A high yield is a starting point, not a recommendation

The yield is the yearly dividend divided by the share price. It goes up when the dividend rises, but also when the price falls. That is why the highest yields on any list deserve the most questions: is the payout covered by profits, is the price falling for a reason, and has the company ever cut the dividend?

Some funds, such as those that sell options to boost income, can show very high yields. Their payout can change a lot from month to month and they may give up growth in exchange. Read what a fund does before you rely on its yield.

What to look at next to the yield

  • Growth (5 yr) shows whether the payment has been rising. A high yield with no growth gives you income that buys less every year.
  • Raised in a row shows how steady the company has been.
  • The profile page explains what the business does and where the dividend comes from.

For the full picture, read dividend growth vs. high yield and high yield: opportunity or trap.