3 Stocks That Can Keep Paying Big Dividends, 2 That Can't

In times like these, when stocks are characterized with extreme volatility and global financial turmoil has brought uncertainty around, investors rightly prefer high dividend paying stocks. Stocks with a high dividend yield result in a positive return turn to one's stock portfolio by giving a steady income. However, some high dividend stocks could not escape the market correction recently and underperformed the benchmark. I believe some of these stocks are significantly undervalued and offer unusually high dividend yields. Further, such stocks act as an inflation hedge when companies increase their payouts. But, one should be wary of company's ability to keep paying dividends in future. Chimera Investment Corporation (CIM) is currently yielding dividends at 15.77%, with a payout ratio is 1.08. The profitability of the firm includes profit margins of 9.59%, operating margins of 91.67% and a return on equity of 18.34%. The stock has a low volatility, with the... Read more