3 Top Dividend Stocks With Yields Over 4%
There are plenty of dividend stocks that handily outrun the S&P 500's tiny 1.7% yield. High yields can, however, sometimes be value traps that you don't want to get tangled into. The key to making real money from dividend stocks is to lock in a high yield in a company that looks well placed to preserve its dividend payout even through tough times. Like the three stocks I discuss here, each having entirely different catalysts backing them to support their dividend yields.
Somber stock price performance has pushed PPL's (NYSE: PPL) yield to 6.4%, but a potential turnaround could bring an end to the utility's worst days.
You see, PPL's utility operations in the U.K., also its largest source of income, have been under the scanner for several reasons, including political uncertainty and the impact of foreign currency fluctuations. As a U.S.-based company headquartered in Allentown, Pennsylvania, PPL reports earnings in U.S. dollars and translates pound sterling earnings from its U.K. regulated segment to U.S. dollars. Considering the segment contributed 56% to PPL's total net income in 2019, even a small decline in the value of pound can deeply hurt PPL's earnings.
Source Fool.com
