Earn a Safe 6.5% Yield from This Top Dividend Stock

Most high-yield stocks are not known for their dividend safety, which is why this 6.5% yielder is special. The stock is based on a rock-solid business. And despite its generous payouts, its dividends are more than safe. Let me guess: you are likely wondering how on Earth an energy company can pay safe dividends. Didn’t a whole bunch of them cut their payout not that long ago?

I’m looking at Spectra Energy Partners, LP (NYSE:SEP). Well, while the partnership operates in the energy sector, its business doesn’t really have much exposure to commodity prices. That’s why instead of cutting its payout, Spectra Energy stock was actually raising its distributions during the downturn in oil and gas prices. Since Spectra Energy’s initial public offering (IPO) in June 2007, it has been raising its payout every single quarter. That’s 39 consecutive dividend hikes in just over 10 years!

Source: Income Investors

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