3 Stocks to Buy With Dividends Yielding More Than 3%

If you want both current portfolio income and the chance at long-term growth, then dividend stocks should get the bulk of your attention. Smart investors seek out opportunities among high-yielding dividend stocks that can bounce back from setbacks or keep up their positive momentum in the future. General Electric (NYSE: GE), British American Tobacco (NYSE: BTI), and Rio Tinto (NYSE: RIO) all have dividend yields that exceed 3%, and each one is in an interesting situation that could bring long-term rewards to shareholders.

General Electric has faced some major struggles recently, but its high dividend yield and prospects for future growth make it worth a closer look. The conglomerate resolved after the financial crisis to return to its industrial roots, giving up on its previous strategy that had emphasized the profit potential of the financial services business. However, General Electric's moves to boost its exposure to the energy sector led to difficulties when crude oil prices fell sharply in 2015, and even though GE has doubled down with the recent acquisition of Baker Hughes, energy hasn't yet bounced back. Other industrial areas also haven't met their potential, such as the power business.

Yet new CEO John Flannery has ideas for how to reinvent General Electric, and they're likely to focus on building up greater exposure to areas of strength, such as healthcare, aerospace, remote connectivity, and renewable energy. In the meantime, investors will get a dividend yield that's just shy of 4%, and GE has doubled its quarterly payout since 2010. The conglomerate has faced tough times before and emerged stronger, and General Electric has the potential to do so again.

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Source: Fool.com