3 Top Dividend Stocks Currently Yielding More Than 5%
If you're an investor who likes high-yield dividend stocks, you probably already know that not all that glitters is gold. Companies sometimes distribute unusually high dividends to make their stock more appealing in the aftermath of a price collapse or a slew of bad news. Some dividend yields get an artificial boost after a company's stock's price craters but management makes the intentional choice not to cut the dividend. On the other hand, many companies offering high dividends do so as an intentional signal of their ongoing financial strength. Discriminating between these cases is thus critical for investors seeking yield.
When you're sorting through stocks with dividend yields above 5%, you'll need to tread carefully and pick companies with consistently high yields that have been growing sustainably over time, rather than those that only recently increased their payout to levels that they can't possibly maintain. It might also be worth considering stocks that have recently taken a beating without reducing their dividends, so as to purchase them at a bargain.
Source Fool.com
