9 High-Yield Dividend Stocks to Buy on the Dip

The market has experienced a meaningful rotation in recent months thanks to a combination of accelerating economic growth, corporate tax cuts and rising interest rates.

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The market has experienced a meaningful rotation in recent months thanks to a combination of accelerating economic growth, corporate tax cuts and rising interest rates. The Standard & Poor’s 500-stock index has quickly returned more than 7% since Dec. 1, 2017. However, many high-yield dividend stocks have trailed. The Vanguard REIT ETF (VNQ (opens in new tab)) and the Utilities Select Sector SPDR Fund (XLU (opens in new tab)) have actually lost more 6% and 10%, respectively.

Many defensive stocks that pay generous dividends have simply been left in the dust, and several have declined to a point where they could be attractive for long-term income investors.

Take the nine high-yield stocks we’re about to discuss, for instance. Shares of these businesses have all lost between 8% and 15% since the start of December, underperforming the S&P 500 by at least 15 percentage points in roughly two months. However, each company now yields between 3% and 7%, appears to have a timely valuation based on yield, has increased its payout for at least five straight years and possesses a solid Dividend Safety Score – a metric calculated by Simply Safe Dividends to gauge how secure a company’s dividend looks.

In other words, these nine high-yield stocks appear to be priced to buy on this current dip.

Data is as of Jan. 29, 2018. Dividend yields are calculated by annualizing the most recent quarterly payout and dividing by the share price. Companies are listed alphabetically. Click on ticker-symbol links in each slide for current share prices and more.

Brian Bollinger
Contributing Writer, Kiplinger.com

Brian Bollinger is President of Simply Safe Dividends, a company that provides online tools and research designed to help investors generate safe retirement income from dividend stocks without the high fees associated with many other financial products.