High yield dividend stocks pay dividends well above the market average, which can fund retirement spending, but a very high yield can also signal risk. Before buying one, check the payout ratio (can earnings cover the dividend?), dividend growth history, the P/E ratio, company size, and recent earnings reports. In Excel, MarketXLS returns these with formulas such as =DividendYield("VOD"), =PayoutRatio("VOD"), and =PERatio("VOD"). The stock list below is from January 2019 and is not current; some of these companies have since cut dividends, merged, or changed tickers.
When looking for High yield Stocks there are some considerations we should make. Small and Mid-cap companies tend to provide high dividend yields but come with higher risk and volatility. Earning reports provide valuable insight into future plans of company and the dividend payout amount. While the P/E ratio is a common investor indicator, and should be followed when choosing a high yield dividend security. Lastly, dividend growth and the payout ratio are import factors to ensure the dividends will continue to grow, and that the company is not paying out too much of its capital as dividends. Below were 5 of the highest yielding large cap dividend stocks as of January 2019.
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China petroleum & Chemical (SNP)
- China Petroleum & Chemical Corporation, an energy and chemical company, engages in the oil and gas, and chemical operations and businesses in the People’s Republic of China. The company explores and develops oil fields; produces crude oil and natural gas; processes and purifies crude oil; and manufactures and sells petroleum products.
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CenturyLink INC (CTL)
- CenturyLink, Inc. provides various communications services to residential, business, wholesale, and governmental customers primarily in the United States. The company offers virtual private network data network services, Ethernet services, Internet protocol services.
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Vodafone Group PLC (VOD)
- Vodafone Group Plc engages in telecommunication services in Europe, Africa, the Middle East, and the Asia Pacific. The company’s consumer products include mobile services, such as call, text, and data; broadband; television offerings and voice;
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Akzo Nobel NV (AKZOY)
- Akzo Nobel N.V. operates as a paints and coatings company in the Netherlands and internationally. It provides decorative paints, including paints, lacquers, and varnishes; mixing machines, color concepts, and training courses for the building and renovation industry; and specialty coatings for metal, wood, and other building materials.
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Vistra Energy Corp (DYNC)
- Vistra Energy Corp., through its subsidiaries, engages in the integrated power business in Texas. The Wholesale Generation segment engages in the electricity generation, wholesale energy sales and purchases, commodity risk management, fuel production, and fuel logistics management activities** Disclaimer: I do not hold any investments in the companies listed in this article. This article is not intended as investment advice, and I do not claim to be a licensed advisor. The information contained in this Article is purely research intended, and not to be considered investment advice. **
