High-Yielding Dividends: 3 Stocks to Consider

When it comes to income-oriented investing, high-dividend stocks can be an attractive option. These stocks offer substantial passive income, making them appealing to retirees and long-term investors. However, not all high-dividend stocks are safe bets. It's crucial to evaluate the company's financial health, dividend safety, and business model before investing. This article explores three dividend stocks offering yields up to 4.9% and examines their potential for income generation and stability.



1. W.P. Carey (WPC) - Real Estate - Diversified REITs
- Dividend Yield: 6.0%
- Dividend Safety Score: Safe
- Uninterrupted Dividend Streak: 0 years
W.P. Carey is a diversified REIT that owns over 1,300 single-tenant properties, primarily in industrial, warehouse, retail, and self-storage markets. Despite a recent adjustment to account for lost cash flow, W.P. Carey has historically paid higher dividends each year since going public in 1998. The REIT's focus on operationally essential properties and its diverse portfolio of tenants make it an attractive option for income investors. With a BBB+ credit rating and a payout ratio targeted around 75%, W.P. Carey has the financial strength to support its dividend.

2. AT&T (T) - Communications - Wireless and Internet Services
- Dividend Yield: 6.1%
- Dividend Safety Score: Borderline Safe
- Uninterrupted Dividend Streak: 1 year
AT&T has faced challenges in recent years, including a dividend cut in 2021. However, the company's focus on core wireless and internet services, which generate predictable cash flows, has improved its prospects. With a BBB rating and a payout ratio near 50%, AT&T has taken steps to strengthen its balance sheet and protect its dividend. As AT&T continues to return to its communication roots and no longer focuses on empire-building, it may once again become an attractive choice for income investors.

3. Dominion Energy (D) - Utilities - Electric Utilities
- Dividend Yield: 5.0%
- Dividend Safety Score: Safe
- Uninterrupted Dividend Streak: 2 years
Dominion Energy and its predecessors have delivered diversified forms of energy to customers for over a century. The company's regulated utility business ensures steady income, making it a reliable choice for dividend investors. With a Safe Dividend Safety Score and a payout ratio of 50%, Dominion Energy has demonstrated a commitment to maintaining its dividend during economic downturns. The company's focus on diversifying its operations and maintaining a strong balance sheet has enhanced its earnings stability and resilience.



When evaluating high-dividend stocks, it's essential to consider the payout ratio and debt levels relative to industry peers. The payout ratio indicates the percentage of earnings distributed as dividends, while debt levels provide insight into a company's financial health. By comparing these metrics, investors can make more informed decisions about the safety and sustainability of a company's dividend.

In conclusion, high-dividend stocks can be an excellent source of passive income for retirees and long-term investors. However, it's crucial to evaluate the company's financial health, dividend safety, and business model before investing. The three stocks discussed in this article offer yields up to 4.9% and have demonstrated potential for income generation and stability. By considering a diversified portfolio of high-dividend stocks, investors can construct a solid foundation for long-term income growth.