In the current interest rate environment, where yields on fixed-income investments hover around 5% or higher, income-seeking investors have many alternatives. They either go for fixed, government-backed securities and generate a safe return or potentially go for stocks. The issue with the latter is that with the “risk-free” rate at such high rates, a stock offers a much higher yield to justify taking on the extra risks attached.
Hence, to warrant assuming additional risk with income stocks, targeting those offering higher yields alongside significant growth potential is better. For this article, I have chosen three high-yield dividend stocks that not only feature significant yields of 6% or higher but also have the potential to grow investors’ income and see their share prices appreciate over time.
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