Ready to get paid while you hold? Dividend stocks can supply a steady cash stream and temper market swings—but the fattest yields aren’t always the safest.

Table of Contents

0. Why Focus on Dividend Yield?
1. Pros of Dividend Stocks
2. Cons of Dividend Stocks
3. Top 10 High-Yield US Dividend Stocks
4. How to Judge Dividend Safety
5. Best Money-Making Sites

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0. Why Focus on Dividend Yield?

A stock’s dividend yield is its annual cash payout divided by the current share price. The higher the yield, the more income you receive—but extremely high payouts can flash warning lights if profits can’t cover future checks.

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1. Pros of Dividend Stocks

• Regular Income: Quarterly (or monthly) deposits hit your account without selling shares.
• Total-Return Boost: Reinvested dividends historically fueled ~40 % of long-term equity gains.
• Lower Volatility: Mature, cash-rich businesses often swing less than non-payers.
• Inflation Edge: Growing dividends can offset rising living costs.

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2. Cons of Dividend Stocks

• Yield Traps: Ultra-high yields may signal trouble—cuts can hammer share prices.
• Slower Growth: Firms that return most cash may reinvest less for expansion.
• Tax Drag: Dividends are taxable the year they’re paid (unless held in tax-advantaged accounts).
• Sector Clumping: Many high yielders sit in REITs, energy partnerships, and mature industrials—limiting diversification.

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3. Top 10 High-Yield US Dividend Stocks

Rank	Company (Ticker)	Forward Yield*
1	AGNC Investment Corp. (AGNC) – mortgage REIT	16.35 %
2	Two Harbors Investment Corp. (TWO) – mortgage REIT	15.32 %
3	Global Net Lease Inc. (GNL) – diversified REIT	13.43 %
4	AG Mortgage Investment Trust (MITT) – mortgage REIT	11.63 %
5	Sunrise Realty Trust Inc. (SUNS) – specialty finance REIT	11.15 %
6	Blackstone Mortgage Trust (BXMT) – commercial mortgages	10.87 %
7	Alliance Resource Partners LP (ARLP) – coal & minerals MLP	10.60 %
8	Dow Inc. (DOW) – diversified chemicals	9.74 %
9	Resources Connection Inc. (RGP) – consulting services	9.16 %
10	LyondellBasell Industries N.V. (LYB) – petrochemicals	9.06 %

*Yields current as of May 22 2025.

Quick Take: Mortgage REITs and energy/commodity names dominate this list. High yields often coincide with high volatility—scrutinize payout coverage and debt before diving in.

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4. How to Judge Dividend Safety

1. Payout Ratio: For most companies, a payout under 75 % of earnings (REITs/MLPs: under 90 % of cash flow) is healthier.
2. Free-Cash-Flow Trend: Growing or stable free cash flow supports future hikes.
3. Balance Sheet: Excessive leverage + high dividends can spell disaster in downturns.
4. Track Record: Long streaks of stable or rising dividends indicate commitment.
5. Industry Outlook: Secular decline (e.g., coal, tobacco) or cyclical swings raise cut risk.

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5. Best Money-Making Sites

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Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always conduct your own research or consult a licensed professional before investing.