The market has enjoyed strong gains over the past seven weeks, but of course not every stock has participated. Some names have floundered, but that doesn’t mean they’re a lost cause. Seven high-yield dividend names are looking very attractive right now. Their 10-year yield hovers near the 2.6% area, while the term structure on the long end is rather flat. You’ll read more on them below.

You should always consider stocks that pay a strong dividend yield. It’s like you’re getting paid to wait for that stock to start performing. In many cases, these stocks become “accidental” high-yield names due to a corporate decision, earnings report or management change. (There is always the concern that management will slice the dividend in order to retain more earnings, and that decision might dissuade big money from coming on board. But don’t let it dissuade you.)

How to find high-yield dividend names

Do your homework and ask questions. Is the high yield sustainable? Do they have strong cash flow? Are they in a high-risk business where an economic downturn could jeopardize the yield?

A stock that gets thrown overboard during a market correction or bearish activity can protect itself with a strong dividend payout. I have identified seven high-quality companies that fit the bill. They are all familiar names, and they have all grown their dividend for years. Now, their yields have become very attractive.

As of February 8, these stocks had yields above 4.6%:

Macy’s (NYSE: M)
AT&T (NYSE: T)
Qualcomm (Nasdaq: QCOM)
Philip Morris International (NYSE: PM)
Altria (NYSE: MO)
Exxon Mobil (NYSE: XOM)
IBM (NYSE: IBM)

For long-term investing, high-yield dividend names are the way to go. It’s not always about finding the next hot growth name. An investor needs to have balance in their portfolio, and a stock that returns cash to you is a great way to create another income stream.