Many investors are drawn to dividend stocks because of their income-producing benefits. Like non-dividend-producing stocks, they have the ability to increase in value for financial gain when the stocks are sold. In addition, dividend stocks can produce a regular stream of cash flow for the investor while the stocks are held. Those interested in building a passive income stream often choose to invest in these stocks. Some investors build an incredible portfolio of high-yield dividend stocks that produce enough income for them to live off of in retirement. Regardless of your current investment strategy, dividend stocks may play a role in your investment decisions. Finding the highest yield stocks that are still relatively safe is important for many investors, and you can consider some of these top options to add to your portfolio.
It is possible to find dividend stocks that pay in excess of 10 or 15 percent in dividends, so AT&T’s 5.2 percent dividend may not sound too amazing. However, companies often adjust their dividend payout upward or downward frequently, and what is unique about AT&T’s dividend is that the company has a 25-year history of paying a dividend to investors, and its payout trend has been increasing during this time period. More than that, this is a solid, established company, and the dividend is more than twice that of the average S&P 500 payout.
Like AT&T, Verizon is another excellent stock choice because of its long, steady trend of stable and increasing dividend payouts over time. Since 1984, the dividend payout has either remained the same or increased. It has a sizable payout of 4.5 percent, which provides you with an advantageous and reliable stream of income to enjoy.
BP Prudhoe Bay Royalty Trust
When investing in dividend stocks, it is important to vary your portfolio. Therefore, look outside of the telecom industry, you will find a great dividend through BP Prudhoe Bay Royalty Trust. This oil and gas company currently has a dividend of $4.39, which compares well with the previous two companies on this list. This is a solid company with a great return for investors, and the dividend payout exceeds the average in this industry.
MBT Financial Corp
If you are interested in investing in the financial sector, MBT Financial Corp is a solid dividend-producing stock to consider. This is an established company that regularly adjusts its dividend. While this can create a less reliable income stream than you will enjoy with other stocks, you can enjoy a current yield that exceeds 22 percent.
The tobacco industry continues to be a solid sector to invest funds in, and Philip Morris is a worldwide leader in this industry. In fact, it controls more than 28 percent of the total market share worldwide. This company has consistently paid at least a 4.4 percent dividend since its inception, and its current dividend is at 4.5 percent.
When investing in reliable dividend-producing stocks, it is important to consider the overall reliability of the stock as well as its return. Some stocks may currently pay a higher dividend than these, but these are some of the highest-paying dividend stocks that have consistently performed well for investors. If you are looking for some great new stocks to invest in, these are solid options to consider.