Since the market lows set back in March 2009, the S&P 500 and technology-heavy Nasdaq have returned in excess of 200% and nearly 300%, respectively.
The move has also expanded the valuations of many stocks and sectors beyond what we've witnessed for many years. For some investors, this represents an opportunity to take profits, while others are using the low interest rate environment and expanding stock valuations as all the more reason to move some of their holdings into high-yield dividend stocks.
To that end, high-yield dividends, if sustainable by the company that issues them, can be a great investment in a low interest rate environment. With that in mind, today we'll take a brief look at what I consider to be some of the best deals in high-yield dividend stocks.
But one quick note before we do so: High-yield dividends come with risks as well. If a company can't maintain its bountiful dividend, its share price could be affected to a level that's far beyond what you'd receive in dividend payments.
A high-yield dividend might be alluring, but you shouldn't, under any circumstances, blindly chase a stock because of its dividend yield. Additionally, consider the following selections of mine as a jumping-off point for further research on your part and not a concrete declaration that these stocks are definitively headed higher. After all, sometimes good deals are risky propositions.
With this in mind, here are 3 high yielding dividend ideas giving you a safe approach:
3 High Yielding Low Beta Stocks (click to enlarge) |
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