There are many reasons to seek out stocks that come with a high returning yield. Especially so during the pandemic, when you can not leave your home as often. Many people are choosing to start day trading just to make ends meet during quarantines. However, this carries more risk than investing in a company for a longer-term.
If you are seeking high dividends but want to avoid the risk, then you are going to want to consider a stock at around 5%. Anything that is offering you 10%, or even higher, back is an extreme risk. It can be tempting, but you might end up hurting your bank account.
If you want to find these stocks on your own, you should check the DIVCON system often, as it shows what the probability is of you receiving a portion of the company’s dividends through your stock.
However, it can be a lot of work to monitor the market on your own, especially if you are new to trading and investing.
These are some of the top companies that have stock with high dividends that are worth investing in.
Federal Realty Investment Trust
Dividend Yield: 5.3%
This particular company has been extremely steady compared to its competition over the years. Their dividend payouts have been steady for the past 53 years in a row- making them reliable and worth investing in.
Currently, Federal Realty Investment Trust is recovering from the effects of the pandemic. However, they have been showing great signs of improvement. Their history shows that they will succeed in these trying times and continue to be a reliable source of high dividend stocks.
Dividend Yield: 8.0%
Altria is a company that is generating enough free cash flow to completely cover the dividend payouts. Because of this, Wall Street views the high dividend stock as being safe and recommends it to many people, despite the 8% seeming like it would be too good to be true.
Even though Altria is a company that is based on tobacco products, experts in the stock market expect the dividends and potential there to continue increasing over the years.
Dividend Yield: 4.0%
For the past 10 years, this company has been steadily growing its dividends. Technology-based companies are typically great investments, as they are always seeking to improve and have the potential to be around for many years.
They are a safe investment, due to their incredibly reliable dividend yield. Overall, stock in this company would generate some good returns over a long period.
Dividend Yield: 2.7%
During the rise of the pandemic, stock market analysts have noticed the growing trend in meal replacements and other diet strategies. Among them, Medifast is doing extremely well and is expected to rise to over 10% in the next year.
Dividend Yield: 3.1%
The air conditioning parts manufacturer has seen a strong recovery since the start of the pandemic. When the summer heat started rolling in, shares were even up 15%.
You can consider this a reliable dividend, as experts are saying that the payout history is pointing towards further growth. This is due to their quarterly dividend payouts more than doubling since 2015- they were 70 cents a share then, but are returning $1.75 at the moment.
When you decide to invest in stocks with high dividends, you want to look at the history of the company and the DIVCOM information. That way, you can be 100% certain that you are making good financial decisions- and that you are going to be making a steady profit off of those dividends.
Skylar Hammond is a writer for True Trader who specializes in topics such as stock trading, personal finance, and forex. He focuses on helping beginners and experts alike learn more about the market and improve their trading skills.