7 Safe Stocks With Great Dividends

It's a common misconception among investors that a high dividend implies that stock is highly volatile or that the company must be in some sort of trouble.There are some cases where this is definitely true. For example, mortgage REITs generally pay dividends of more than 10%, and because of their leverage ratios, they can be some of the more volatile stocks in the market.

Also, there are the "too good to be true" dividends that we see if a company is in trouble. If a company usually pays around 3%, and all of a sudden the share price drops dramatically and the dividend spikes to 8%, it usually means that there's a dividend cut coming or that the company is having serious financial issues.

However, there is such a thing as stable, high-dividend stocks. Here are seven of the best choices for investors who want income but don't want volatility or high risk. All of these pay at least 5% per year and have characteristics that income seekers love -- and they range from basic-needs companies like AT&T (NYSE: T  ) to diversified holding company Icahn Enterprises (NASDAQ: IEP  ) .

Some of the best dividend stocks in the market
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.


Read/Post Comments (0) | Recommend This Article (10)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2974881, ~/Articles/ArticleHandler.aspx, 12/18/2014 4:41:55 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement