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5 High Dividend Stocks With Earnings That Cover Their Dividends

There are many reasons to like high-yield dividend stocks. If you’re a retiree looking to generate a steady income stream from your portfolio, high-yielders can provide you the cash flow you seek from a much smaller capital base compared to other investment vehicles.

As Louis Navellier has argued, the steady profits generated from their large quarterly or monthly payouts can be reinvested, helping to boost compounded returns.

Having said all of this, if you decide to pursue this investing strategy, keep in mind the importance of being selective. Many stocks sporting a high yield can be best described as yield traps. In other words, stocks with unsustainable dividends that they’ll either have to cut or suspend down the road.

But in the case of these seven high-yield dividend stocks, yield trap risk is minimal. Each one generates more than enough from earnings to maintain (and steadily grow) its rate of payout.

This post appeared first on InvestorPlace.