As interest rates have climbed, stocks have dropped. And the best high-yield dividend stocks are now paying higher yields for investors. If you’re looking to increase your passive income, check out the list of stocks below.

These are some of the highest paying dividend stocks in the market. However, they also come with different risks. I’ve listed companies across various sectors. On top of that, if the markets continue to drop further, you’ll be able to lock in even better deals.

Without further ado, let’s dive into the list of dividend stocks…

High-Yield Dividend Stocks

 

Company Ticker Sector Dividend Yield
Phillips 66 PSX Energy 4.9%
Realty Income O Real Estate 5.1%
3M MMM Industrials 5.3%
Newmont NEM Basic Materials 5.3%
Boston Properties BXP REIT – Office 5.3%
Best Buy BBY Consumer Cyclical 5.4%
IBM IBM Technology 5.5%
Prudential Financial PRU Financial 5.6%
Intel INTC Technology 5.6%
Iron Mountain IRM Real Estate 5.7%
Philip Morris International PM Consumer Defensive 5.9%
Walgreen Boots Alliance WBA Health Care 6.0%
V.F. Corp VFC Consumer Cyclical 6.4%
Dow DOW Basic Materials 6.4%
LyondellBasell Industries LYB Basic Materials 6.5%
Verizon VZ Communication Services 6.7%
Newell Brands NWL Consumer Defensive 6.7%
Kinder Morgan KMI Energy 6.8%
AT&T T Communication Services 7.2%
Enbridge ENB Energy 7.2%
ONEOK OKE Energy 7.4%
British American Tobacco BTI Consumer Defensive 7.9%
Simon Property Group SPG Real Estate 7.9%
Devon Energy DVN Energy 8.0%
Altria MO Consumer Defensive 9.1%

 

Dividends During a Downturn

As the economy continues to falter, having extra income can help weather the storm. The companies above have a good history of rewarding investors. However, they’re not exempt from the tough times.

There’s always the chance of a dividend cut. Investors have pushed down the stock prices above. And that’s what helps make them high-yield dividend stocks.

To help lower risk, you can buy a basket of these dividend stocks. You can add stocks to your portfolio that operate in different industries and from around the world. For example, if one position is struggling, others can help make up the losses. And generally, it’s best not to put all your eggs in one basket. There are many other investment opportunities to consider.

If the economy continues to contract, we’ll likely see prices come down even more and higher dividend yields ahead. Although, fear is already high and now is likely a better time to buy. Trying to time the market is a fools game and research shows a systematic approach tends to work best. On top of that, if you don’t need the cash from these investments, you can reinvest the income. This is a great way to compound your returns…

Reinvesting With High-Yield Dividend Stocks

If you pick up some of these stocks, you should see a solid stream of income over the next few years. You can then put that back to work and as a result, you can collect even more income down the road. For example, if you receive an extra $10,000 this year and reinvest it at a 6% yield, you can collect an extra $600 in the following year.

Compounding your returns is a powerful concept when it comes to investing. To see how this works, checkout our free investment calculator. And for another hands on look at reinvesting, check out this free dividend reinvestment calculator.

Investing Insight From Experts

The high-yield dividend stocks above are a great place to start your investment research. However, there are thousands of different investment opportunities. And the best opportunities come and go with the markets always moving.

If you’re looking for more insight and opportunities, sign up for one of the best investment newsletters. That’s a great way to stay up-to-date with market trends. You’ll also find some of the best investing tips and tricks from market experts. Here at Investment U, we strive to deliver the best investment research and ideas…