High-yield dividend stocks often deliver better-than-average returns for investors over the long term, thanks to the power of compounding. Not all high-yield dividend stocks are table-pounding buys, however. A mouthwatering yield can be a red flag, indicating a company with a deteriorating outlook. Hence, investors have to be exceptionally picky when it comes to this group of passive-income plays.

Which high-yield dividend stocks are worth buying? For my money, I like both (NYSE: PFE) and AT (NYSE: T) right now. Both companies sport exceedingly high dividend yields (4.6% and 7.83%, respectively), attractive valuations, and entrenched competitive positions. Here's why savvy investors might want to pick up these two high-yield dividend stocks soon. 

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Source Fool.com