Investing in Stocks with a high dividend yield is a great choice if you want to build your stash of FU Money and reach Financial Independence.
Many investors look for a regular dividend income and buy high dividend yield stocks to have a consistent monthly cash flow.
If you you want to know how to calculate the Dividend Yeld, take a look Here.
If you want to know more about stocks with a high dividend yeld, continue reading.
How do dividend stocks work.
Dividend stocks distribute on a regular basis a part of the earnings of the company to the shareholders,
Most of the U.S. dividend stocks pay dividends each quarter, and some of the top ones increase their payouts over time.
This is a great opportunity for investors to build a regular cash flow.
Usually a company that pays dividends is solid and well-established, so dividend stocks give a good stability to your investment portfolio.
Investing for an income: Dividend stocks vs. Dividend ETFs
The best ways to get an income stream from dividend stocks are two:
1) Purchasing dividend stocks.
2) Buying shares of ETFs or Mutual funds that hold dividend stocks;
ETFs and mutual funds offer good diversification within a single investment: this means that with just one single investment, you can own an ETF that encompasses a bunch of different stocks that will regularly pay out their dividends, and if one stock suspends the dividend, you can still get your regular income from the others
View our list of the major high-dividend stocks and ETF.
Top paying dividend stocks. Stocks with a high dividend yield.
The following are some of the best stocks with a high dividend yield
REITs (Real estate investment trusts)
By buying a share of a REIT, you are buying companies that own income-producing properties.
e.g. Realty Income (O) DY: 3,99% ; National Retail Properties (NNN) DY: 4,38% .
They provide phone, internet and other related services.
E.g. AT&T (T) DY:7.09% , Verizon (VZ) DY: 4,43%.
They operate in the sector of renewable and non-renewable energy .
e.g. Exxon (XOM) DY: 5,69%, Chevron (CVX) DY: 6.29%
Medical services, pharmaceuticals, insurance, etc.
e.g. Pfizer (PFE) DY: 4.23%
They provide electric energy, water, sewer, etc.
e.g. Edison International (EIX) DY: 4.21%.
These companies operate in the Manufacture of beverages, food, and other personal products.
e.g. Procter and Gamble (PG) DY: 2.12% .
Dividend ETF High Yield
If you want to diversify your portfolio you better get exposure to a bunch of different dividend stocks.
Choosing an ETF is one of the simplest and best ways to have broad exposure and good diversification of your assets.
Here are some of the major Dividend ETF.
- SPDR S&P US Dividend Aristocrats UCITS ETF (ISIN IE00B6YX5D40, Ticker USDV). The S&P High Yield Dividend Aristocrats index tracks the stocks of the S&P Composite 1500 index that have increased dividends every year for at least 20 consecutive years.
- Vanguard FTSE All-World High Dividend Yield UCITS ETF Distributing ( ISIN IE00B8GKDB10, Ticker VHYL ) The FTSE All-World High Dividend Yield index tracks high dividend-yielding equity globally.
- SPDR S&P Euro Dividend Aristocrats UCITS ETF (Dist) (ISIN IE00B5M1WJ87, Ticker EUDV) The S&P Euro High Yield Dividend Aristocrats index tracks the eurozone companies whose dividends have risen in the last 10 consecutive years.