5 Ultra-High-Yield Dividend Stocks That'll Make You Rich
Making money in the stock market is easy... if you own dividend stocks.
According to a report published by J.P. Morgan Asset Management in 2013, publicly traded companies that initiated and grew their payouts between 1972 and 2012 averaged an annual return of 9.5%. As for their non-dividend-paying peers, average annual gains were a paltry 1.6% over the same 40-year period. Because dividend stocks are almost always profitable and time-tested, they're logical candidates to make investors rich.
Ideally, income seekers want the highest yield possible with the least amount of risk. However, data shows that once yields cross about 4%, yield and risk are tightly correlated. This is to say that ultra-high-yield companies usually prove to be more trouble than they're worth. Since yield is simply a function of payout relative to share price, a failing or struggling operating model can trap income seekers with a high dividend yield.
Source Fool.com
