Top 3 High-Yield Stocks For 2021 (7% Yields)

A lot of high-quality dividend growth stocks don't offer super high yields. Instead, it's all about letting those dividend increases slowly compound over time, which eventually turns your passive income into a runaway snowball of dividend income you can't reasonably spend. But what if you don't have a decade or two to let the compounding process play out? What if you're at retirement age, or close to it, and need income now? Or, what if you're a younger investor who wants to amplify the overall yield of your portfolio?

I'm going to tell you about three dividend growth stocks that offer big, strong dividends.

They're big because we're talking about yields that are more than four times higher than the S&P 500's 1.5% yield. And they're strong because they're backed by the necessary cash flows. The last thing you'd want is to chase after a high yield and then see that dividend cut and the investment value drop like a rock. Also, these dividends are still growing. Not as fast as many lower-yielding stocks, sure.

The first stock I want to bring to your attention is AT&T Inc. - stock ticker T. If that kind of yield doesn't get the bills paid, you might have too many bills. AT&T is a Dividend Aristocrat with 36 consecutive years of dividend raises. The 10-year dividend growth rate is only 2.2%, so there's not a ton of growth here. But that's the trade-off with a 7% yield.

The company took in over $27 billion in free cash flow last year, and the dividend only sucked up 55% of it. So this is a stock where you can count on that big dividend to keep coming.

The next stock is Enbridge Inc. - stock ticker ENB. This Canadian energy company moves oil and gas through its pipelines, but it also pipelines big dividends (7% yield!) straight into its shareholders' brokerage accounts.

Enbridge has increased its dividend for 25 consecutive years. And with a 10-year dividend growth rate of 11.3%. This is a pretty compelling combination of yield and growth.

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Disclaimer: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose ...

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