Buy These Yield-Boosting Dividend Stocks

There is an old adage that applies to all factors of life which says "there is no such thing as a free lunch", and that holds true for investing as well. While there are plenty of high dividend stocks to pick from, not all of these stocks are worth considering. After all, there is no reason to get excited about a 5% dividend if the underlying stock is a risky one. Dividends are great, and high dividends are even better, but the reality is that high dividends can easily be erased by poor stock performance, so it is crucial not to get seduced simply by a high dividend yield.

This week I am going to identify five great high-dividend stocks. Each of the following stocks has yields of at least 3% with solid underlying businesses: Telecom giant AT&T (T) is a dividend machine, currently paying an annual yield of 5.2%. U.K. based drug manufacturer GlaxoSmithKline plc (GSK) currently has a dividend yield of 4.8%. Defense contractor Lockheed Martin (LMT) has enjoyed strong gains over the last year. Amusement-park operator Six Flags Entertainment (SIX) has been a very stable stock over the years, and in addition to steady stock performance, the company also pays out a hefty dividend. Utilities are known for big dividends, and diversified utility provider Ameren Corp. (AEE) is no exception.

Source: Market Intelligence Center

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