3 Safe Dividend Stocks Yielding Over 7%
The landscape is changing for dividend stocks. With interest rates rising rapidly, Treasury bonds are now paying investors a meaningful amount of money for the first time in years. With 10-year Treasury notes yielding about 4%, income investors -- who had few places aside from dividend stocks to turn for yield -- could buy these bonds for a "risk-free" 4% return on investment.
This can reduce the appeal of stocks yielding 3% to 4%, a level that was viewed as an ample dividend yield over the past decade. However, stocks yielding higher amounts continue to look appealing to dividend investors.
High yields can often result from a stock price falling rapidly and signal that the company may be unable to pay its dividend going forward. However, there are no falling knives on this list: All three stocks yield 7% or more, have been increasing their dividend payouts, and have payouts that look safe from a dividend payout ratio perspective.
Source Fool.com
