High-Yield Picks for Income Investors

Everyone loves high yields. Not everyone, however, is willing to live with what often accompanies them: above-average volatility and sometimes elevated risks to the dividend itself. That’s a lesson many investors are learning in mid-2012, just as others did in 2010 and 2011. And with the memory of 2008 to 2009 still fresh, it’s not hard to see how selling begets more selling, as assumptions grow that something is wrong with the underlying business, even if all the news and numbers say otherwise.

Below I focus on couple of stocks yielding 8 percent and up that are generally unloved by investors right now but that have recently demonstrated themselves to be more than just cheaply priced. It’s crystal clear that traditional copper landlines are going away faster than almost anyone predicted, myself included. Not every communications company, however, is equally exposed to the trend.Shares of Consolidated Communications (CNSL) and Windstream Corp (WIN) have been hammered recently by worries they’ll go the way of Otelco (OTT) and other dividend cutters.

Source: Guru Focus

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