2 Top Dividend Stocks With Yields Over 5%
While high-flying growth stocks are exciting, it's hard to go wrong in the long run with quality dividend stocks. You're unlikely to snag the next 100-bagger if you're a dividend investor, but you're also unlikely to get burned by sky-high valuations and growth expectations that are detached from reality.
Having said that, all dividend stocks are not created equal. A high dividend yield is far from a guarantee that your results will be favorable. Chasing rich dividend yields, only to have those dividends slashed when times get tough for the underlying companies, is not a path to long-term investing success.
Two dividend stocks that do look like good bets are AT&T (NYSE: T) and International Business Machines (NYSE: IBM). While both companies are facing challenges and elevated debt levels, the stocks deliver dividend yields above 5% that are well covered by the cash flow generated by these businesses.
Source Fool.com
