The Best High-Yield 4%+ Stocks

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Dividend high-yield stocks ease your mind and make calculation easy at retirement. Both income-seeking and growth investors can benefit from having some high-yielders in their portfolios. But make no mistake, there’s no free lunch in finance! This is why we pulled out the best stocks showing a yield of 4% and above.

You’ll Learn

  • When we first did this episode over a year ago, interest rates were still very low. The economic environment has changed a lot since and it has impacted the yield of many dividend stocks. But that doesn’t come with any risk.
  • REITs are made to distribute as much as possible to their unitholders. Stag Industrial (STAG) and Crown Castle International (CCI) are good candidates in this sector. Still, investors need to ensure both FFO per share and dividend increase.
  • The Consumer Discretionary sector may face many headwinds this year. However, A&W Royalties (AW.UN.TO) and Canadian Tire Corp (CTC.A.TO) should continue to thrive with their growth vectors and unique brand recognition.
  • T.Rowe Price (TROW) and CME Group (CME) are well-positioned to dominate the financial sector. TROW is a giant showing dividend increases for 36 years and CME is don’t of the best in class for derivative products and offers a special dividend that boosts its yield.
  • On the Canadian side, two insurance companies made the list: Great-West Lifeco (GWO.TO) and SunLife Financial (SLF.TO). They have proven their resiliency during the 2008 financial crisis and both have become solid asset managers with financial planners.
  • In the Utilities sector, two companies are head to head: Brookfield Renewables (BEPC) and Brookfield Infrastructure (BIPC). The two are well-diversified and show a solid track record of dividend growth. Investors need to be patient; renewable energy has been hit hard and might not come back as strong this year either.
  • The Information Technology sector shows Intel (INTC) in its high-yield options. At the time we recorded the episode, Intel was struggling and I pointed it out as being a speculative play. In late January, INTC reported weak earnings that disappointed the market. At this point, an upcoming dividend cut wouldn’t be very surprising.

Audio Length: 00:41:07

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