Hedge Funds Love These High-Yield Stocks

When investors purchase shares of dividend-yielding stocks, they are given the opportunity to receive the dividends or have them reinvested. Simply purchase a stock and you can watch your portfolio slowly accumulate even more shares over the course of several years. Reinvesting dividends is often considered a good move as it capitalizes off compounded interest, but as with most investment strategies, there's a potential downside to consider.

Wondering which high yield dividend stocks have caught Wall Street's attention? To create this list, we started with a universe of about 180 high yield dividend stocks. To control the quality of the list, we only focused on the names that have dividend payout ratios below 50% (i.e., less than 50% of their profits are paid out as dividends) Next, we collected data on institutional money flows, and identified the names that have seen a significant rise in big money buying during the current quarter. Institutional investors seem to think these high dividend yields are sustainable -- do you?

Source: Motley Fool

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