High yield dividend paying stocks

[QuarterMillionMan]

It is tantalizing to risk investing small amounts in a stock that pays anywhere from 12% to 22% annual dividend yields (see link). Would you take the risk? I've never heard of Western Assert Mortgage Capital but they pay 22.51%, or Chesapeake Granite Wash Trust paying 22.17%.

http://www.dividend.com/dividend-stocks/high-dividend-yield-stocks.php

[kork13]

Not really, IMO...

Call me a cynic, but any company that's paying THAT high of a dividend most likely isn't investing in itself very well... Alternately, the company could be in such trouble that either the stock has plummeted in value & thus raised the dividend, or investors require that high of a dividend in order to consider investing in the company. None of those possibilities appeal to me.

I wouldn't invest in any company like that with more than a few hundred dollars, and I would call it gambled money at that. So great, you're earning $50/yr on your ultra-risky investment... Now what are you gonna do with the rest of your $300k portfolio?

Personally, I prefer more sedate high dividend-yielding stocks... Utilities, like phone or power companies, for example... Southern Co., or Verizon, or similar. Sure, they're only paying 4%-6% yields, but i'd rather that than risk it all on a fundamentally dangerous company.

[bigdaddybus]

PHK- PIMCO High Income Fund has been a favorite of mine for years.

Pays a 12.05% div yield and it pays out MONTHLY. So it earns 1% on the first of every month for the investment and scottrade reinvests the cash dividend for me quarterly in my Roth IRA.

Currently trading at $12.03 and my cost basis is $11.73 plus dividends. The next time it drops below 11.50, I plan to buy another $2500 of it.

I like dividends alot, my retired parents receive quite a heafty income stream from dividends (BGS 4%, WM 3.7%, VZ 4.23% are some of his favorites)as they pay dividends to them and they are also good long term growth stocks.


I'll take a look at the stocks in the link this weekend, and post up if I feel compelled to buy any.

[bjl584]

Careful. Look at the details on those companies that are paying those huge dividends and you will see more often than not that the stock price has taken a huge hit in recent months. Usually a dividend cut isn't too far behind.

That being said, there is nothing wrong with buying a few high dividend stocks or funds. I own a few myself. But, you need to do your homework. Don't just blindly buy a company solely because it has a high dividend yield.

[feh]

PHK- PIMCO High Income Fund has been a favorite of mine for years.

Be careful with such funds/ETFs. There are severe risks associated with such products; there is no such thing as a free lunch.

[Cassius King]

I've messed around with AGNC in the past. There's some Real Estate/Interest Rate risk, but have held and collected a nice dividend several times.

[KTP]

Dividends are usually not as tax efficient as share buyback. There are few who would say Berkshire has been a bad investment over the past 20 or more years and it pays zero dividends.

[delemag]

silver is artificially lowered now, buy it, wait for china's industrial revolution to boom, and sell sell sell

[GrimJack]

The list you link to is supported by Global X Funds; they do not mention an REIT that I own that pays 7.8% (WSR) - it pays monthly, has a 52 week range of 8%. If my stock does not show up on that list, what else is the list missing. WSR is one of my 'free play' stocks; it is high div/low cap, if it holds up for a year, I will probably put more into it since it is in my IRA. I bought it after I sold half of my 3M (which had become way too large a part of my portfolio).