7 High Yield Dividend Stocks You Can Count On

Joseph Hogue
•October 4th, 2023
DESCRIPTION
Dividend cuts wiped out $220 billion in cash payments over the last few years. Finding the safest dividend stocks means knowing what to look for and I've found seven dividend stocks you can count on. These dividend payers not only maintain their payouts but increase them! ✅ 14-Day Free Trial and get 30% off Premium Access to the largest investment analysis community in the world! https://mystockmarketbasics.com/SeekingAlphaDiscount
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It is the era of dividend cuts. First the pandemic forced companies to cut payouts by 12% in 2020, slashing investor cash return by $220 billion! Another 232 companies cut their dividend last year, lowering dividends by a combined $15.2 billion and the pain continues this year with heavyweights like Intel, Rite-Aid and MPW.
Fortunately, I found seven dividend stocks with an average 8.1% yield and more importantly, the safety to know the dividend will keep paying out. I’ll reveal those seven high yield stocks along with how I found them and how to avoid dividend cuts. Finding the safest dividend stocks means knowing what to look for...here's what I looked for in this dividend stock list.
I first looked for the company's payout ratio. That's the percentage of earnings needed to pay the dividend and it's the #1 measure of dividend safety. If a company isn't making enough profit to pay the dividend, you know a cut isn't far off. I compared the current payout ratio to the company's industry and its own history to make sure it's safe.
I also looked at the stock's history of dividend payments to see that management was prioritizing growth in cash return. Once a dividend cut has been made in the past, it gets easier to do it again. I also looked at the stock's dividend growth. A company with a history of growing the dividend may not always increase the payment but it probably won't cut.
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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through dividend stocks, investing and ways to make more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
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