Stocks That Pay High Dividends: 10 Picks for Income-Oriented Investors

Investing in dividend-paying stocks can be a great way to generate income and beat inflation over time. Dividend-paying companies typically have strong financial footing and are committed to returning cash to shareholders.

According to a study by J.P. Morgan, companies that pay dividends have outperformed non-dividend-paying companies by an average of 2% per year over the past 40 years. And over the past 10 years, dividend-paying stocks have returned an average of 9.4% per year, compared to just 5.3% for non-dividend-paying stocks.

So, if you're looking for stocks that can provide you with a steady stream of income, here are 10 picks for you to consider:

These stocks all offer dividend yields that are above the average for the S&P 500 index, which is currently around 1.3%. And they have all been paying dividends for at least 10 years, so you can be confident that they are committed to returning cash to shareholders.

Of course, no investment is without risk. Dividend-paying stocks can still lose value, and there is always the possibility that a company will cut its dividend. However, over the long term, dividend-paying stocks have outperformed non-dividend-paying stocks, and they can be a valuable part of a diversified portfolio.

Here are some tips for investing in dividend-paying stocks:

• Consider your investment goals. If you are looking for a steady stream of income, dividend-paying stocks can be a good option. However, if you are looking for growth, you may want to consider other types of investments.
• Do your research. Before you invest in any dividend-paying stock, make sure you understand the company's business, financial condition, and dividend history.
• Diversify your portfolio. Don't put all of your eggs in one basket. Diversify your portfolio by investing in a variety of dividend-paying stocks, as well as other types of investments.
• Rebalance your portfolio regularly. As your investments grow, you will need to rebalance your portfolio to ensure that your asset allocation is still in line with your investment goals.

FAQs About Stocks That Pay High Dividends

Q: What is a dividend?
A: A dividend is a payment made by a company to its shareholders. Dividends are typically paid quarterly, but some companies pay them monthly or annually.

Q: What is a dividend yield?
A: A dividend yield is the annual dividend per share divided by the current share price. It is expressed as a percentage.

Q: What is the average dividend yield for the S&P 500 index?
A: The average dividend yield for the S&P 500 index is currently around 1.3%.

Q: Are dividend-paying stocks a good investment?
A: Dividend-paying stocks can be a good investment for income-oriented investors. However, it is important to do your research before investing in any dividend-paying stock.

Q: How can I find dividend-paying stocks?
A: There are a number of ways to find dividend-paying stocks. You can use a stock screener to search for stocks that meet your criteria, or you can consult with a financial advisor.

Q: What are some tips for investing in dividend-paying stocks?
A: Here are some tips for investing in dividend-paying stocks:

• Consider your investment goals.
• Do your research.
• Diversify your portfolio.
• Rebalance your portfolio regularly.