General Mills and Campbell's Both Pay Around 7% in Dividends. Which Stock Is the Safer Option for Income Investors?
High-yielding stocks can be enticing, but they often come with considerable risk.
General Mills and Campbell's Both Pay Around 7% in Dividends. Which Stock Is the Safer Option for Income Investors?
Overview
Investing in dividend stocks can be tricky because while you may want to secure a high yield, you don't want to take on too much risk, either. That's why, when yields get fairly high (i.e., more than 5%), there can be some hesitancy in the market; investors may not necessarily be loading up on these types of stocks, even if there are moderate risks around them.
A couple of particularly high-yielding stocks today include Campbell's (NASDAQ: CPB) and General Mills (NYSE: GIS). These two iconic food companies offer investors yields that are around 7%. That's incredibly high when you consider the S&P 500 is averaging a much more modest yield of just over 1%. Which of these stocks is the safer option right now?
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Originally published at www.fool.com.
