2 High-Yield Dividend Stocks Worth Buying Right Now
ExxonMobil and Brookfield Renewable are both reliable income plays right now.
Overview
With the 10-Year Treasury now hovering near 4.8%, many income-seeking investors will likely be tempted to sell their dividend stocks and buy low-risk T-bills instead. That might seem like the prudent move, but Treasuries tend to underperform stocks over the long run.
If you invest $1,000 in a 10-Year T-bill today at 4.8%, that investment will predictably grow to $1,480 when it matures. But if you invest that $1,000 in the S&P 500 (SNPINDEX: ^GSPC) -- and assume it will maintain its historical annual growth rate of 10% -- that investment will have blossomed to about $2,640 with reinvested dividends.
Details
Therefore, if you can afford to lock up your cash in long-term Treasuries, it still makes more sense to park your cash in dividend stocks and tune out the near-term noise. If market downturns make you queasy but you still want stable dividends, consider these two high-yield stocks: ExxonMobil (NYSE: XOM) and Brookfield Renewable (NYSE: BEPC).
Source
Originally published at www.fool.com.