We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

How do I Choose the Best High-Yield Dividend Stocks?

By Dana DeCecco
Updated Feb 19, 2024
Our promise to you
WiseGEEK is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGEEK, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

The best high-yield dividend stocks are those of financially sound companies with a history of strong dividend growth. Blue-chip stocks offer the investor stability and a steady income. Many growth stocks offer dividends with the potential for capital gains on the anticipated growth in share value. Exchange-traded funds (ETFs) offer a diversified portfolio by investing in a basket of high-yield dividend stocks.

Dividends are the portion of company earnings paid back to stock owners. Companies not reinvesting profits for growth and expansion normally pay dividends as an incentive for investors. Investors seeking income-producing stocks have multiple choices, depending on the risk tolerance acceptable to the investor. The highest-yielding stocks are not necessarily the best high-yield dividend stocks in which to invest. The highest-yielding stocks might carry a high degree of risk.

Most dividends are paid on a quarterly basis. Some dividends are paid monthly, annually or twice per year. The company's board of directors determines the amount of the dividend and payment frequency. High-yield dividend stocks often outperform traditional investments such as certificates, notes and bonds. Dividend yield is a financial ratio that can be calculated by dividing annual dividend per share by price per share.

Investors can choose between stocks with high dividend yield and high dividend growth rate. A history of strong dividend growth might indicate future company growth and profitability. Online resources are available that list, rate and rank dividend-paying stocks. Some services provide recommendations for particular investment objectives. The quality of online services is subject to the discretion of the investor.

High-yield dividend stocks paying the highest dividends are typically investments carrying the highest risk. The investor should balance income and risk. Risk appetite might be directly proportional to high yield. Safety of investment capital along with reasonable dividend income is available through investments in financially sound blue chip companies. The financial condition of the company should be examined before investing.

Dividend-paying ETFs incorporate significantly different strategies. Some ETFs focus on the highest dividend growth stocks, and others might apply different weighting methods. The investor should apply due diligence before investing in dividend paying ETFs. Historical track records and current yield rates are provided by stock brokers and other online investment resources.

Selecting the best high-yield dividend stocks depends on the objective of the investor. Yield, risk, stability and safety of funds are all factors that one should consider. Online help is provided by discount brokers and investment services. The services of an investment advisor might be the best option.

WiseGEEK is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGEEK, in your inbox

Our latest articles, guides, and more, delivered daily.