Some things just go together. Batman and Robin. Peanut butter and jelly. Kermit and Miss Piggy.
However, there are also things that some think go together that really aren't necessarily joined at the hip. I'd put the pairing of high dividend yields and high levels of risk in that category.
Sure, there are plenty of examples of very risky stocks that offer high yields, but that isn't always the case. Here are five of the safest high-yield dividend stocks on the planet.
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1. Easterly Government Properties
I can't think of a safer high-yield stock than Easterly Government Properties (DEA 1.49%). The company's dividend yield currently tops 5%, which certainly puts it in the high-yield group. But why is Easterly safe? The company's name provides a big hint.
Easterly is a real estate investment trust (REIT) that specializes in leasing properties to U.S. federal government agencies. There's arguably no safer tenant in the world than Uncle Sam.
Federal agencies are also likely to lease more properties versus owning buildings in the future than they do now due to tight budgets. While there are other REITs in this space, Easterly has a secure spot among the market leaders.
2. Verizon Communications
Verizon Communications (VZ 0.90%) has increased its dividend payout for 15 consecutive years. Its dividend yield stands at close to 4.8%. The company's dividend payout ratio is a healthy 47.7%.
Sure, the telecommunications business is highly competitive. However, there are also huge barriers to entry. It's unlikely that Verizon will be knocked off its perch anytime soon.
Instead, the company should have significant growth opportunities. In particular, the increased adoption of 5G networks seems likely to serve as a major tailwind for Verizon for years to come.
3. IBM
IBM (IBM 0.06%) could be reasonably viewed as a great dividend stock. Big Blue ranks as a Dividend Aristocrat with 26 consecutive years of dividend increases. It's paid a dividend every quarter since 1916 and currently offers a juicy yield of 5.3%.
Granted, the stock's performance in recent years hasn't been anything to crow about. But IBM is now dirt cheap, with shares trading at barely over 12 times expected earnings.
Don't write off IBM's growth prospects. The company's hybrid cloud and consulting businesses continue to pick up momentum. IBM also has a hefty cash stockpile and strong cash flow that enable it to invest in future growth opportunities.
4. Enterprise Products Partners
Enterprise Products Partners (EPD 1.41%) isn't just a high-yield stock -- it's an ultra-high-yield stock with a dividend yield of nearly 7.4%. The midstream energy company has also increased its dividend distribution for 23 years in a row.
But is any stock connected to fossil fuels safe? I think that Enterprise is. The current market dynamics that are serving as tailwinds for the company could lead to increased demand for the oil, natural gas, and petrochemicals that flow through Enterprise's pipelines.
The company's dividends alone could more than double your money within the next 10 years. And that's at current payout levels without any share appreciation. I look for more distribution increases and more growth from Enterprise for years to come.
5. Medical Properties Trust
Like Easterly Government Properties, Medical Properties Trust (MPW -8.68%) is a REIT with an attractive dividend. MPT's dividend currently yields 5.7%. The company has increased its dividend for eight consecutive years.
MPT owns around 440 properties in nine countries, including the U.S. Most of these properties are acute-care hospitals. The company also owns behavioral health facilities, inpatient rehab facilities, long-term acute-care hospitals, and freestanding emergency-room and urgent-care facilities.
Demand for healthcare services is likely to increase with aging demographic trends. MPT has also diversified its tenant base, and now leases properties to 53 hospital operators. The company's largest single property makes up less than 3% of its total portfolio.
