My Top High-Yield Dividend Stock to Buy in August (and It's Not Even Close)
Index fund investors gravitate toward the S&P 500 for its ability to compound returns over time, mainly through the growth of the U.S. economy. However, the vast majority of those returns stem from capital gains. In fact, the average stock in the S&P 500 yields just 1.54% at the time of this writing.
In other words, the S&P 500 usually produces a large return, but very little of the return is guaranteed. Investors that want a higher likely return, even if it comes at the expense of capital gains, may look for dividend stocks with yields that are higher than that of the S&P 500.
Pipeline giant Kinder Morgan (NYSE: KMI) is a high-yield dividend stock with a yield of 6.2%. And although Kinder Morgan's growth prospects are certainly not as attractive as those of the broader stock market, it has what it takes to support its existing dividend and future dividend raises as well. Here's why Kinder Morgan is worth a look.
Source Fool.com
