3 Ultra-High-Yield Dividend Stocks to Buy in February
Though the stock market has been rocketing higher with ease over the past 13 months, let me remind you of a very important statistic. According to a 2013 report from J.P. Morgan Asset Management, companies that initiated and grew their dividend between 1972 and 2012 delivered an average annualized return of 9.5% during this period. In comparison, companies that didn't pay a dividend returned an average of just 1.6% over this same 40-year time frame. In other words, dividend stocks play an important role in wealth creation, whether you realize it or not.
Of course, not all dividend stocks are created equal, and some come chock-full of risk. Since yield is simply a function of payout relative to share price, a failing business could give investors the impression that they're buying into a safe, high-yield stock, when in reality their investment capital is in deep trouble. This is why ultra-high-yield stocks (those with yields of at least 10%, as I'm arbitrarily defining it) are viewed as being especially risky.
But there are three ultra-high-yield dividend stocks that I believe are getting a bad rap on Wall Street and are worth adding to your portfolio in February. Assuming you have the patience to stick with these companies for long periods of time and reinvest your payouts, the following ultra-high-yield stocks should deliver for you.
Source Fool.com
