3 Higher-Risk Dividend Stocks With Big Upside Potential
A high dividend yield is often (but not always) a sign of a higher risk profile. The higher dividend is an investor's reward for taking on more risk. However, the risk is that the payout might hit the chopping block if the company's financial profile deteriorates.
Risk-tolerant investors have several alluring options these days, given all the uncertainty in the economy and broader market. Three high-yielding dividends stocks with big upside potential are Devon Energy (NYSE: DVN), Medical Properties Trust (NYSE: MPW), and Pioneer Natural Resources (NYSE: PXD).
Devon Energy's dividend has two components. The oil and gas producer pays a fixed based dividend that it can sustain at lower energy prices. In addition, it pays up to half its post-base-dividend free cash flow each quarter via a variable dividend. Given that framework, Devon's dividend payment can vary significantly from quarter to quarter based on its volatile oil-fueled cash flows:
Source Fool.com
