Although seemingly most of the celebrated ideas on financial publications center on high-growth plays, investors should spare some thought toward high-yield dividend stocks . In particular, I’m referring to stable or relevant enterprises that offer considerable passive income. No, you shouldn’t abandon your growth game.
However, these ideas are likely working on commission. They’re great when things are going well but what happens when the rain falls? You need some reassurances that you’re going to get paid to pay the bills. That’s effectively what high-yield dividend stocks do.
With that, below are some compelling examples to consider. BHP (BHP) Based in Australia, BHP (NYSE: BHP ) falls under the materials industry ; specifically, it deals with industrial metals and mining. As a resource player, BHP primarily operates through tis copper, iron ore and coal extraction businesses.
It also engages in the mining of silver, zinc, molybdenum, uranium and gold. All these commodities are relevant for industrial or energy purposes, making BHP a great play for high-yield dividend stocks. Indeed, BHP offers a forward dividend yield of 4.
84% . That’s well above the materials sector’s average yield of 2.82%.
Further, the payout ratio is reasonable at 55.6%. That said, a drawback for BHP is that the company only pays its dividends semiannually.
Also, it doesn’t presently enjoy a lengthy track record of annual payout increases. Over the trailing 12 months ( TTM ), BHP poste.
