3 High-Yield Dividend Stocks Begging to Be Bought
Although growth stocks have dominated the investment landscape in 2020, it's dividend stocks that have a history of outperforming.
Back in 2013, Bank of America/Merrill Lynch released a report examining the performance of publicly traded companies that initiated and grew their dividend between 1972 and 2012. Bank of America then compared this to the performance of non-dividend-paying stocks over the same period. The comparison was night and day, with dividend stocks gaining an average 9.5% annually over this 40-year stretch, and non-dividend stocks gaining only 1.6%, on average over the same time frame.
The biggest issue with dividend investing is that we want to be greedy. We want the highest yield possible with the least risk imaginable. Unfortunately, yield and risk are often correlated, which means high-yield stocks (those with yields north of 4%) often come with risks that aren't always visible until you dig into a company's income statements and operating model.
Source Fool.com
