Seeking High Dividend Yields – Dividend Stocks

In this changing financial environment with real rates positive and many asset classes having negative expected returns, dividends can provide great passive income as long as they aren’t cut. Remember there is always risk with everything.

Passive income at its finest. Dividends. Not much to be done while you hold them. The most work and fun is when researching through the many long lists of them. They seem to come in every shape and size. There are ETFs for everything. I just saw a AMT-free Muni Bond ETF. I didn’t know there was that variation of Muni Bonds ETF too.

There is some important criteria to consider when comparing and choosing them. Although we want the highest yielding dividends we want to make sure they are consistent and will not be reduced or cut. Therefore, let’s also look at their history. Also, it is about what you keep so we should pay attention to management fees with ETFs.

There are dividend stocks which, of course, have no management fees. They are usually value stocks but not always. Here are some that I find of interest and have positions in some (Ticker & Yield):

GGB – Brazil Steel 20.55% (this is recent, was a little lower before)*

HIMX – Taiwan Semi 16.17% (this is recent, was lower before but now it also has potential growth)*

UNB – Bank 5.34% (very consistent)

UVE – Insurance 5.33%

MFC – Life Insurance 5.04%

TX – Latin Amer Steel 4.55%

TFC – Bank 4.3%

FNF – Title Insurance 4.2%

CFG – Bank 4.02%

ALLY – Financial 3.83%

PSX – Oil 3.63%

CMCL – Mining 3.56%

EMN – Chemical 3.49%

Of course there are countless more. DE and VALE are others I like because of the companies themselves. DE is implementing AI in their equipment with an autonomous tractor so in my opinion they are adapting and innovating for the future. Forward growth and sustainability. Within an environment of declining productivity, autonomous equipment appears to fulfill as a solution to increase productivity. Vale is one of the world’s largest mining companies for iron and more.

However both have very low dividends. Around .5% for VALE and 1.15% for DE. Great companies and should also have growth.

We will continue this series on dividend yield asset classes because I believe portfolios should be diversified with some of these as well. An important part of a portfolio. The percentage depends on many variables especially time and risk tolerance.

*This high dividend yield is recent so by next dividend it could be much lower. Remember this yield is based on the last dividend. We do not know what future holds. Past does not predict future. It could be same, higher, or lower. Both LOW P/E stocks in strong sectors so could present potential upside appreciation as well along with dividends.