When it comes to dividend stocks, there is often a trade-off between yield and safety. In many cases, the higher the yield, the less secure that payment tends to be, and vice-versa. Intuitively, this makes sense. If a company is only paying out 10% of its earnings in the form a dividend, a whole lot has to go wrong in order for that payment to be in jeopardy.
On the other end of the spectrum, if a high-yield stock is paying out 100% of its earnings as dividends, even a small hiccup in the business can put the dividend in danger of being reduced.
Occasionally, investors can find high dividend stocks that offer both high income today, and a strong underlying business model. The three stocks highlighted here have 5%+ yields along with sustainable payouts.Continue reading