subset of the S&P 500 companies. Large companies with consistent dividend payments and strong liquidity make up the Dividend Aristocrats, and the index as a whole may offer greater diversity and flexibility than high-yield dividend indexes. Investors can choose specific Dividend Aristocrats to buy, or settle for ETFs that meet comparable reliability criteria.
To be part of the Dividend aristocrats, the following criteria to be met;
- The company must have a record of increased dividends every year for the past 25 years.
- The company must a market cap of at least $3 billion after adjusting for float.
- They must also have a daily trading value of at least $5 million on average.
- Have a minimum of 40 companies and no single industry can account for more than 30% of the index’s weight.
How To Invest In High Yield Dividend Stocks
It takes time and effort to build a portfolio of individual dividend stocks, however, the result shows it is worth the time, and effort invested in it. Let’s take a look at how to invest in high-yield dividend stocks.
1. Look For Stocks That Pays A Dividend
Many financial and online broker’s websites allow you to search for dividend-paying stocks. All you have to do is search for these using your browser and go through the various option available. This will leads us to the next step.
2. Assess the stock
To better understand the high-dividend stock, compare its dividend yields to its rivals. If it is unusually high when compared with its competitors, it may likely be a very risky investment. There is always a red flag if a company’s dividend yield is significantly higher than that of similar companies. Do not just invest because the company promises a high yield dividend on shareholders’ stocks. Ensure you assess their promise before investing. Go the extra mile with your investigation into the company and the dividend’s safety is warranted. Secondly, keep an eye on the payout ratio. This will keep you at bay from risky investments.
3. Determine the amount of stock you want to purchase.
If you’re buying individual stocks, we advise you to diversify your stocks. Do not invest your entire und in one investment portfolio. This is safer in case the investment is risky, you will not lose your entire funds.
Best High Dividend Stocks
There are diverse companies that promise to pay high dividends yield but keep their promise. How do you identify the right company to invest in, go through our guide on how to invest again. Below is a list of the best high-yield dividend stocks available.
|Lyondell Baseball Industries||LYB||4.39|
|Safety Insurance Group Inc||SAFT||3.96%|
|Digital Realty Trust Inc||DLR||3.44%|
|Ominicim Group Inc||OMC||3.33|
|Bank Of Hawaii Corp||BOH||3.29|
|Extra Space Storage||EXR||3.1%|
High Yield Dividend Stocks Monthly
The following is a list of the best monthly high yield dividend stocks.
#1. AGNC Investment Corp (AGNC)
AGNC Investment Corp tops the list of our monthly high yield dividend stocks with an 11% dividend yield. The AGNC corporation qualifies for tax benefits and is obligated to transfer 90% of taxable income to investors because it is a Real Estate Investment Trust.
Therefore, the company ensures its regular 12-cent monthly payout is in line with the tax benefits rule which resulted in a relatively stable dividend. The Corporation invests in mortgage-related securities, not in residential real estate. This is because mortgage-related securities are federal loans backed by government-support firms. The fact that these assets are backed by the federal government lessens the risk associated with them and encourages investors to invest without fear.
#2. Prospect Capital Corp. (PSEC)
Prospect Capital Corp. since its IPO in 2004, has made over 75 investments totaling over $18.1 billion. It is a business development company that made capital available to middle-market enterprises and private equity financial sponsors. It gives investors a wide range of options with its 127 firms spread across 39 industries. They have a dividend yield of 8.8% and distribute a monthly dividend of 6 cents per share regularly.
#3. Main Street Capital Corp. (MAIN)
The Main Street Capital Corporation is also a company with a monthly high yield dividend. It is also a business development company with $5.7 billion in funds and maintained a strong balance sheet with 184 investments. Main Street Capital invests in the debt of lower middle market companies with yearly revenues ranging from $10 million to $150 million. They have a dividend yield of 6.2% and have paid over $33 per share in dividends during the last 15 years.
#4. LTC Properties Inc. (LTC)
The Company LTC Properties Inc is a real estate investment trust (REIT) that owns and manages senior housing and healthcare properties. Although their share went down by 17% during the pandemic in 2020, they currently have a dividend yield of 6.2%. LTC continued to pay its19-cent monthly dividend irrespective of the difficulties it faced during the pandemic.
#5. Pembina Pipeline Corporation (PBA)
Pembina Pipeline Corp, an oil and gas infrastructural firm based in Western Canada equally made it to the list of our monthly high yield dividend stocks. With a dividend of 5.3%, Pembina has delivered a tremendous one-two punch to investors in 2022. The company has a surging stock price and a consistent monthly dividend of around 16.5 cents. In March 2022, PBAshares rose to over 23.8 %. The rise was the effect of the increase in the price of oil and gas. Currently, Pembina expects to spend $655 million on capital expenditures in 2022 to extend its pipeline network, with any excess cash going toward share buybacks.
Safest High Yield Dividend Stocks
There are dozens of high-yield dividend stocks out there but these may not be safe for you. To be sure your investment is secured, we compiled a list of the safest high yield stock that you can delve into. This list was compiled based on the monthly performance of these high-yield dividend stocks.
Realty income fortunately is part of the dividend aristocrats index with a dividend growth streak of 27 years. It is one of the safest high-yield dividend stocks you can invest in. Its dividend yield is 4.28% and the company is into real estate. The company has also kept an unbroken record of higher dividends since its inception. With more than 6600 properties, the real estate investment trust leases its properties to over 600 clients spread across 50 industries. Realty Income is considered one of the safest high dividends to invest in because, it focuses on long-term leases, and this resulted in a cash flow stream that is relatively reliable.
Southern Company (SO)
Southern Company has been in business for over a century and is one of the leading electricity producers in the United States. With electric utilities in three states and the supply of natural gas utilities in four, the Atlanta-based corporation serves 9 million customers mostly in the Southeastern United States. The company has a dividend yield of 3.83% and a safety score of about 65%. Southern has paid consistent dividends since inception and has increased its payout every year since 2002.
Verizon is a communication-based business wih a dividend of 4.89%, a 15 years growth streak, and a safety score of 87%. The company made it to our list of safest high yield dividend stocks in 2022. The firm’s accomplishment is traced to the billions of dollars and time invested in it. The result is the high ratings the firm receives for its network dependability, speed, and performance.
Verizon should be able to sustain a large customer base as long as it continues to invest in its leading network coverage and architecture. It already has brand awareness, hard to copy network assets, and mission-critical services and this means disrupting its customer base would be nearly difficult but not impossible. Why did we consider Verizon as one of the safest high yield dividend stocks? Because the firm has paid dividends for over 30 years and they had also increased its dividend by 2% every year.
Washington Trust Bancorp (WASH)
The Washington Trust Bancorp has a dividend yield of 3.84%, a safety score of 76%, and an 11 years growth streak. Washington Trust Bancorp is America’s oldest community bank, having been founded in 1800. It is a financial company that raises its revenue from lending operations. Washington Trust had smaller loan losses than its peers throughout the Great Financial Crisis of 2007-09 and the 2020 pandemic. The bank has consistently dividends every year since 1992, because of its broad income stream, in addition to a high share of steady fees from industries such as wealth management.
High Yield Dividend Stocks 2022
The following is our list of the best high-yield dividend stocks in 2022. In computing this list together, we considered the dividend growth rate within the last five years, payment as well as dividend yield, and amount.
|COMPANY NAME||SYMBOLS||DIVIDEND YIELD|
|Altria Group Inc||MO||6.88%|
|Philip Morris International Inc||PM||5.32%|
|National Bankshares Inc||NKSH||3.97%|
|Valero Energy Corp||VLO||3.86%|
|Kimberly Clark Co||KMB||3.77%|
|Principal Financial Group Inc||PFG||3.48%|
|Merck $ Co Inc||MRK||3.36%|
|Evans Bancorp Inc||EVBN||3.26%|
A high-yield dividend investment portfolio takes time to build. It is an investment that grows over time. Therefore investors who desire to accumulate funds through this means must be willing to buy and hold their stock. The buy and hold strategy is a way through which investment portfolios gradually boom with passive income.
FAQs On High Yield Dividend Stocks
Is it smart to invest in high dividend stocks?
Yes but it depends on your investment and earning goals. The high yield dividend stocks are considered one of the safest and best investments for investors who desire to earn income on their investment in 2022. They are a good inflation hedge, especially when they expand over time. When compared with interest on fixed-income investments, they are tax-advantaged. Additionally, dividend-paying companies are less volatile than stocks that do not pay dividends.
Why do some investors prefer high dividend paying stocks?
Generally, payouts may be preferred by investors over capital gains since dividends are less risky than prospective future capital gains. If this were the case, investors would place a higher value on high-payout companies, and a high-payout stock would command a higher price.
How long do you have to hold a stock to get the dividend?
To be eligible for stock dividends, you must buy (or already hold) the stock at least two days before the exact date of record. You are also expected to hold the shares at the close of trade one business day before the ex-date.
Is it good if a dividend yield is high?
A high dividend yield means the company is distributing almost all of its profits to investors instead of plowing it back to grow the business. As a result, it may not always be a favorable sign.
- DIVIDEND STOCKS: Understanding Dividend Stocks and How to Invest
- Dividend Yield: Meaning, Detailed Examples, Formula & Free Investor Tips
- Crypto Exchange: How to Pick the Best & Safest Options
- Dividend Mutual Funds: Definition, How They Work, Pros & Cons
- High Dividend Mutual Funds: Best 2022 Options (Updated)