High dividend stocks in 2017

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Many of the highest paying dividend stocks offer a high yield in excess of 4%, and some even yield 10% or more.
 In today’s era of record-low interest rates, a 4% dividend yield is relatively high. In fact, it is about twice as high as the market’s dividend yield today.

High Dividend Stocks
Source: Simply Safe Dividends

A 4% dividend yield is also a sensible cutoff to use for investors who are funding their retirements primarily with dividend stocks rather than the traditional 4% withdrawal rule.

Regardless, why do some dividend-paying stocks offer much higher yields than others?

As you might have guessed, there are many different possible answers.

In some cases, a high yield reflects a company’s mature status. Since the business has relatively few profitable growth investments it can pursue, it returns most of its cash flow to shareholders in the form of dividends.

Utilities and telecom companies would be good examples.

Other high dividend stocks have unique business structures that require them to distribute most of their cash flow to investors for tax purposes.

Some stocks with high dividends are able to offer generous payouts because they use financial leverage to magnify their profits.

And then there are high yield stocks that have landed on hard times. Unfavorable business conditions have reduced their cash flow to the point where investors no longer believe their dividends are sustainable.

The Highest Dividend Stocks Can Be Risky

The most high dividend stocks are not your basic blue chip corporations like Coca-Cola (KO) and Johnson & Johnson (JNJ).
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Instead, many of them have unique business structures and risks to consider.
On the other hand, a business like Johnson & Johnson can use the free cash flow it generates to pay dividends while still retaining plenty of funds to reinvest in new projects, growing earnings and dividends along the way (
without needing to issue equity or ne



















If access to capital markets becomes restricted or more expensive (e.g. rising interp
est 
rates; a slumping share price), such as what happened 


during the financial crisis, these types of high dividend stocks can suddenly be very vulnerable.

Kinder Morgan (KMI), the largest pipeline operator in the country, is perhaps the most notorious example in recent years.

Top High Dividend Stocks Analyzed


Philip Morris International (PM)


Dividend Yield: 3.6%   Forward P/E Ratio: 24.3  (as of 9/5/17)

Dividend Safety Score: 79   Dividend Growth Score: 17

Sector: Consumer Staples   Industry: Tobacco

Dividend Growth Streak: 9 years

Cisco Systems, Inc. (CSCO)


Dividend Yield: 3.7%    Forward P/E Ratio: 14.6 (as of 9/5/17)

Dividend Safety Score: 83   Dividend Growth Score: 67
Sector: Technology    Industry: Computer Networks
Dividend Growth Streak: 7 years

ExxonMobil (XOM)

Dividend Yield: 4.0%   Forward P/E Ratio: 22.4  (as of 9/5/17)
Dividend Safety Score: 70   Dividend Growth Score: 27
Sector: Energy   Industry: Integrated Oil.

 Pfizer, Inc. (PFE)

Dividend Yield: 3.8%   Forward P/E Ratio: 13.2  (as of 9/5/17)
Dividend Safety Score: 63   Dividend Growth Score: 52
Sector: Medical   Industry: Pharma
Dividend Growth Streak: 7 years

Dominion Energy (D)


Dividend Yield: 3.9%   Forward P/E Ratio: 21.5  (as of 9/5/17)
Dividend Safety Score: 90   Dividend Growth Score: 51
Sector: Utilities   Industry: Electric Power
Dividend Growth Streak: 14 years

Duke Energy Corporation (DUK)

Dividend Yield: 4.1%   Forward P/E Ratio: 19.0  (as of 9/5/17)
Dividend Safety Score: 87   Dividend Growth Score: 41
Sector: Utilities   Industry: Electric Power
Dividend Growth Streak: 13 years.

Target (TGT)

Dividend Yield: 4.4%   Forward P/E Ratio: 12.7  (as of 9/5/17)
Dividend Safety Score: 81   Dividend Growth Score: 45
Sector: Consumer Discretionary   Industry: Discount Retail
Dividend Growth Streak: 49 years.

National Retail Properties (NNN)

Dividend Yield: 4.5%   Forward P/E Ratio: 16.8  (as of 9/5/17)
Dividend Safety Score: 82   Dividend Growth Score: 16
Sector: Real Estate Industry: Retail REIT
Dividend Growth Streak: 28 years.

 National Health Investors, Inc. (NHI)

Dividend Yield: 4.7%   Forward P/E Ratio: 15.3  (as of 9/5/17)
Dividend Safety Score: 80   Dividend Growth Score: 67
Sector: Real Estate   Industry: Healthcare REIT

Verizon Communications Inc. (VZ)

Dividend Yield:4.9%   Forward P/E Ratio: 12.5  (as of 9/5/17)
Dividend Safety Score: 84   Dividend Growth Score: 20
Sector: Utilities   Industry: Diversified Communications Services
Dividend Growth Streak: 10 years












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