Forget Blue Chip Dividends, Buy These +9% Yielders Instead

Many investors who are looking for a steady income turn to 'high yield' blue chip dividend stocks, such as Verizon (VZ), AT&T (T) and Shell (RDS-A) (NYSE: RDS-B). While these stocks could provide a small income, many investors don't realize that they could be receiving a much higher yield with only a small risk increase. Shareholders tend to disregard most dividend stocks that yield over 5% because they are under the impression that the risk-reward is too high. However, if the proper research is conducted and the stock is thoroughly analyzed, investors could receive a much higher quarterly dividend income, with only a small increase in risk.
When analyzing high yield dividend stocks, investors should investigate four main points;
Company Health: The company must have good health, which includes profitability, cash flow, liquidity, diversity and leverage. If any financial ratios or other indicators show that any of these points are poor, the stock might be a no go. The best way to find current company health is to look at its most recent earnings report.
Dividend Health: Dividend growth is the main data point that should be analyzed. If the company has many consecutive dividend raises, it usually means good growth. However payout ratio is another
News Check: News reports on the company should be positive. If there are multiple positive analysis reports on the company, it should be a good investment. If there's insider buying, analyst upgrades and... Read more