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Practical Advice from

3 High-Yield Stocks of 14%-Plus: Are They Safe?

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Every now and then, I like to scan the absolute highest of the high-yield stocks to see if there is some undiscovered story hidden away. Most investors know, at this point, that high-yield stocks can be great things. However, a yield that is too high should raise suspicion.

The danger of a high yield that is, in fact, too high is that it may suggest the stock price has fallen dangerously low for a reason. Super-high-yield stocks whose prices have fallen precipitously because of some major problem within the company may herald that the yield is going to be cut back. The company may have liquidity problems.

But I look for these super-high-yield stocks to see if perhaps there is a value play in the mix — if the market has unfairly punished a stock or doesn’t see something I do.

So here’s a look at the three stocks with the highest yields to see if they are safe to invest in. Note that I exclude royalty trusts and shipping companies as these have special circumstances as securities.

Prices and data are from the original InvestorPlace story published on March 6, 2017. Click on ticker-symbol links in each slide for current prices and more.

SEE ALSO FROM KIPLINGER: 12 Dividend Aristocrats for Every Month of the Year

This slide show is from InvestorPlace, not the Kiplinger editorial staff.

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