High-yield dividend stocks can be a great way to build wealth over time. These stocks offer returns that often outperform the broader market, thanks to the power of compounding interest.

However, the tantalizing value proposition of some high-yield stocks can also be a mirage. Mouthwatering yields are often a sign that a company's fundamentals are on shaky ground, and its dividend is unsustainable. 

AT (NYSE: T) and Devon Energy (NYSE: DVN) are prime examples of this fundamental problem with high-yield dividend stocks. Both companies have seen a sharp decline in their share prices in 2023 over balance sheet, competitive, and macroeconomic concerns. 

Continue reading

Source Fool.com