2 High-Yield Dividend Stocks You Won't Regret Owning
Dividend stocks are an "all-weather" investing vehicle. In bull markets, dividend-paying stocks can ratchet up returns on capital through the power of compounding (when the dividend is reinvested). During bear markets, these types of equities can mitigate downside losses through their regular distributions. Not all dividend stocks are great buys, however.
Stocks with high yields (usually considered to be 4% or higher) can be a value trap. An abnormally high yield can indicate a company with deteriorating fundamentals and a poor long term outlook. Still, there are some high-yield dividend stocks that are dependable income vehicles. Here is a look at two blue chip stocks that offer annualized yields of 5.22% and 6.81%, respectively.
Philip Morris International (NYSE: PM) is the largest tobacco company in the world. PMI sports well-known brands such as Marlboro, it has a global commercial footprint, and it has made significant strides toward transitioning into a "smoke-free" company. Despite the worldwide movement to lower smoking rates, PMI's free cash flows have steadily ticked higher over the past 10 years, along with its share price.
Source Fool.com
