7 High Yield Dividend Stocks You Can Count On

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.
#dividendstocks #dividendinvesting #dividends

[CliveBirse]

My perspective on dividends is that they may not be beneficial if a company has better uses for its capital. Instead of focusing on dividends, I suggests investing in companies with growth potential. I did this two summers ago and have made over $180k in dividends since then.

[atifmian]

WPC stock crashed last week they might cut the dividend how can you recommend it????

[mcgabriel]

Joseph, it’s the second recent video promoting WPC as having a safe dividend. I’m getting a bit unsure here. Haven’t the managers recently announced a different dividend policy, implying a lower dividend? Otherwise, thank you for many great analysis.

[fleipeg]

WPC announced a 20% div cut recently and will exit its office properties. I'll watch from the sidelines for now

[johnbatkie]

Have to question your analysis of WPC and not discuss their exit of office real estate and the announcement of a new dividend policy.

[emib]

Hi Joseph, WP Carey just announced it will cut the dividend

[Andreallln]

I recently made more purchases. Saving money for a market downturn is likewise a bad idea. There are numerous ways to look at recessions and depressions, we cannot always expect to make large returns, and taking chances is better than doing nothing. The bottom line is that you will achieve remarkable results by diversifying your portfolio and making wise decisions. My portfolio's raw earnings rose by $608k in just 5 months.

[nomadnurse]

I really appreciated the walkthrough on seeking alpha. Very detailed. Very helpful. Thank you!

[mrsterling]

Joseph,
Why are you saying WPC is safe???
They are selling a lot of office space and the dividend is being “reset “.

[mktwatcher]

Good fast reviews of some solid companies. Thank you for ideas like "LEG".

[kjay]

I hope we can hear why he is recommending WPC after they announced a dividend cut.

[briangray]

WPC intends to cut its revenue per the CEO!

[stellanews]

I don't understand why it's important to get dividend when the principal loses value over time. That's the case for some stocks. Can you explain, please. Thanks!

[TheEarthGerm]

Dude when did you record this video, three weeks ago? WPC is spinning off a division of their properties and cutting the dividend. This news is over a week old. WPC, LEG, O, MO are all down big, over 10% the last week.

[jordankendall]

I am surprised you did not mention that WPC is spinning off its office assets into a separate company which may lead to a lower dividend.

[hawdarkshooter]

This is weird that you are promoting WPC when they are going to cut their dividends.

[blockman]

You can call ACF300X bots but that does not change the fact that the shill is absolutely deserved. Out of all launches we had, talk about ETH, talk about XRP, talk about all these new chains but ACF300X breaks everything

[sajio]

Hes so happy about the Recession coming in, like hes super excited to be witnessing it.

[edwinsinceworth]

Is it possible that you could do a segment on yieldmax etfs. Thanks

[ytkung]

ACF300X gang in the house! Thanks for the analysis!