Buy High-Yield Dividend Stocks – Invest in the Best High-Yield Dividend Stocks Today!
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Although many companies have since cut or suspended dividend payments since the pandemic began, there are still plenty of high-yield stocks in the market. This will allow you to earn income passively and perhaps even reinvest your dividend payments into other assets.
In this guide, we analyze the best high-yield dividend stocks in the market and which brokers to consider when completing your purchase.
Table of Contents
In the section below you will learn how to buy the best high-yield dividend stocks in the market. This 5-step walkthrough explains the required steps with eToro – which allows you to buy high-yield dividend stocks at 0% commission.
The high-yield dividend stocks that you have just bought can now be viewed in your eToro portfolio.
67% of retail investor accounts lose money when trading CFDs with this provider.
There are many stocks that pay dividends, albeit, the yield on offer can and will vary by some distance. In addition to the specific yield, you also need to consider the share price action of the respective stock.
All in all, we found that the best high-yield dividend stocks in the market right now are those listed below.
You can buy all of the above high-yield dividend stocks at eToro without needing to pay a cent in commission.
If you still haven’t chosen a broker to buy high-yield dividend stocks, a list of the best investment platforms in the market can be found below.
You will find full and detailed reviews of the above dividend stock brokers further down on this page.
In a nutshell, high-yield dividend stocks are those that pay a higher rate of return than the market average. And as such, in order to determine whether or not your chosen stocks are offering an attractive yield, you need to assess what the average is for the specific market that the company operates in.
In some cases, you might even find stocks paying a dividend yield of over 10%. These stocks should, however, be viewed with caution – as this is a significant amount of cash for a company to be distributed to shareholders. In other words, if your chosen stocks are paying a dividend yield that is too high, this is unlikely to be stable over the long run.
If you’re searching for the best high-yield dividend stocks to buy right now – you might consider the companies listed below. Each stock – at the time of writing, is offering an attractive dividend yield of at least 4% – which is far and beyond the S&P 500 average.
Oil and gas giant Exxon Mobil is arguably the best high-yield dividend stock to add to your portfolio. At the time of writing, the NYSE-listed stock is offering a running yield of 5.55% – which is one of the best dividend payouts in the market right now. Most importantly, the dividend policy of Exxon Mobil has not only remained stable for many years, but the size of its payment has gradually increased over time.
For example, the firm averaged a dividend of $0.77 in 2017 and $0.82 in 2018. Between 2019 and 2020, its dividend payment increased to $0.87 and its most recent distribution stood at $0.88. Sure, its most recent increase was smaller in comparison to other years. But, in the current economic climate, the fact that Exxon Mobil has continued to increase its payout is enough to suggest that it will likely remain a top dividend stock for many years to come.
In terms of its stock price action, Exxon Mobil has enjoyed a great recovery since its COVID-19 incurred losses from 2020. At the start of 2021, the stocks were trading at just over $40. Moving into the final month of the year, the stocks have since increased to $63-ish. This represents year-to-date returns of over 52%. Add this to a dividend yield of over 5% and you’ve got yourself a highly attractive long-term stock.
67% of retail investor accounts lose money when trading CFDs with this provider.
British American Tobacco is one of the world’s largest cigarette markers – with major brands including Pall Mall, Lucky Strike, Rothmans, and Dunhill. The firm has a dual listing across the London Stock Exchange and NYSE and on the latter – this translates into a market capitalization of over $78 billion.
Crucially, if you were to own British American Tobacco shares right now, you would be looking at one of the best high-yield dividend stocks in the market at over 8%. With that said, it is important to note that the tobacco giant has seen its stock price stagnant in recent years. For instance, from the 12 months prior to writing this guide, British American Tobacco stocks are down by just over 3.3%.
In comparison, Imperial Tobacco Group – which is also offering an attractive running yield of over 8%, has seen its shares grow by 7% over the past year. Nevertheless, British American Tobacco still stands out as a superb long-term stock to hold, especially when you look at the sheer size of its free cash flows.
Plus, its dominant industry share and continued diversification into emerging markets should see British American Tobacco regain its former glory in the coming years.
67% of retail investor accounts lose money when trading CFDs with this provider.
Next up in our list of the best high-yield dividend stocks is AT&T. This telecommunication giant has had a somewhat bumpy ride on the NYSE in recent years. Over the past five years, for example, the stocks are down by over 37%. In response, management at AT&T continues to push its aggressive dividend policy.
At the time of writing, this stands at a huge running yield of 8.50%. It is important to stress that AT&T has actually remained one of the best dividend payers for a long time now. In fact, the firm has both paid and increased the size of its dividends for 37 consecutive years. As such, it firmly sits within the remit of a Dividend Aristocrat.
In terms of where the stocks are heading in the medium-to-long term, much of the focus at present is on its rollout of 5g infrastructure across the US. In the long-term term, this is arguably the way to go, albeit, AT&T is taking on a lot of debt to meet these objectives. But, if the firm is successful in this emerging market, then at current prices, it could be argued that AT&T represents a good buy.
67% of retail investor accounts lose money when trading CFDs with this provider.
AbbVie Inc is an offshoot of Abbott Laboratories that was founded in 2013. The firm specializes in biopharmaceuticals across a number of treatment products. With a market capitalization of over $200 billion, this solid stock offers the perfect combination between steady growth and consistent dividends.
Regarding the latter, this dividend stock is offering a running yield of 4.75% based on current prices. The stocks have also grown by just over 13% over the past 12 months. Although this is less than the 20% that the NYSE Composite Index has grown by over the same period, AbbVie is up 96% compared to five years ago.
In comparison, the NYSE has grown by 56%. As such, over the longer term, this high-yield dividend stock continues to outperform the market. Furthermore, when you consider market uncertainties surrounding the pandemic, holding a robust pharmaceutical stock like AbbVie can offer added protection against a potential recession.
67% of retail investor accounts lose money when trading CFDs with this provider.
Enterprise Products Partners is a US-based oil and gas pipeline firm that was first founded in 1968. Listed on the NYSE, we like this stock for its solid and dependable dividend policy. Not only has Enterprise Products Partners continued to distribute a dividend for more than two decades, but payout increases have been consistent.
We like the fact that Enterprise Products Partners still managed to pay a dividend in 2020 – even when the wider oil and gas industry went on a virtual standstill as per COVID-related restrictions. At the time of writing, this dividend stock is offering a huge running yield of over 8%. Plus, the stocks have performed relatively nicely over the past 12 months, with gains of just over 9%.
67% of retail investor accounts lose money when trading CFDs with this provider.
Before you go ahead and start adding high-yield dividend stocks to your portfolio, you need to spend time researching each prospective company. After all, you should never buy a stock just because it is currently offering an attractive dividend yield.
On the contrary, there are plenty of other metrics that need to be considered – which we explain in more detail in the sections below.
The first to look at is the running yield currently being offered by the stock.
This is especially the case with the likes of AT&T, which has seen its stock price suffer in recent years.
To determine whether or not your chosen stock is offering a high yield, you first need to assess what the current benchmark is. As we noted earlier, the average dividend yield for stocks listed on the S&P 500 is in and around the 2% mark. In theory, the means that any stock offering a dividend above 2% might be considered attractive.
However, the S&P 500 is too broad to use as a sentiment benchmark in this respect. Instead, it makes more sense to look at the average for the specific sector that the company operates in. For example, you will notice that oil and gas companies generally pay a much higher dividend than other companies in this space. This is often the case with tobacco firms, too.
Avoid making the mistake of looking at the current dividend yield only when choosing suitable stocks for your portfolio. Instead, take a step back and assess how consistent the company has been with its dividend distribution policy over the past few years or in some cases – decades.
For example, there are plenty of Dividend Aristocrats in the market. These are companies that have increased the size of their dividend payment for no less than 25 consecutive years. Dividend Kings take things to the next level, as this process has repeated for at least 50 years. Ultimately, the longer that your chosen stock has been paying a high dividend yield, the better.
When you find high-yield dividend stocks that are paying in excess of 8%, you need to evaluate how sustainable this is in the long term.
However, if a company doesn’t have a robust balance sheet with excess cash flow, then a high dividend policy should be viewed with skepticism.
The biggest mistake that newbies make when buying dividend stocks is to focus solely on the yield and not the actual performance of the share price.
Although returns might be more modest than those offering a high yield, this is a more sustainable way to invest in the stock markets.
When investing in the best high-yield dividend stocks, it goes without saying that you will want to maximize your potential returns.
As such, you need to ensure that you choose wisely when selecting a suitable stockbroker. Not only does the broker need to offer competitive fees, but a user-friendly platform that ideally supports fractional investments.
The best online brokers to buy high-yield dividend stocks can be found in the sections below.
eToro was launched in 2007 and is now one of the world’s most popular brokerage sites with over 20 million active users. The platform hosts thousands of stocks across 17 US and foreign exchanges. This gives you ample opportunity to build a highly diversified portfolio of high-yield dividend stocks. When you buy and sell stocks at eToro, you can do so without paying any trading commissions. We also like the fact that you can invest from just $50 via the fractional stock feature.
As soon as your chosen company makes a dividend payment, it will be redirected to your eToro brokerage account. You can then reinvest the dividends into other stocks or choose to withdraw the money out. You can also invest in high-yield dividend stock ETFs on this platform from just $50. This means that you will be investing in dozens or even hundreds of companies that offer an attractive and consistent dividend policy. Alternatively, you might also consider the eToro Copy Trading tool.
As the name implies, this allows you to ‘copy’ an existing eToro trader that has a superb track record of buying and selling assets with the broker. Anything that your chosen trader invests in will ultimately be mirrored in your own account. You can open an account at eToro in under five minutes and the minimum deposit to get started is just $50. You can fund your account with an e-wallet, bank account transfer, or debit/credit card. eToro is regulated by several top-tier financial bodies – including the SEC and FCA.
Pros
Cons
67% of retail investor accounts lose money when trading CFDs with this provider.
Webull is another good option when it comes to buying high-yield dividend stocks from the comfort of your home. You can open an account without needing to meet a minimum deposit threshold, which is great for testing the waters. Deposits and withdrawals are possible through ACH and bank wires.
Once you have chosen which high-yield dividend stocks you want to buy, Webull allows you to invest at 0% commission. The broker also supports fractional stocks, so you can invest just a few dollars into your chosen markets. Webull also allows you to trade crypto, ETFs, and stock options – all of which are commission-free. You can use Webull online or via its native mobile app.
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at eToro, #1 Online Broker
67% of retail investor accounts lose money when trading CFDs with this provider.
If you’re looking to buy a large number of high-yield dividend stocks as a means to diversify, SoFi could be a good option. The platform supports fractional investments from just $5 per stock. As such, a mere deposit of $100 would effectively allow you to buy 20 different stocks. Once you receive a dividend from your chosen stocks, you can then reinvest it back into the markets with ease.
Best of all, this FinTech platform also offers 0% commissions. This is the case across both stocks and ETFs. Other markets offered include cryptocurrencies and even IPOs. SoFi does not require you to meet a minimum deposit amount to get started. Plus, the platform also offers alternative financial services such as personal loans and credit cards.
Pros
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at eToro, #1 Online Broker
67% of retail investor accounts lose money when trading CFDs with this provider.
If you’re the kind of investor that wants access to both stocks and research tools via a single platform – Zacks Trade is worth a look. This provider offers plenty of real-time data fees and research reports, alongside market insights from the likes of Morningstar and Benzinga. You can also access technical analysis tools to help you assess whether a dividend stock is worth buying.
When it comes to supported markets, Zacks Trade offers thousands of shares from the NYSE and NASDAQ. Through its partnership with Interactive Brokers, Zacks Trade can also facilitate stock purchases from international markets. The fees to buy US-listed high-yield dividend stocks amount to just $0.01 per – at a minimum of $1.
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at eToro, #1 Online Broker
67% of retail investor accounts lose money when trading CFDs with this provider.
If you’re a long-term investor that is looking for a broker that offers dividend reinvestment plans (DRIPs), look no further than E*TRADE. This popular broker allows you to automatically reinvest any dividends that you receive back into the same stock. In doing so, you will continuously build your position with the respective dividend stock over the course of time.
All US-listed stocks supported by E*TRADE – which covers thousands of companies, can be purchased without any commissions attached to the trade. The broker also supports a variety of retirement accounts – so you can buy high-yield dividend stocks in a tax-efficient manner. If you’re also interested in adding some funds to your portfolio, E*TRADE has you covered.
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at eToro, #1 Online Broker
67% of retail investor accounts lose money when trading CFDs with this provider.
Another low-cost broker to consider when buying high-yield dividend stocks is Ally Invest. This popular brokerage app allows you to buy and sell stocks at 0% commission. You’ll have access to thousands of stocks at this broker, all of which can be purchased at just a few clicks via the app. Even if you are a stock market newbie, you should have no issues navigating your way around this broker.
There is no minimum deposit to get started and you can fund your account with a bank wire, ACH, and digital check. If you already have an account with Ally Bank with a positive balance, you can instantly transfer funds over to Ally Invest. Both self-directed and retirement accounts are offered by the broker and dividends can be reinvested with ease.
Pros
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at eToro, #1 Online Broker
67% of retail investor accounts lose money when trading CFDs with this provider.
Robinhood is one of the most popular online brokers in the US – with the platform now home to millions of casual investors. You can buy, sell, and trade stocks at 0% commission, as well as avoid paying any fees on cryptocurrencies, ETFs, and options. There is no minimum deposit amount to get started, and free accounts permit instant funding up to $1,000.
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at eToro, #1 Online Broker
67% of retail investor accounts lose money when trading CFDs with this provider.
Interactive Brokers is one of the most recognized stock brokerage sites not only in the US – but globally. The platform offers a significant number of markets that include everything from high-yield dividend stocks and futures to mutual funds and ETFs. In fact, Interactive Brokers really stands out when it comes to buying stocks located overseas.
This is because the platform gives you access to over 135 markets in 33 nations around the world. This covers the US, Europe, Asia, and more. Fees will vary depending on your chosen market unless you are investing in US-listed stocks – which can be bought at 0% commission. Perhaps the main downside for newbies is that Interactive Brokers is arguably more suited to experienced investors.
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at eToro, #1 Online Broker
67% of retail investor accounts lose money when trading CFDs with this provider.
If you’re prepared to invest at least $20,000, then you might want to consider Merrill Edge. This is because the top-rated brokerage offers personalized investment advice. This means that you will have direct contact with a qualified financial advisor that will suggest investments based on your financial goals and tolerance for risk.
If a $20,000 investment is too much for you, Merrill Edge also offers self-directed accounts that are more than sufficient for newbies. This is because there is no minimum deposit requirement and you can buy and sell US-listed stocks at 0% commission. With that said, fractional shares are only supported when you reinvest dividend payments – so do bear this in mind.
Pros
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at eToro, #1 Online Broker
67% of retail investor accounts lose money when trading CFDs with this provider.
Last but certainly not least is Fidelity. This online broker has a great reputation in the financial services field and offers thousands of investment products across a range of asset classes. This includes over 7,000 equities, so you can easily build a diversified basket of high-yield dividend stocks. If your chosen stocks are US-based, no commissions apply.
Unlike the previously discussed Merrill Edge, Fidelity does support fractional shares. In fact, its Stock Slice tool permits share purchases from just $1 per trade. Fidelity is also a good option if you seek access to IPOs. This popular broker offers plenty of account types to choose from – including retirement plans. News and research tools at Fidelity are also highly rated.
Pros
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at eToro, #1 Online Broker
67% of retail investor accounts lose money when trading CFDs with this provider.
This guide will now walk you through the process of how to buy high-yield dividend stocks without paying any commission on your orders. We will use eToro as our go-to broker, not least because the platform allows you to invest in fractional stocks in a secure and seamless manner.
In fact, the process of registering an account, making a deposit, and buying high-yield dividend stocks should take you no more than five minutes.
visit the eToro website, click on ‘Join Now’, and enter your personal information when prompted. This will initially require your first and last name, email address, and telephone number. You also need to choose a username and a strong password for your account.
You will also be asked for additional information surrounding your date of birth, nationality, home address, and social security number. To complete the registration process, upload a copy of your government-issued ID.
67% of retail investor accounts lose money when trading CFDs with this provider.
You will need to meet a minimum deposit of $50 before you can buy high-yield dividend stocks. The best payment option to use is a debit/credit card, as this will be processed and added to your account instantly. Paypal, Skrill, and Neteller also permit instant deposits.
Other payment types supported include ACH, online banking, and bank wires. eToro allows US investors to deposit funds on a fee-free basis (otherwise 0.5%) – which is yet another reason why we like the broker.
You can now find the high-yield dividend stocks that you want to buy. The most simple way of doing this is to use the search box at the top of the screen.
in our example above, we are searching for British American Tobacco, which, at the time of writing, is offering a running yield of over 8%.
You will now see an order box appear on your screen – just like in the example image below. All you need to do now is enter your stake into the ‘Amount’ box.
As we noted earlier, you can invest any amount into your chosen high-yield dividend stocks from $50 upwards. No commissions will apply to your investment irrespective of your chosen exchange or market.
Finally, click on the ‘Open Trade’ button and eToro will complete your high-yield dividend stock purchase in real-time.
Adding a basket of high-yield dividend stocks to your investment portfolio can be a great way to counter short-term market volatility. It will also allow you to earn regular income payments which you can then reinvest into other stocks.
Just make sure that you diversify well by investing in a wide range of dividend-paying stocks – and never make the mistake of focusing solely on the yield. If you’re ready to buy high-yield dividend stocks right now – eToro offers thousands of 0% shares which you can purchase from just $50 per trade.
This SEC-regulated broker also allows US clients to deposit funds with a debit/credit card on a fee-free basis. As such, you can complete the end-to-end investment process in under five minutes.