High-dividend stocks can provide regular income through company earnings distributions. While attractive, high yields aren't always sustainable - some indicate underlying issues like falling stock prices.

What Are Dividend Stocks?

Dividend stocks are shares of established companies that regularly distribute earnings to investors through:

• Annual payments
• Semi-annual payments
• Quarterly payments
• Monthly payments

The average yield among top dividend stocks is approximately 12%. Quality dividend stocks typically come from well-established companies that consistently increase payouts over time.

Top 20 High-Dividend Stocks (as of March 2025)

Notable high-yield dividend stocks include:

• Ready Capital Corp (RC): 16.46%
• Angel Oak Mortgage REIT (AOMR): 12.69%
• Two Harbors Investment Corp (TWO): 12.67%
• Chicago Atlantic Real Estate Finance (REFI): 12.12%
• International Seaways Inc (INSW): 12.04%

[Full table of 20 stocks with yields included in original content]

Investment Approaches

Investors can access dividend stocks through:

1. Dividend funds (ETFs or index funds)

   • Instant diversification
   • Single transaction access
   • Regular dividend payments
   • Built-in risk management

2. Individual dividend stocks

   • Higher potential yields
   • Lower expenses
   • Custom portfolio construction
   • More control over investments

Evaluating Dividend Stocks

Key factors to consider:

• Compare yields among industry peers
• Examine payout ratios (generally should be below 80%)
• Assess dividend sustainability
• Consider tax implications
• Review company fundamentals
• Check dividend growth history

Safety Considerations

Exercise caution with:

• Yields over 4% (require careful analysis)
• Yields over 10% (high-risk territory)
• Unsustainable payout ratios
• Companies using debt to fund dividends

For lower-risk options, consider dividend aristocrats - S&P 500 companies that have increased dividends annually for at least 25 years.

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