Sunday, 20 December 2015

High Yield Dividend Stocks are every investors dream

High Yield Dividend Stocks

high yield dividend stocks

If you like to invest in shares you will be on the lookout for high yield dividend stocks! These are every investors dream because they give you better interest than you would achieve from a bank account. When I think about stocks best dividends I think about those that give you a return of at least 4% a year. Previously this would not have been considered great but compared to the poor bank interest rates this is fabulous especially if you have the stock in your stocks and shares ISA and therefore do not have to pay tax on any income generated.

High Yield Dividend Stocks that pay monthly

The thing I love about high yield dividend stocks that pay monthly is the fact that you feel as if you are getting another regular income. Over time you can reinvest these dividend payments and grow this monthly dividend income. This would be great for a retirement nest egg. However there seems to be a limited number of dividend stocks that pay monthly.

High Yield Dividend Stocks List

By now you will be curious to know the high yield dividend stocks list but before you run off and invest your life savings please remember to do your own research. Investing in high yield dividend stocks is like all other forms of investing, it comes with risk and it is hard to find the safest high yielding dividend stocks. The ones below are stocks with best dividends and they are from the USA and UK markets.

General Motors (GM) - currently has a dividend of 4.1%.
AT&T - currently has a dividend yield of 5.8%
BHP Billiton has a high dividend yield of 11.47%
Royal Dutch Shell A and B have returns of over 8.5%
HSBS brings in 6.2% in dividends.

Safest High Yielding Dividend Stocks

So what are the safest high yielding dividend stocks? There are a number of ways to look at this. You can consider safest by meaning that the company will continue to trade and pay dividends for a considerable period of time, or you can look at it from the point of view has the company a history of increasing dividend payments. Personally there is no such thing as a safe yield dividend stock as anything can happen to a company almost overnight.

When picking high yield dividend stocks that I consider to be safe I look for a stock whose share price stays fairly stable as well as one which has a good dividend history. If the company has a stable share price with annual dividend increases in my opinion it is one of the high yield dividend stocks.

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