Dividend Stock Guru

Dividend Income Potential

Can it Maintain its Current Dividend?

Is Campbell’s Right for You?

Business Outlook

Campbell’s portfolio of 16 leadership brands includes many products that are household names including: Campbell’s, Cape Cod, Chunky, Goldfish, Kettle Brand, Lance, Late July, Pace, Pacific Foods, Pepperidge Farm, Prego, Rao’s, Snack Factory pretzel crisps, Snyder’s of Hanover, Swanson and V8.

With well-known brands like these, it’s hard to believe that Campbell’s would ever fall on hard times.

However, the company has not been immune to the recent fortunes of the Packaged Food Industry which has been punished by investors for weaker-than-expected earnings and lower revenue and earnings forecasts.

Sales and operating earnings in its largest Meals & Beverages division were down 4% and 15% respectively, for the Q2/26 fiscal quarter. Results were even worse in the smaller Snacks division where sales and operating earnings were down 6% and 39% respectively, for the same period.

Both divisions are suffering volume declines from inflationary price increases, private label competition, consumer preferences for healthier, fresh foods, and from lower food consumption caused by GLP-1 drugs.

Growing Campbell’s revenue and gross margin will be highly dependent on stabilizing the Snack business with new product innovations. The company will also need to leverage its well known brands, strong retailer relationships, and its supply chain and manufacturing network.

Finally, Campbell’s needs to use its growing artificial intelligence data analytics capabilities to discover and implement new product innovations that consumers will value.

All of this adds up to a lot of uncertainty for investors considering Campbell’s stock including:

If I buy the stock, is the dividend at risk?
How will the company perform for the rest of 2026?
How stable is the share price and is there a risk that the price will fall even lower?
What’s a good entry price to buy the stock to provide enough headroom for pullbacks in the market?

Get the report for a better understanding of these questions.

Get Campbell's stock report

Dividend Income Potential

Some investors stay away from companies with declining revenue even if they have consistently maintained their dividend.

Right now, Campbell’s offers up to a 7.7% dividend.

That yield is hard to beat compared to fixed income returns from CDs with an average annualized return of under 4%.

Can investors take advantage of this 7.7% dividend?

Get the report to find out Campbell’s dividend income potential.

Can it maintain its current dividend?

That’s going to depend on the company’s ability in the future to grow organic revenue while generating enough income and cash flow to support the dividend.

It will also need to innovate and make significant investments in its well-known brands while addressing continuous changes in consumer preferences, especially for foods with higher protein and lower fat.

Finally, the company needs to take full advantage of its large manufacturing and distribution network to bring products to market with a value and price point that smaller competitors can’t match.

Can Campbell’s produce enough net income and cash flow to maintain its current dividend?

Long Term Debt

Campbell’s is still paying down some of the debt it used to acquire Sovos Brands in 2024.

Looking forward, the company needs to actively manage its long term debt levels including managing the interest rates and maturities on this debt.

It also requires ensuring that the company generates enough operating income to cover the interest expense on this debt and maintain a responsible level of leverage on the balance sheet.

Paying down large amounts of debt limits Campbell’s options for doing larger acquisitions in the new future.

Does Campbell’s long term debt put its dividend at risk?

Get Campbell's stock report

Is Campbell’s Right for You?

If you’re a high yield dividend investor, you want to find companies with a high dividend yield and a stock that can hold its value.

While stock price upside is always a good thing, you’d rather have a stable return on your investment from dividend income instead of waiting for a stock to pop over the course of many years or even worse, suffering through major downturns in the market.

Don’t buy Campbell’s or any other high yield dividend stock without doing extensive research and due diligence.

You need to know exactly what you’re getting into with a stock like Campbell’s.

We’ve developed a new high yield dividend stock research report that’s designed to help individual retail investors just like you.

Our report on Campbell’s can help you research the company quickly and confidently:

We’ve rated Campbell’s against 26 different metrics on an “easy to read” scorecard specifically focused on whether it can continue paying its dividend while the stock holds its value.
One look at this clickable scorecard and you’ll know right away why we’ve rated the stock as a “Strong Buy”, an “Avoid”, or something in between.
We’ve listened to Campbell’s earnings conference calls, read most of the equity analysts reports, and checked out the leading financial articles so you don’t have to.
This is a first of its kind report focused solely on high yield dividend stocks - not on estimating the future value of the company’s stock price.

There’s nothing else like it in the industry.

Get a Free Report

For a limited time, we’re offering a free report on United Parcel Service just like the one we created for Campbell’s.

Get Kraft Heinz stock report

Check it out and you’ll see how we’ve put all this research right at your fingertips.

We’ve also published other high yield dividend stock reports on other companies you’ve read about including Kraft Heinz, Western Union and Pfizer:

Get Western Union stock report

Use these reports to quickly find, screen, and invest in high yield dividend stocks today!

Check out our other recent posts on our Substack:

Michael Letcher has a position in Western Union but no positions in any of other stocks referenced in this post as of its publication date. All posts published by Dividend Stock Guru are subject to our terms of service which includes a disclosure policy.

Please send any feedback you have on this post along with any suggestions you have for topics or any suggestions you have for companies you’d like to see featured in future reports to support@dividendstockguru.com.

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

Get Kraft Heinz stock report

Will Berkshire Hathaway Dump Kraft Heinz Stock While You’re Collecting its 7.2% Dividend?

Dividend Stock Guru — Tue, 31 Mar 2026 20:23:16 GMT

Kraft Heinz is one of the largest food and beverage companies in the world operating in more than 190 countries and territories.

It reported $24.9 billion of sales for full year 2025.

The stock price recently closed at $22.34 which translates to a 7.2% dividend – a rare find among companies with a well-known brand.

The company must grow organic revenue as its largest institutional investor looks for the right time to sell its shares, recover some of its massive losses, and exit this company for good.

While it hasn’t grown its dividend, it has maintained it for 7 straight years.

Should high yield dividend stock investors consider investing in Kraft Heinz?

Dividend Income Potential

Can it Maintain its Current Dividend?

Is Kraft Heinz Right for You?

Business Outlook

Some of the best known Kraft Heinz products are highly visible on our kitchen counters like Heinz Tomato Ketchup, Kraft Mac & Cheese, Philadelphia Cream Cheese, and Oscar Mayer meats.

With that kind of free advertising, it’s hard to believe that a company like Kraft Heinz would ever experience hard times.

However, since the 2015 merger of Kraft and Heinz, the company’s stock has lost 70% of its value while the S&P 500 has doubled over the same period.

The company has lost a significant amount of volume due to inflationary price increases, private label competition, consumer preferences for healthier foods, and from lower amounts of food consumption resulting from the increased popularity of GLP-1 drugs.

The stock price has fallen as sales and earnings continue to drop which has caused Kraft Heinz’s annualized dividend to climb above 7% - something that always catches the attention of high yield dividend stock investors.

Normally these challenges alone would be enough for any company to address – however there’s a lot more going on.

Earlier this year Berkshire Hathaway announced its intention to sell its entire 27.5% stake in the company. This was due in part to many years of poor returns for its own shareholders as well as a response to Kraft Heinz’s announcement late last year that it planned to separate into 2 publicly traded companies.

However, last month Kraft Heinz announced a decision to pause the split and Berkshire Hathaway stated that it had no immediate plans to sell its Kraft Heinz stock.

All of this adds up to a lot of uncertainty for investors considering Kraft Heinz stock including:

If I buy the stock, is the dividend at risk?
How will the company perform for the rest of 2026?
If Berkshire Hathaway starts dumping its shares, how much could the stock price drop after I buy it?
What happens if Kraft Heinz decides to pursue separating the company again?
If the company splits into 2 separate, publicly traded companies would that be good for investors?

Get the report for a better understanding of these questions.

Get Kraft Heinz stock report

Dividend Income Potential

Some investors stay away from companies with declining revenue even if they have consistently maintained their dividend.

Based on Kraft Heinz’s recent closing price of $22.34, it offers an attractive 7.2% annualized dividend yield.

That yield is hard to beat compared to fixed income returns from CDs with an average annualized return of under 4%.

Can investors take advantage of this 7.2% dividend?

Get the report to find out the dividend income potential of Kraft Heinz.

Can it maintain its current dividend?

That’s going to depend on the company’s ability in the future to grow organic revenue while generating enough income and cash flow to support the dividend.

It will also innovate and make significant investments in its well-known brands while addressing continuous changes in consumer preferences, especially for foods with higher protein and lower fat.

Finally, the company needs to take full advantage of its large manufacturing and distribution network to bring products to market with a value and price point that smaller competitors won’t be able to match.

Can Kraft Heinz produce enough net income and cash flow to maintain its current dividend?

Long Term Debt

It’s important for companies like Kraft Heinz to manage its long term debt levels.

This includes managing the interest rates and maturities on this long term debt.

It also requires ensuring that the company generates enough operating income to cover the interest expense on this debt and maintains a responsible level of leverage on the balance sheet.

Is Kraft Heinz Right for You?

If you’re a high yield dividend investor, you want to find companies with a high dividend yield and a stock that can hold its value.

Don’t buy Kraft Heinz or any other high yield dividend stock without doing extensive research and due diligence. You need to know exactly what you’re getting into with a stock like Kraft Heinz.

We’ve developed a new high yield dividend stock research report that’s designed to help individual retail investors just like you.

Our report on Kraft Heinz can help you research the company quickly and confidently:

We’ve rated Kraft Heinz against 26 different metrics on an “easy to read” scorecard specifically focused on whether it can continue paying its dividend while the stock holds its value.
One look at this clickable scorecard and you’ll know right away why we’ve rated the stock as a “Strong Buy”, an “Avoid”, or something in between.
We’ve listened to Kraft Heinz earnings conference calls, read most of the equity analysts reports, and read the leading financial publications so you don’t have to.
This is a first of its kind report focused solely on high yield dividend stocks - not on estimating the future value of the company’s stock price. There’s nothing else like it in the industry.

Get a Free Report

For a limited time, we’re offering a free report on United Parcel Service just like the one we created for Kraft Heinz.

Get Western Union stock report

Check it out and you’ll see how we’ve put all this research right at your fingertips.

We’ll also be publishing other high yield dividend stock reports on many other companies you’ve read about including our recent reports on Western Union and Pfizer:

Use these reports to quickly find, screen, and invest in high yield dividend stocks today!

Check out our other recent posts on our Substack:

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

Get Western Union Stock Report

Does Western Union’s 9.9% Dividend Make it a Rising Star or a “Falling Knife”?

Dividend Stock Guru — Wed, 18 Mar 2026 02:47:06 GMT

Western Union is the largest money transfer company in the world operating in more than 200 countries and territories.

It reported $4.1 billion of sales for full year 2025.

The stock price recently closed at $9.49 with a 12-month consensus price of $9.34 from the equity analysts who cover the company.

The company is in the middle of a multi-year battle to stabilize revenue from its core Consumer Money Transfer (CMT) business while growing its Consumer Services business.

While it hasn’t grown its dividend, it has maintained it for 5 straight years.

Is it safe for investors to continue to collect a hefty 9.9% dividend from a company like Western Union even if it has flat to slightly declining revenue?

Dividend Income Potential

Can it Maintain its Current Dividend?

Is Western Union Right for You?

Get Western Union stock report

Business Outlook

Western Union is best known for its Consumer Money Transfer (CMT) business. Most of us have seen their highly visible retail shopping locations.

In recent years, CMT revenue has experienced modest annual revenue declines as more competitors enter the market.

The Consumer Services business offset some of this revenue decline by growing various consumer services such as bill payments, prepaid cards, and digital wallets.

During Q2/2026, Western Union is expected to close on the $500 million acquisition of International Money Express (Intermex). However, this acquisition has not improved the market sentiment for the company.

Get the report and see if the market is correct or if Western Union is quietly silencing the skeptics.

Dividend Income Potential

Some investors shy away from companies with flat revenue even if they have consistently maintained their dividend.

Based on Western Union’s recent closing price of $9.49, it offers an attractive 9.9% annualized dividend yield.

That yield is hard to beat compared to fixed income returns from CDs that are now averaging under 4% annualized returns.

But is it safe to invest in a company like Western Union?

Get the report to find out if Western Union is a dividend trap or an undervalued, underappreciated stock.

Can it maintain its current dividend?

That’s going to depend on the company’s ability in the future to generate enough income and cash flow to support the dividend.

It will also need to successfully integrate the Intermex acquisition and continue to grow the Consumer Services business.

Finally, the company needs to get solid returns on its capital investments such as its three-year rollout of the “Beyond” digital-first payments platform.

Can Western Union produce enough net income and cash flow to maintain its current dividend?

Long Term Debt

It’s important for companies like Western Union to manage its long term debt levels.

This includes managing the interest rates and maturities on this long term debt.

It also requires ensuring that the company generates enough operating income to cover the interest expense on this debt and maintains a responsible level of leverage on the balance sheet.

Is Western Union Right for You?

If you’re a high yield dividend investor, you want to find companies with a high dividend yield in a stock that can hold its value.

Don’t buy Western Union or any other high yield dividend stock without doing extensive research and due diligence.

We’ve developed a new high yield dividend stock research report that’s designed to help individual retail investors just like you.

Our report on Western Union can help you research the company quickly and confidently:

We’ve rated Western Union against 26 different metrics on an “easy to read” scorecard specifically focused on whether it can continue paying its dividend while the stock holds its value.
One look at this clickable scorecard and you’ll know right away why we’ve rated the stock as a “Strong Buy”, an “Avoid”, or something in between.
We’ve listened to Western Union’s earnings conference calls, read most of the equity analysts reports, and read the leading financial publications so you don’t have to.
This is a first of its kind report focused solely on high yield dividend stocks - not on estimating the future value of the company’s stock price. There’s nothing else like it in the industry.

Get a Free Report

For a limited time, we’re offering a free report on United Parcel Service just like the one we created for Western Union.

Check it out and you’ll see how we’ve put all this research right at your fingertips.

We’ll also be publishing other high yield dividend stock reports on many other companies you’ve read about including our recent report on Pfizer:

Use these reports to quickly find, screen, and invest in high yield dividend stocks today!

Check out our other recent posts on our Substack:

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

Can Pfizer Grow its 6.3% Dividend in 2026 as Revenue Declines?

Dividend Stock Guru — Thu, 12 Mar 2026 00:40:09 GMT

Pfizer is one of the largest pharmaceutical companies in the world.

It reported $62.6 billion of sales for full year 2025.

The stock price recently closed at $27.16, well below its 10-year peak.

Despite declining revenue and cash flows from COVID-19 products, it has a streak of increasing its annualized dividend for 16 consecutive years. Does that make Pfizer a “Strong Buy” or an “Avoid”?

Can the company continue this winning streak? Or is it dividend cut just waiting to happen?

Is Pfizer Right for You?

Business Outlook

Pfizer’s primary business challenge is to develop and acquire a new diversified pipeline of drugs to replace declining revenue from COVID-19 products as well as from other drugs that will lose exclusivity over the next 4 years.

The Seagen and Metsera acquisitions created large opportunities for Pfizer to grow their oncology (cancer) and metabolic management platforms.

The company will also need to use its competitive advantages to integrate these acquisitions into the company’s global infrastructure.

Going forward, Pfizer will need to demonstrate continued growth in its drug pipeline while meeting street expectations for revenue and earnings per share.

Share Price Growth and Dividend Income Potential

Pfizer appears to have transitioned from a dividend growth stock to a high yield dividend stock.

Based on its recent closing price of $27.16, it offers an attractive 6.3% annualized dividend yield.

Its forward price to earnings ratio of 9.2 suggests that the stock might be trading at a discount compared to the industry.

Get the report and find out if Pfizer trades at a discount compared to its industry.

Ability to Continue Paying its Dividend

As it works to replace declining COVID-19 revenue, Pfizer has continued growing its annualized dividend. That’s a good sign.

One of the things that has helped during this period, is the progress the company has made as part of their manufacturing optimization and cost realignment programs. In 2026, the company expects to reduce manufacturing costs by an additional $700 million and realize another $600 million in cost realignment savings.

The company has also made significant progress integrating artificial intelligence (AI) into manufacturing and R&D to drive additional savings.

Have these cost saving initiatives created enough headroom that Pfizer needs to continue producing enough net income and cash flow while new sources of revenue are being developed?

Long Term Debt

Like many companies in its industry, Pfizer has relied on long-term debt to help it acquire new products and companies.

Paying down this debt after acquisitions takes strong earnings and cash flow. This is also important to avoid having too much leverage on the balance sheet.

Is Pfizer Right for You?

If you’re a high yield dividend investor, you want to find companies with a high dividend yield and a stock that can hold its value.

Don’t buy Pfizer or any other high yield dividend stock without doing extensive research and due diligence.

We’ve developed a new high yield dividend stock research report that’s designed to help individual retail investors just like you.

Our report on Pfizer can help you research the company quickly and confidently:

We’ve rated Pfizer against 27 different metrics on an “easy to read” scorecard specifically focused on whether it can continue paying its dividend while the stock holds its value.
One look at this clickable scorecard and you’ll know right away why we’ve rated the stock as a “Strong Buy”, an “Avoid”, or something in between.
We’ve listened to Pfizer’s earnings conference calls, read most of the equity analysts reports, and read the leading financial publications so you don’t have to.
This is a first of its kind report focused solely on high yield dividend stocks - not on estimating the future value of the company’s stock price. There’s nothing else like it in the industry.

Get a Free Report

Still not convinced?

For a limited time, we’re offering a free report on United Parcel Service just like the one we created for Pfizer.

Check it out and you’ll see how we’ve put all this research right at your fingertips.

We’ll also be publishing other high yield dividend stock reports on many other companies you’ve read about.

Use these reports to quickly find, screen, and invest in high yield dividend stocks today!

Check out our other recent posts on our Substack:

Michael Letcher has no positions in any of the stocks referenced in this post as of its publication date. All posts published by Dividend Stock Guru are subject to our terms of service which includes a disclosure policy.

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

Get your free UPS stock report

Can United Parcel Service (UPS) Generate Enough Cash Flow to Keep Paying Its Dividend?

Dividend Stock Guru — Tue, 03 Mar 2026 04:34:03 GMT

UPS is the world’s largest package delivery company operating in more than 200 countries.

In its most recent earning release, it reported full year revenue for 2025 of $88.7 billion. In 2026, it is forecasting annual sales of $89.7 billion.

It’s now entering the final 6 months of an 18 month initiative to eliminate lower margin Amazon business.

What else can we learn from the Q4 and full year earnings release?

Can UPS successfully complete its transition to replace 50% of its Amazon volume?

Is UPS Right for You?

Get free UPS stock report

Business Outlook

The primary business challenge for UPS is to optimize its infrastructure network and facilities to handle Amazon’s remaining higher margin e-commerce shipments while acquiring new higher margin small business customers.

To finish the Amazon transition, it plans to generate additional savings by eliminating an additional 30,000 positions and closing 24 more buildings during the first half of 2026.

Going forward, UPS will need to continue to navigate challenges from tariffs that have negatively impacted some of the company’s most profitable trade routes between the U.S. and China. Some of the new customers UPS is trying to attract, are also negatively affected by these tariffs.

Share Price Growth and Dividend Income Potential

Based on UPS’ recent closing price of $115.96, it offers a 6.0% annualized dividend yield. This yield is down because of the increase in the stock price after the company reported its Q4 and full year results.

Its forward price to earnings ratio of 16.4 suggests that the stock might be trading at a discount compared to the industry.

Get the report and find out if UPS is trading at a discount.

Ability to Continue Paying its Dividend

Including 2025, UPS has a current streak of 16 consecutive years of increasing its annualized dividend. That’s a good sign.

They’ve also made solid progress reconfiguring their network, closing facilities and completing a voluntary retirement program that has saved billions in connection with right sizing for the remaining Amazon e-commerce volume.

Have these cost saving initiatives been enough to create the headroom that UPS needs to continue producing enough net income and cash flow?

Long Term Debt

Acquiring new companies and investing $3.7 billion in capital expenditures in 2025 required issuing additional long term debt, but the Frigo-Trans GmbH and the Andlauer Healthcare Group acquisitions offer the potential for high-margin services that can help the company during weak macroeconomic environments.

UPS is also retiring an aging fleet of airplanes and placing 18 new 767-300F planes in service during 2026. That will require a delicate balance of operating leases combined with using cash or debt.

Is UPS Right for You?

If you’re a high yield dividend investor, you’re looking for companies that can pay you a high dividend yield while the stock holds its value.

While you’re open to buying a stock that will go up in value, you’d rather have a stable dividend return on your investment instead of waiting for a stock to increase in value over a period of many years or being exposed to major downturns in the market.

Don’t buy United Parcel Service or any other high yield dividend stock unless you’ve taken the time to do extensive research and due diligence.

We have a new high yield dividend stock report that’s designed specifically for individual retail investors just like you.

Our free UPS report on can help you complete your research on this company quickly and confidently:

We’ve rated UPS against 26 different metrics using an “easy to read” scorecard that’s specifically focused on whether the company can continue paying its dividend while the stock holds its value.
A quick look at this clickable scorecard and you’ll be able to see right away why we’ve rated the stock as a “Strong Buy”, an “Avoid”, or something in between.
We’ve reviewed UPS’ earnings conference calls, read many of their equity analyst reports, and monitored the leading financial publications so you don’t have to.
This is a first of its kind report focused solely on high yield dividend stocks - not on the potential of the stock price to increase. You won’t find anything else like it in the industry.

Get a Free Report

Check it out and you’ll see how much easy to understand research we’ve put right at your fingertips.

If you like what you see, check out our other reports.

Get our report on Pfizer

We’ll also be publishing other high yield dividend stock reports on many other companies you’ve heard about.

These reports can help you to quickly find, screen, analyze, and invest in high yield dividend stocks today!

Check out other recent posts on our Substack:

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

Can AES Power its Dividend with New AI Data Center Contracts?

Dividend Stock Guru — Wed, 28 Jan 2026 20:59:28 GMT

AES is an independent global power generation and utility company expecting $12.2 billion in sales for 2025.

Today it’s building power generation projects that are 50% larger than projects from 5 years ago.

The stock price recently closed at $14.92, up 58% from its 52-week low last May.

It’s hoping to capitalize on the massive AI data center build out.

Does that make AES a “Strong Buy” or an “Avoid”?

Get AES stock report

Can AES continue this winning streak? Or is it dividend cut just waiting to happen?

Is AES Right for You?

Business Outlook

AES’ primary business challenge is to secure profitable, long-term power purchase agreements (PPAs) to gain market share.

That requires massive new projects to build power generation plants and utility infrastructure.

Some of this new capacity is designed to capitalize on AES’ considerable experience with renewable energy.

To succeed, AES will need to demonstrate the ability to sell long-term PPAs to large customers and bring new power generating projects online that are cost effective and capable of delivering high margins.

Why it matters:
AES operates in a capital intensive industry. They need pricing power in the marketplace along with the ability to deliver their projects on time and under budget. Higher margin business will make it easier for AES to pay down some of the debt needed for these large capital investments.

Share Price Growth and Dividend Income Potential

AES has attracted attention over the past year as a high yield dividend stock.

Based on its recent closing price of $14.92, it offers an attractive annualized dividend yield around 5%.

If it is successful executing its business strategy, it could be an overlooked and underappreciated utility stock at a time when most utility companies are already trading at full value.

Get the report and find out if AES is trading at a discount relative to other peers in the utility industry.

Ability to Continue Paying its Dividend

While AES has maintained its current quarterly dividend, it recently ended a 12-year streak of annual dividend increases.

Is the company earning enough net income and generating enough cash flow to continue paying its dividend?

Get AES stock report

Long Term Debt

Building new power plants has required AES to increase the amount of long term debt that it has.

Paying the interest on that debt requires strong earnings and cash flow.

It’s also important for AES to pay down this long term debt over time to avoid having too much leverage on the balance sheet.

Why it matters:
AES needs to manage its debt levels to help ensure that it is not vulnerable to downturns and interest rate hikes. If AES needs too much cash flow for paying the principal and interest on its debt, it could become more difficult to continue paying dividends at the current levels.

Is AES Right for You?

If you’re a high yield dividend investor, you’re interested in finding companies that can pay you a high dividend yield while the stock holds its value.

While you’re open to upside in the stock price, you’d rather have a stable return on your investment instead of waiting for a stock to pop over the course of many years or even worse, suffering through major downturns in the market.

Don’t try to buy AES or any other high yield dividend stock without doing extensive research and due diligence.

We’ve developed a new high yield dividend stock report that’s designed to help individual retail investors just like you.

Our report on AES can help you research this company quickly and confidently:

We’ve scored AES against 26 different metrics on an “easy to read” scorecard specifically focused on whether it can continue paying its dividend while the stock holds its value.
One look at this clickable scorecard and you’ll know right away why we’ve rated the stock as a “Strong Buy”, an “Avoid”, or something in between.
We’ve listened to AES’ earnings conference calls, read reports from the equity analysts who cover the company, and scoured the leading financial publications so you don’t have to.
This is a first of its kind report focused solely on high yield dividend stocks - not on the potential of the stock price to increase. There’s nothing else like it in the industry.

Get a Free Report

Still not convinced?

For a limited time, we’re offering a free report on United Parcel Service just like the one we created for AES.

Take a look and you’ll see how we’ve put all this research right at your fingertips.

We’ll also be publishing other high yield dividend stock reports on many other companies you’ve read about.

Use these reports to quickly find, screen, and invest in high yield dividend stocks today!

Check out our some of other recent posts on our Substack:

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

Get your free UPS stock report

The Future of United Parcel Service (UPS) with Fewer Amazon Shipments

Dividend Stock Guru — Thu, 15 Jan 2026 08:30:30 GMT

UPS is the world’s largest package delivery company operating in more than 200 countries. Its annual sales are expected to reach $88.2 billion in 2025.

In 2022, its annual revenue peaked at $100.3 billion as Amazon e-commerce shipments exploded during the COVID-19 pandemic.

Now the company is reinventing itself and shedding 50% of lower margin Amazon business.

Despite declining revenue from Amazon, UPS has a continued streak of increasing its annualized dividend for 16 straight years. With this track record as a “Dividend Achiever” does that make UPS a “Strong Buy” or a “Hold”?

Can UPS continue this winning streak? Or is it dividend cut just waiting to happen?

Is UPS Right for You?

Get free UPS stock report

Business Outlook

The primary business challenge for UPS is to optimize its infrastructure network and facilities to handle Amazon’s remaining higher margin e-commerce shipments.

It also needs to successfully integrate the newly acquired Andlauer Healthcare Group into its logistics line of business.

Going forward, UPS will also need to demonstrate continued profitable growth in its U.S. Postal Service’s air cargo and Ground Saver businesses.

Why it matters:
Creating and acquiring new revenue sources is essential for maintaining profit margins and cash flow. This will also make it easier for UPS to pay down the long debt it used for the most recent acquisitions.

Share Price Growth and Dividend Income Potential

Based on UPS’ recent closing price of $106.58, it offers an attractive 6.6% annualized dividend yield.

Its forward price to earnings ratio of 15.4 suggests that the stock might be trading at a discount compared to the industry.

Get the report and find out if UPS is trading at a discount.

Ability to Continue Paying its Dividend

During this challenging period since the COVID-19 pandemic, UPS has continued growing its annualized dividend. That’s a good sign.

They’ve also made solid progress reconfiguring their network, closing facilities and completing a voluntary retirement program that has saved $2.2 billion in connection with right sizing for the remaining Amazon e-commerce volume.

Have these cost saving initiatives been enough to create the headroom that UPS needs to continue producing enough net income and cash flow?

Long Term Debt

Acquiring new companies and investing $4 billion in capital expenditures over the past 12-months has required issuing additional long term debt.

Paying the interest on that debt requires strong earnings and cash flow.

It’s also important for UPS to pay down this long term debt over time to avoid having too much leverage on the balance sheet.

Why it matters:
UPS needs to manage its debt levels to help ensure that it is not vulnerable to downturns and interest rate hikes. If UPS needs too much cash flow for paying the principal and interest on its debt, it could become more difficult to continue paying dividends at the current levels.

Is UPS Right for You?

If you’re a high yield dividend investor, you’re interested in finding companies that can pay you a high dividend yield while the stock holds its value.

Don’t try to buy UPS or any other high yield dividend stock without doing extensive research and due diligence.

We’ve developed a new high yield dividend stock report that’s designed to help individual retail investors just like you.

Our report on UPS can help you research this company quickly and confidently:

We’ve scored UPS against 25 different metrics on an “easy to read” scorecard specifically focused on whether it can continue paying its dividend while the stock holds its value.
One look at this clickable scorecard and you’ll know right away why we’ve rated the stock as a “Strong Buy”, an “Avoid”, or something in between.
We’ve listened to UPS’ earnings conference calls, read most of the reports from the equity analysts who cover the company, and scoured the leading financial publications so you don’t have to.
This is a first of its kind report focused solely on high yield dividend stocks - not on the potential of the stock price to increase. There’s nothing else like it in the industry.

Get a Free Report

Take a look and you’ll see how we’ve put all this research right at your fingertips.

If you like what you see, check out our other reports.

Get our report on Pfizer

We’ll also be publishing other high yield dividend stock reports on many other companies you’ve read about.

Use these reports to quickly find, screen, and invest in high yield dividend stocks today!

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Pfizer’s Dividend in a Post-COVID Future

Dividend Stock Guru — Thu, 15 Jan 2026 07:53:52 GMT

Pfizer is one of the largest pharmaceutical companies in the world expecting $62 billion of sales for 2025.

About 10 years ago, it began a slow climb from a $30 stock, eventually peaking at $61.43 in late 2021 based on strong sales of COVID-19 products.

The stock price recently closed at $25.15, well below its 10-year peak.

Despite declining revenue and cash flows from COVID-19 products, it has a continued streak of increasing its annualized dividend for 16 straight years. With this track record as a “Dividend Achiever” does that make Pfizer a “Strong Buy” or a “Hold”?

Can Pfizer continue this winning streak? Or is it dividend cut just waiting to happen?

Is Pfizer Right for You?

Business Outlook

Pfizer’s primary business challenge is to replace declining revenue from COVID-19 products as well as from other drug patents that are going to expire over the next 4 years.

To replace this revenue, Pfizer needs to develop and acquire new drugs that can be added to a growing, diversified pipeline.

The Seagen and Metsera acquisitions provided Pfizer with a large opportunity to grow their oncology (cancer) and metabolic management platforms.

Using the company’s competitive advantages will also be critical as these acquisitions are integrated into the company’s global infrastructure.

Going forward, Pfizer will need to demonstrate continued growth in its drug pipeline while meeting street expectations for revenue and earnings per share.

Why it matters:
Creating and acquiring new revenue sources is essential for maintaining profit margins and cash flow. This will also make it easier for Pfizer to pay down the long debt it used for the most recent acquisitions.

Share Price Growth and Dividend Income Potential

Pfizer appears to have transitioned from a dividend growth stock to a high yield dividend stock.

Based on its recent closing price of $25.15, it offers an attractive 6.8% annualized dividend yield.

Its forward price to earnings ratio of 8.2 suggests that the stock might be trading at a discount compared to the industry.

Get the report and find out if Pfizer is trading at a discount.

Ability to Continue Paying its Dividend

During this challenging period of replacing declining COVID-19 revenue, Pfizer has continued growing its annualized dividend. That’s a good sign.

One of the things that has helped during this period, is the headway they’ve made as part of their manufacturing optimization and cost realignment programs. Pfizer expects to realize $7.2 billion in total cost savings by the end of 2027.

Have these cost saving initiatives been enough to create the much needed headroom that Pfizer requires to continue producing enough net income and cash flow while new sources of revenue are being developed?

Long Term Debt

Like many companies in its industry, acquiring new products and companies has required Pfizer to increase the amount of long term debt that it has.

Paying the interest on that debt requires strong earnings and cash flow.

It’s also important for Pfizer to pay down this long term debt over time to avoid having too much leverage on the balance sheet.

Why it matters:
Pfizer needs to manage its debt levels to help ensure that it is not vulnerable to downturns and interest rate hikes. If Pfizer needs too much cash flow for paying the principal and interest on its debt, it could become more difficult to continue paying dividends at the current levels.

Is Pfizer Right for You?

If you’re a high yield dividend investor, you’re interested in finding companies that can pay you a high dividend yield while the stock holds its value.

Don’t try to buy Pfizer or any other high yield dividend stock without doing extensive research and due diligence.

We’ve developed a new high yield dividend stock report that’s designed to help individual retail investors just like you.

Our report on Pfizer can help you research this company quickly and confidently:

We’ve scored Pfizer against 26 different metrics on an “easy to read” scorecard specifically focused on whether it can continue paying its dividend while the stock holds its value.
One look at this clickable scorecard and you’ll know right away why we’ve rated the stock as a “Strong Buy”, an “Avoid”, or something in between.
We’ve listened to Pfizer’s earnings conference calls, read most of the reports from the equity analysts who cover the company, and scoured the leading financial publications so you don’t have to.

This is a first of its kind report focused solely on high yield dividend stocks - not on the potential of the stock price to increase. There’s nothing else like it in the industry.

Get the Pfizer report

Get a Free Report

Still not convinced?

For a limited time, we’re offering a free report on United Parcel Service just like the one we created for Pfizer.

Take a look and you’ll see how we’ve put all this research right at your fingertips.

We’ll also be publishing other high yield dividend stock reports on many other companies you’ve read about.

Use these reports to quickly find, screen, and invest in high yield dividend stocks today!

Check out some of our other recent posts on our Substack:

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

What price per share will you receive if a company you own stock in is acquired?

Risks You’ll Face if You Sell Covered Calls on a Company That’s Acquired

Dividend Stock Guru — Sat, 03 Jan 2026 03:07:27 GMT

When you own high yield dividend stocks, selling covered calls against a stock you own can be a great way to supplement the cash dividends you’re already receiving.

It can also help recover some of your investment losses if the stock price has declined after you bought it.

However, there is one scenario where you could lose a lot of money if a company is acquired when you have an open covered call position on that company.

What are covered calls?

If an acquisition is announced, is it possible the deal will be delayed or cancelled?

What happens if the company is acquired for a share price that’s below your covered call strike price?

What happens if the company is acquired for a share price that’s above your covered call strike price?

How to avoid losing a lot of money selling covered calls

What are covered calls?

Selling a covered call is when you sell or write call options on shares of stock that you already own.

When you do it, you’re giving another investor in the stock market (who you do not know), the right but not the obligation to buy the shares that you own at a set or strike price if they choose to exercise the option that you sold to them before it expires.

Covered call options are considered “covered” because you own the underlying stock tied to the option.

To sell covered calls, you’ll need to request covered call trading privileges from your brokerage firm. It’s a relatively low risk trading strategy and you shouldn’t run into any issues with being approved for this.

Consider this example:

You own 1,000 shares of stock in a company you purchased at a price of $13.00 per share on 1/1/26.
On 2/1/26, the stock has dropped to $11.00 per share but the company is still paying its dividend.
You’d like to generate some additional income to give the stock some additional time to recover and you’re expecting the stock price to remain flat or to increase only moderately over the long term.
On 2/1/26, you sell 10 covered call contracts with a $15.00 strike price that expire in 1 year on 2/1/27. Each contract represents 100 shares, 10 contracts X 100 shares equal to the 1,000 shares you own. (You would not be allowed to sell 11 covered call contracts unless you bought an additional 100 shares.)
You sell these 10 covered call contracts at the bid price in the market of $1.00 per share. That allows you to collect a premium of $1,000 (1,000 shares X $1.00) which is immediately deposited into your brokerage account. (There are modest brokerage and exchange fees on covered call sales, but let’s ignore them for now.)

What happens next:
If the stock price stays below $15.00 for the next year until the options expire on 2/1/27, you keep the $1,000 premium you collected and you’ll continue to own the stock.

After that date, you could sell the stock or you could hold onto the shares and sell another 10 covered call contracts and collect another premium.

If the stock price reaches $15.00 or higher at any time over the next year before the options expire on 2/1/27, you’ll be required to sell your shares to the investor who bought your covered call options. This is known as being “called out” of your stock position because you’re obligated to sell your shares at the $15.00 strike price to this investor. If you’re “called out”, the shares of stock you’re required to sell will be sold automatically by your brokerage firm so you won’t have to place a sell order.

You’ll make a profit of $2,000 on the sale ($15.00 less your original cost of $13.00 = $2.00 X 1,000 shares) plus you’ll keep the $1,000 premium you collected. The investor gets the 1,000 shares for $15.00 and will enjoy the benefits of any increase in the stock price above $15.00 as the new owner of the shares.

Your covered call position is considered an “open” position until the options either expire or you’re “called out” of your stock position.

As you move through the year from 2/1/26 to 2/1/27, you’re entitled to continue collecting all the dividends declared by the company during the year as long as you’re the owner of record on the day before the ex-dividend date. If you’re “called out” prior to the day before the ex-dividend date, the investor who bought your options will be the owner of record of the shares and will be entitled to collect the dividend instead of you.

Learn more about Dividends and the Key Dates for determining who is qualified to receive the dividend payments.

Why it matters:
Selling covered calls can generate extra cash from stocks that you already own while you continue to collect dividends. They work best when you’re bullish on a company but don’t expect a huge price jump. The option premium that you collect from selling them can help offset small losses if the stock price drops.

When you sell covered calls, you could be giving up significant gains if the stock increases beyond the strike price. Holding onto the stock could also result in additional losses if the stock price falls significantly and the option premium you collect for selling the calls is not enough offset these losses.

While most covered call trades typically work as described above, there could be rare instances where an open covered call trade involves the stock of the company you own being acquired. Let’s build on the above example to describe what would happen in the event of an acquisition.

What price per share will you receive if a company you own stock in is acquired?

When a public company you own stock in is purchased, there’s always a way to determine the price per share that you’ll receive as a shareholder.

If it’s a cash deal, the acquisition agreement will include a set amount of cash that you’ll receive for each share that you own.

If it is a stock-for-stock deal merger, you’ll trade your shares for a specific number shares in the acquiring company.

For mixed deals of cash and stock:
You’ll get a combination of cash plus a specific number of the acquiring company’s shares. The total combined value is calculated at the time of the transaction and it will be stated as a specific price per share of the company you own.

Regardless of how the deal is structured, confirm the value per share that you’ll receive by referring to the definitive purchase agreement, press releases, and company filings.

Why it matters:
If an acquisition of a company you own shares in is announced, additional negotiations could result in changes to the final price per share that you’ll be receiving when the transaction closes. Knowing the final acquisition price and how it compares to the strike price of the covered calls you sold will play a critical role in maximizing the value of your covered call trade.

If an acquisition is announced, is it possible the deal will be delayed or cancelled?

Yes.

Public company acquisitions in the U.S. are subject to possible review for antitrust violations by the Federal Trade Commission and the Department of Justice Antitrust Division. Either of these agencies could block or delay deals that are anti-competitive.

The Securities Exchange Commission requires extensive filings and disclosures. It also regulates the issuance of securities and shareholder communications for each deal.

Public company acquisitions outside the U.S. often require government approval to ensure that they are not anti-competitive. Other approvals could be required in specific countries if the acquisitions affect national security, infrastructure, data privacy, or economic stability.

Why it matters:
While most acquisition deals are ultimately approved, governmental regulators have the potential to delay or reject a proposed acquisition. If the closing date of the transaction is delayed or cancelled, the covered call options you sold could expire worthless. If that happens, you’ll have the option to keep the shares and the premium you collected when you sold the covered calls. Monitoring the expected and final closing date of the transaction will also play a critical role in maximizing the value of your covered call trade.

What happens if the company is acquired for a share price that’s below your covered call strike price?

As noted above, on 2/1/26, you’ve sold 10 covered call contracts on the 1,000 shares you own with a $15.00 strike price that expire on 2/1/27 and collected a $1,000 premium. When you sold these covered calls the stock was trading at $11.00 per share.

Now let’s assume on 6/1/26 that another company announces an agreement to acquire the shares of your company for $9.00 in cash at a time when your shares are still trading at $11.00 per share. The transaction is expected to close on 11/1/26.

While somewhat rare, companies are sometimes acquired for less than their recent market price, especially if they have some financial distress, high levels of debt or fail to meet expectations.

What happens next:
If the acquisition closes on 11/1/26 as scheduled, here’s what happens automatically:

The option expires worthless: The acquisition price of $9.00 is lower than the $15.00 strike price. The investor who bought the call options from you has the right to buy your shares for $15.00. However, since they can buy these shares in the open market instead for around $9.00, they won’t exercise their options and they will expire worthless.
You keep the premium: As the option seller, you keep the $1,000 premium you received when you initially sold the covered calls.
Your shares are sold in the acquisition: Your shares will be sold when the transaction closes for the acquisition price of $9.00 per share and will be converted to cash at this price.
You’ll have a net loss of $3,000: The sale of your 1,000 shares as part of the acquisition for $9.00 will result in $9,000 being transferred into your brokerage account. However, since you paid $13.00 per share for the stock, you’ll lose $4,000 on the sale. The $1,000 premium you received for selling the covered calls will partially offset this loss resulting in a net loss of $3,000.

What happens if the company is acquired for a share price that’s above your covered call strike price?

Continuing with the example above, on 2/1/26, you sold 10 covered call contracts on the 1,000 shares you own with a $15.00 strike price that expire on 2/1/27 and collected a $1,000 premium.

When you sold these covered calls, the stock was trading at $11.00 per share. At that time the call options were “out of the money” because the market price of the stock was $4.00 less than the $15.00 strike price of the options ($15.00 less $11.00). As result, the value of the options when you sold them and the premium you collected was based solely on the remaining 1 year of time value left on the options prior to expiration.

Now let’s assume on 6/1/26 that another company announces an agreement to acquire the shares of your company for $17.00. The transaction is expected to close on 11/1/26. The announcement of the proposed acquisition will cause the market price of the stock to increase to around $17.00 per share even though the acquisition transaction won’t close for five more months. Since the stock is now trading above the covered call strike price of $15.00, the options are now considered to be “in the money”.

What happens automatically (if you do nothing):

The call options increase in value: The proposed acquisition price of $17.00 is higher than the $15.00 strike price of the option which makes the call option a lot more valuable than the $1.00 per share you collected when you sold it.
You’ll be required to sell your shares: The investor who bought your covered calls will then exercise their right to buy your shares for the $15.00 strike price. This is known as being “called out” or having your shares “assigned” to the investor who bought your covered calls. That investor will be entitled to enjoy the benefit of the increase in the market price of the stock beyond the $15.00 strike price of the option up to the current market price of around $17.00 and beyond.
You’ll have a net gain of $3,000: The sale of your 1,000 shares being “assigned” to the option buyer at the strike price of $15.00 will result in $15,000 being transferred into your brokerage account. Since you paid $13.00 per share for the stock, you’ll make $2,000 on the sale. The $1,000 premium you received when you sold the covered calls will add to this resulting in a total net gain on your trade of $3,000.
Your profit on the assignment is capped at $15.00: You’ll miss out on any further price increase beyond the $15 strike price.

You might be able to buy back the call options you sold before you lose them:

There might be a limited window for you to buy the call options back before the shares are taken from your account at the $15.00 strike price.

To do it you’d have to act quickly before the buyer of the call options asks their broker to buy the shares from you. Some call option buyers choose automatic assignment. If the investor who bought your calls is set up this way, you’ll lose the shares immediately as soon as the acquisition is announced and the market price sails past the $15.00 strike price on its way to $17.00.

If the investor in your call options did not request automatic assignment, you might be able to buy back the options you sold (known as “buy to close”), but you’ll need to act fast.

However, you’ll pay the current market price to buy the calls back which will be much higher than the $1.00 price you received when you sold them because the market price of the stock is now higher than the strike price of the option. It would be reasonable to expect that it would cost you at least $2.75 per share which includes $2.00 of intrinsic value plus about $.75 for the remaining time value. ($17.00 market price less the $15.00 strike price of the option equals $2.00 of intrinsic value.)

Because of the possible acquisition premium, it will now cost you $2.75 X 1,000 shares or $2,750 to close out your covered call position. You would only consider doing something like this if you thought there was a chance that the acquiring company was considering increasing the purchase price of your stock beyond the proposed price of $17.00. Most investors in this situation would skip this and be happy with keeping the net gain of $3,000 and moving on to another trade.

High Yield Dividend Stocks Eliminate the Need to Beat the Market

How to avoid losing a lot of money selling covered calls

If a company acquires the stock of a company that you’ve sold covered calls on for more than the strike price of the options, you’re still in a good position to make money on some of the upside.

The bigger risk happens when the acquiring company acquires the stock of a company you’ve sold covered calls on for less than the strike price of the options. This situation is made worse if you’re already in a losing position on the stock before you sell the covered calls.

Here are some things to consider to avoid losing money on a covered call trade due to an acquisition:

Avoid selling longer term options (also called LEAPS), that don’t expire until far out in the future. Acquisition transactions sometimes take from 3 to 12 months to close. Selling shorter term covered calls with a maximum expiration of 6 months or less could help avoid trading losses from an unexpected acquisition.
There’s no substitute for doing research and due diligence on high yield dividend stocks before you buy them. This can help you avoid the risk of a fire sale where the acquiring company wants to pay a lower, bargain basement price for your shares.
If you suspect a low buyout below the current market price of a stock, don’t sell covered calls in the first place.

While there are a wide range of covered call trading strategies, this post is limited to the impact an acquisition can have on an open covered call trading position.

If you’d like to get started with high-yield dividend stock investing, here are other recent notes with more information to help you during these challenging times:

Buying High Yield Dividend Stocks is Defensive Investing

How to Stay in a High Yield Dividend Stock Trade for the Long Term

Check out other recent posts on our Substack:

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

Why You Should Care That the US National Debt Just Hit $38 Trillion

Dividend Stock Guru — Tue, 11 Nov 2025 18:05:04 GMT

On July 4, 2025, our national debt was $36.1 trillion.

The debt limit ceiling was increased that day by $5 trillion to $41.1 Trillion.

It sounded like a lot of headroom at the time, but it wasn’t.

Just 3 days later by July 8th, the government spent $373 billion to restore investments in certain government funds and other accounting measures that had been suspended temporarily in the months prior to the debt ceiling increase.

On October 22, our debt reached $38 trillion.

The speed at which this happened since July 4^th was staggering.

It took less than 2 months for the debt to increase by $1 trillion from $37 trillion in August. The only other time in our history where our debt increased faster was in January of 2022 during the pandemic, when it only took 1 month to add a trillion in debt.
The Joint Economic Committee has estimated that our total national debt grew over $69,000 per second over the past year.

How big can this debt get?

Who is going to say “no” when Congress wants to increase our debt?

What’s the worst that could happen as our debt continues to grow?

How big can this debt get?

1. Future estimates of this debt are shocking.

At current levels of spending, the debt is expected to hit $52 trillion by 2035.
We ran a $1.8 trillion budget deficit for the 2025 fiscal year that just ended in September.
This deficit was reduced by only $41 billion compared to the previous year.

Why it matters:
Reducing the national debt requires running a surplus on a sustained basis for many years into the future.

The last year the U.S. federal government ran a surplus was in 2001. The debt has been continually increasing for the past 24 fiscal years.

2. Our debt-to-GDP ratio continues to skyrocket.

(Country’s total public debt divided by its gross domestic product (GDP) X 100.)

Our current debt-to-GDP ratio is now 125%.
This is expected to grow to 156% by 2055.

Why it matters:
We cannot grow our way out of this. Reducing this debt is going to require real spending cuts.

3. Tariffs won’t get us close to a balanced budget

Tariffs generated $195 billion in revenue in 2025 compared to $77 billion in 2024.
This is less than 11% of the $1.8 trillion deficit for 2025.

Why it matters:
While tariffs have brought in additional revenue, their ability to help reduce the national debt will decline over time as trade agreements are finalized and businesses find legitimate ways to avoid or reduce these tariffs.

Until we’re able to put together many consecutive years where we run a surplus, we’re simply kicking the can down the road and postponing the day of reckoning.

Who is going to say “no” when Congress wants to increase our debt?

Which of the following groups are the most likely to slow or prevent growth in the national debt?

1. Politicians

In 2010, elected officials in Greece were highly resistant to spending cuts they were required to make as part of a bailout proposal from the European Union and the International Monetary fund.
Earlier this year, our Congress was highly resistant to even the most basic cuts needed to eliminate fraud, waste, and abuse.
A $9 billion package of DOGE spending cuts narrowly passed in the House and Senate by a mere 3 votes in each body – these cuts represented ½ of 1% of the $1.8 trillion deficit for 2025

2. Voters

To balance our budget, voters will have to experience cuts to programs they care about.
History tells us that voters favor big spenders compared to cost cutters in government and they don’t have the stomach for spending cuts.

3. Federal Reserve

When the Federal Reserve buys our debt, this makes it easier for the Treasury to borrow more money without raising interest rates.
When monetary policy causes the Federal Reserve to lower interest rates, that can also lead to additional borrowing and increases in our national debt.

4. Treasury

The Treasury issues new government debt such as Treasury bills to finance government operations when tax revenue is not enough.
It does not directly cause the national debt to grow but is required to borrow in response to spending approved by Congress.

5. Investors who buy our public debt

Includes individuals, banks, pension funds, and corporations along with foreign investors including the governments of China, Japan and the United Kingdom among others.

These investors are primarily motivated by self-interest.
As we continue to pile on massive amounts of debt, these investors will demand higher interest rates.
Higher interest rates are a huge factor in the growth of our debt as annual interest payments on our debt now exceeds defense spending.

Why it matters:
All debts are repaid and defaulting on this debt is not an option.

Out of the groups listed above, only investors demanding higher interest rates are in the best position to encourage Congress to stop running deficits. However, this is not a meaningful speed bump and Congress is unlikely to be influenced by this group.

Does Your Stock Trading Strategy Need an Adjustment?

What’s the worst that could happen as our debt continues to grow?

1. More inflation

The Federal Reserve might expand the money supply to buy more government debt, which could lead to higher inflation.

2. Increased borrowing costs

It could become a lot more expensive for the government to borrow money. This could lead to higher interest rates for consumers on mortgages, car loans, and credit cards.

3. Market volatility

A debt crisis could cause significant drops in the stock market, affecting retirement savings and other investments including high yield dividend stocks.

Why it matters:
Any of the above could trigger civil unrest and the collapse of the civil society leading to lawbreaking, looting and rioting.

If you think that’s unlikely, we’ve had a sampling of this on a smaller scale in the aftermath of hurricanes and other weather-related events.

Law and order can breakdown quickly when basic human needs aren’t being met.

Recently, during the current government shutdown, some public figures were suggesting that people who were cut off from SNAP food benefits consider simply stealing what they need from large, big box supermarkets.

If the civil society collapses, your government spending priorities and political party won’t matter. Everyone will feel the impact in their financial assets including stocks, bonds, and other investments.

Substack has great writers in the personal finance space.

These writers know how to balance a budget in a household and their wisdom might be helpful to the federal government as it looks for ways to reduce our national debt.

There might also be writers on this platform who have good ideas on emergency preparedness – steps that everyone should consider in the event of a financial crisis.

This is not a typical topic that I usually write about on Substack but since no one will escape the impact of this debt, it’s important to draw attention to it.

If you’d like to get started with high-yield dividend stock investing, here are other recent notes with more information to help you during these challenging times:

Trading for Income Tames Our Greed Impulse

Selling Covered Calls Helps You Stay in Trades Longer

Buy Lower Priced High Yield Dividend Stocks

Learn more from other articles about topics covered in this post:

US hits $38 trillion in debt, after the fastest accumulation of $1 trillion outside of the pandemic

Trump’s tariff revenue is soaring off a ‘significant increase,’ budget watchdog says – but the $38 trillion national debt still looms

If you’ve enjoyed this post, check out other recent posts on our Substack:

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

Read our company stock reports

Is a Stock Market Crash Hiding Behind AI?

Dividend Stock Guru — Fri, 31 Oct 2025 03:52:55 GMT

The promise of the Internet couldn’t stop the dot.com crash in 1999.

The rise of mobile phone technology was unable to prevent the 2007 stock market crash.

As we finish up 2025 and the stock market continues to trade at all-time highs, are skyrocketing AI valuations masking the risk of a stock market crash?

Are we living through an AI bubble where stock prices exceed the technologies long-term value?

If it takes too long to commercialize AI, will all stocks suffer?

What does history tell us if we compare 1999 and 2007 to now?

What’s happening today that we should also consider?

Are consumers and businesses ready to pay for AI?

What you can do as an investor to protect yourself in the event the AI bubble bursts

What does history tell us if we compare 1999 and 2007 to now?

1. Infrastructure spending won’t prevent markets from crashing.

In 1999, growing Internet traffic led to a build out of the fiber optic cable network.
The explosion in mobile phones in 2007 required updating networks from 2G to 3G.
Today, AI needs a massive expansion in the electrical grid to power data centers along with advanced cooling techniques to deal with the heat produced by high-density AI hardware.

Why it matters:
Surges in new technology and infrastructure in 1999 and 2007 still couldn’t prevent the markets from crashing.

Today, we’re significantly behind on building the infrastructure needed for AI. Globally, projections show that AI data centers will double electricity use by 2030.

This power needs to be from reliable sources that can handle high electrical loads 24 hours a day such as nuclear, natural gas, and hydro.

Recently, there’s been worldwide push-back to limit or eliminate the ability of AI data centers to draw power from the existing electrical grid especially in areas where there is a high concentration of these facilities. These data centers have contributed to surging electrical bills and grid instability leading to potential blackouts.

AI valuations going forward will be heavily dependent on our ability to provide electrical power.

2. Shiller price earnings ratios have been high prior to major stock market crashes.

(This ratio divides the current stock market price by the average of the last 10 years of inflation-adjusted earnings.)

In late 1999, this ratio reached an all-time high of 44.19.
Prior to the 2007 stock market crash, this ratio peaked at 27.5.
Earlier this month, the Shiller Price Earnings ratio was 39.51.

Why it matters:
We’ve passed pre-2007 crash valuations and we’re approaching the high valuations that preceded the 1999 crash. The average Shiller price earnings ratio is around 15-17, though this varies over time. Higher ratios increase the risk of a crash.

3. Cash flows and profitability are critical for a strong stock market.

In the 1999 market there was a lot of speculative investment in Internet startups that were not profitable or had negative cash flow.
Prior to the 2007 crash, many companies were highly profitable with strong cash flows. This helped them survive failures in the financial sector related to subprime mortgages.
Today many leading companies are highly profitable with healthy cash flows and margins.

Why it matters:
Just as in 2007, the largest companies today have strong cash flow.

That gives them the flexibility needed to build their own power plants if needed and helps support the higher valuations in the stock market today.

What’s happening today that we should also consider?

1. AI stocks and startups are trading at high valuations because of investor fear of missing out rather than strong fundamentals like revenue and earnings per share.

Since 2023, AI startups have tripled, but only a small fraction show sustainable profits.

Adding to the risk is the fact that individual investors are piling up margin debt at record levels.

Why it matters:
If stocks fall, forced selling from margin calls could trigger a massive selloff.

2. AI-driven gains account for nearly 80% of recent stock market advances with only a small group of stocks participating in the rallies.

Why it matters:
Over-speculation, fueled by record leverage, could lead to deflation, mass layoffs, and economic collapse if the AI bubble bursts.

3. A staggering 95% of AI pilot projects fail to deliver measurable financial returns, up from previous years. This year, 42% of AI pilot projects have been abandoned. That’s up from 17% in 2024.

Why it matters:
Companies are pouring billions into AI but hype appears to be outpacing real-world adoption. Some critics argue that with AI still in its infancy, widespread corporate use is potentially over 5 years away.

4. Tech giants are pouring hundreds of billions of dollars into capex for data centers, chips and energy at a time when projections are showing $2 trillion in overcapacity. This is contributing to higher energy prices and water waste for technology that is not yet needed at scale. AI graphics processing units (GPUs) are expensive and burn out quickly under peak loads which adds to the costs.

Why it matters:
A large amount of AI-related capex could fail leading to reduced growth and lost billions. Some companies will commit to inefficient data centers or outdated chips that will result in a dead-end investment.

Are consumers and businesses ready to pay for AI?

1. Consumers have been slow to adopt AI. Menlo Ventures’ consumer AI survey of 5,000 US adults revealed nearly 2 billion global AI users, but only $12 billion in spending. Platforms like ChatGPT report millions of paid subscribers, but growth has slowed from the explosive 2023-2024 levels.

Why it matters:
Consumers around the world are participating in a massive worldwide trial but it’s not leading to meaningful adoption rates or a willingness to pay for AI. Consumer spending remains low relative to hype and individuals are often sticking to free tiers instead of paying for more advanced features.

2. Businesses are moving faster with AI with corporate customers planning to increase AI budgets 88-92%. Corporate employees use AI at a 90% rate but only 40% of their usage is through a paid subscription.

Why it matters:
While businesses are adopting AI faster than consumers, monetization is still lagging.

3. The Magnificent 7 group of the largest, influential technology companies are significantly ahead of customer demand, investing billions in AI infrastructure to anticipate future growth. Some estimates suggest that these investments are outpacing realized demand by 2-5X.

Why it matters:
These companies are following a “build it and they will come” dynamic. However, if adoption doesn’t accelerate there is a significant risk of overcapacity.

What you can do as an investor to protect yourself in the event the AI bubble bursts:

Don’t be afraid of missing out. Avoid chasing over-hyped AI stocks.
Constantly monitor end-user adoption of AI for both businesses and consumers.
Research and monitor consumer and corporate surveys that are conducted to measure enthusiasm, willingness to pay, and growth indicators for AI.
Don’t chase risky, speculative stocks. Stay focused on quality stocks with a proven history.
Don’t fall for the hype that you might miss out on the excitement and growth which could lead you to invest in high-risk companies that don’t have a real business yet.
Continue to look for investment opportunities outside of the AI space.

Diversification will be your friend during periods of high volatility in the market.

Properly researched high yield dividend stock can give you up to an 8% annualized return instead of the bumpy, more volatile ride to a 10% return that a long-term “buy and hold” strategy with an index fund can offer.

The extra 2% return from an index fund over the long-term is not worth the higher level of risk and uncertainty.

High yield dividend stocks will provide steady dividend income that can help you pay for life events and help you avoid having to sell your stocks if there’s a crash.

You’ll also have more personal control on when you buy and sell stocks in the market.

High Yield Dividend Stock Investors Should Care About Volatility

If you’d like to get started with high-yield dividend stock investing, here are other recent notes with more information to help you during these challenging times:

Stop Trading on Hot Tips

With CD Interest Rates Dropping, Now’s a Good Time to Look at High Yield Dividend Stocks

Too Much Exposure to a Small Number of Companies in the S&P 500?

Don’t Buy Overpriced Stocks

Learn more from other articles about topics covered in this post:

Can US infrastructure keep up with the AI economy?

If you’re considering buying one of the stocks in the articles above, let me know before you buy.

I have a long list of in-depth research reports I’m working on and I’ll be happy to move a company you’re considering to the top of the priority list!

If you’ve enjoyed this post, check out other recent posts on our Substack:

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

Will Shareholder Lawsuits Recover Your Losses After a Dividend Cut?

Dividend Stock Guru — Wed, 22 Oct 2025 03:46:55 GMT

You did everything you were supposed to do before buying a high yield dividend stock.

Suddenly, you’re surprised to see the news that the dividend you were expecting is going to be reduced or eliminated.

Now you’re facing a decline in the price of the company’s stock along with reduced or zero dividend payment coming in while you’re trying to decide whether to hold or sell the stock.

About a week later you notice a press release from a law firm that’s planning to file a shareholder class action lawsuit against the company that cut or eliminated your dividend.

You respond to this press release and fill out the law firm’s form to document the amount of your losses since the dividend cut.

With this step completed, is it reasonable to expect that you’ll recover a meaningful portion your trading losses due to the dividend cut?

Here are some points to consider to help you answer that question:

1. It’s difficult for shareholders to win a lawsuit challenging a dividend cut.

The Business Judgment Rule is a legal doctrine that protects a company’s board of directors from liability for business decisions including dividend cuts, provided they were made in good faith and for a rational business purpose.

Why it matters:
Proving that the board acted in bad faith is difficult to do because there’s a wide variety of valid business reasons for cutting a dividend. Some of these could include:

Paying down long-term debt to improve a company’s leverage ratios.
Freeing up cash to acquire other companies or businesses.
Stock buybacks to reduce the number of shares outstanding to improve earnings per share.

2. A broader based lawsuit is usually required for the class action lawsuit to be successful.

This usually requires that the lawsuit be based on securities fraud and not just the dividend cut itself.

That would require proving that the company’s executives made false or misleading statements about its finances. In this example, the dividend cut might help prove that the company’s earlier statements were inaccurate and resulted in investor losses.

Why it matters:
A broader, more complex lawsuit based on securities fraud will take a lot longer to resolve and will increase the amount of legal fees needed to present the case.

Typical class action fees are 20-33% of settlements plus expenses.

These growing legal bills will significantly reduce the net amount of any settlement available to help investors recover some of their losses.

3. Over the past 5 years, no shareholder class action lawsuits against a publicly traded company exclusively for cutting or eliminating its dividend was successful.

These lawsuits frequently face dismissal or remain ongoing without resolution because dividends are found to be discretionary management decisions which makes it challenging to prove securities fraud.

Why it matters:
This 5-year history suggests that the possibility of investors recovering even a portion of their losses from a dividend cut is unlikely.

Based on the above, here’s what you should do after a dividend cut:

Don’t plan on recovering any of your losses from a shareholder class action lawsuit.
Determine if the company still has strong fundamentals and problems that are more temporary in nature that will allow it to recover from the dividend cut.
Consider selling covered calls so that you can exit the trade with a profit.
Never sell the stock on the day the dividend cut is announced. Always allow some time to pass to give the stock some time to recover its value.

Are all Dividend Cuts Created Equal?

There will continue to be more in the news about shareholder lawsuits in response to dividend cuts.

The recent dividend cut by Dow Inc. has triggered pending litigation but don’t expect a positive outcome for investors.

Learn more about this from our recent post:

Properly researched high yield dividend stock can give you up to an 8% annualized return instead of the bumpy, more volatile ride to a 10% return that a long-term buy and hold strategy with an index fund can offer.

The extra 2% return from an index fund over the long-term is not worth the higher level of risk and uncertainty.

High yield dividend stocks will provide steady dividend income that can help you pay for life events and help you avoid having to sell your stocks if there’s a crash.

You’ll also have more personal control on when you buy and sell stocks in the market.

If you’d like to get started with high-yield dividend stock investing, here are other recent notes with more information to help you:

Don’t Trade During the 1^st Hour of Trading

Don’t Trade In and Out of the Market, Try to Buy for the Long Term

High Yield Dividend Stock Investing Isn’t Day Trading

High Yield Dividend Stocks Will Give You the Confidence to Trade Long Term

When you Buy High Yield Dividend Stocks, Don’t Reinvest the Dividends!

Learn more from other leading financial writers about topics covered in this post:

Dow faces three investor lawsuits alleging deception over tariffs, dividend assurances

If you’re considering buying one of the stocks in the articles above, let me know before you buy.

I have a long list of in-depth research reports I’m working on and I’ll be happy to move a company you’re considering to the top of the priority list!

If you’ve enjoyed this post, check out other recent posts on our Substack:

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

Investors 21-44 Years Old Have Good Reasons to be Intimidated by the Stock Market!

Dividend Stock Guru — Wed, 15 Oct 2025 03:42:51 GMT

A Bankrate poll in January found that younger Americans feel like investing is a daunting process.

About 24% of millennials and 29% of Generation Z members who were surveyed say that stocks are not their preferred way to invest because the stock market is too intimidating.

Some financial advisors feel that this worrying about downside risk in the stock market is misguided and that it causes young investors to put all their money in cash and bonds.

Josh Brown, CEO of Ritholtz Wealth Management stated that “when you’re young, worrying more about the downside than upside is probably the biggest mistake” young investors make.

He’s not alone.

Brown along with plenty of other investing experts feel strongly that young people should be 100% fully invested in the stock market and should not have any cash positions or bonds in their investment accounts.

These financial experts base their point of view on the following factors:

Younger investors have plenty of time to build wealth.
Stocks have outperformed cash and bonds over very long periods of time.
If younger investors lose money, there’s plenty of time to recover from these losses.

These experts recommend that young investors be 100% invested in an index fund that tracks the overall stock market and that they should avoid picking individual stocks.

Recently, investing experts on a financial podcast were advocating for young investors to have a “buy and hold” strategy with up to a 50-year time horizon.

While this long-term buy and hold strategy has a track record of success, young Americans have good reasons to have serious concerns about following this strategy in the future:

1. Younger adults are finding it harder to find good paying work even with a college education.

Fewer companies are coming to college campus to hire and many students don’t have the education or work experience needed for the jobs of the future, not to mention the coming loss of jobs due to AI.

Many have graduated with a significant amount of student loan debt and are unable to set aside even small amounts for long-term investing.

Why it matters:
This long-term buy and hold strategy may only be available to those with very high six figure incomes. Many young investors don’t have the extra income that can be put at risk in the stock market.

2. Past performance does not guarantee future results.

There is absolutely no guarantee that the stock market will continue its long, gradual, and sometimes bumpy sideways and upward path for years to come.

Young investors are fully aware of this as the current bull market approaches its third birthday.

The London Business School analyzed the worst periods for investors during the 125-year period from 1900 to 2024 and here’s what they learned about the worst stock market collapses in the United States:

The 1929 stock market crash wiped out 80% of all the value in the market. It took fifteen and a half years for the market to fully recover these losses!

There were 3 other peacetime stock market crashes with significant losses:

It took 10 years to fully recover the losses from the bear market in the early 1970s that was due in part to the OPEC oil embargo.
The dot.com bust from 2000 to 2002 generated losses that took the market seven and a half years to fully recover from.
When the stock market collapsed during the 2008 financial crisis, it took 5 years to fully recover those losses.

As the current bull market approaches end of life, it’s important for investors to remain cautious.

Why it matters:
If you don’t think history can repeat itself, consider the risks on the horizon now:

The National Debt of the United States is approaching $38 trillion and the country hasn’t balanced a budget in years.
Congress continues to overspend and devalue our currency which creates inflation. That’s one of the reasons why the price of gold recently passed $4,000 per ounce.
The U.S. dollar is at risk of losing its position as the world’s reserve currency as more foreign countries look for ways to transact business in their own currencies.
The war in Europe continues while other threats of war remain in the Middle East and in the Asia Pacific region.

3. While young investors might have the time, they do not have the liquidity to ride out long periods with very large investing losses that have occurred during the worst stock market collapses.

As they get older, there will be a combination of real-life events that could limit the amount they have available to invest or that could require selling investments during a downturn including:

Saving enough to take full advantage of their employer’s 401K match.
Buying a home.
Replacing a vehicle.
Starting a family.
Paying off credit cards.
A serious illness.
Dividing assets in the event of a divorce.

Why it matters:
Experts will recommend not putting money at risk in the market that you can’t afford to lose. While this is good advice, it takes more than money set aside in a one-year emergency fund to cover many of the items listed above.

During these challenging life events, younger investors will need nerves of steel to resist selling stock market investments at a loss during periods of downward or sideways movement in the market.

As a result, it’s not hard to see why young investors view this 100% long-term buy and hold investing strategy as very high risk.

4. When investors eventually approach retirement, it can be extremely difficult to time the market and rebalance their portfolio towards lower risk investments.

Many older investors nearing retirement during the 2008 financial crisis simply had to postpone their retirement for up to five years while the market recovered.

A lot of health issues can occur for older individuals as retirement approaches and some of these issues could require selling off assets at a loss while the stock market is still recovering.

Why it matters:
The large losses that are possible during periodic downturns in the stock market that are possible at any age, can make this a very high-risk strategy.

What is High Yield Dividend Stock Investing?

If you’re an investor 21-44 years old, high yield dividend stocks can give you valuable trading experience with a lot less risk and help you trade with confidence.

Here’s an earlier post with an overview of high yield dividend investing:

A properly researched high yield dividend stock can give you up to an 8% annualized return instead of the bumpy, more volatile ride to a 10% return that a long-term buy and hold strategy with an index fund can offer.

The extra 2% return from an index fund over the long-term is not worth the higher level of risk and uncertainty.

High yield dividend stocks will provide steady dividend income that can help you pay for life events and help you avoid having to sell your stocks if there’s a crash.

You’ll also have more personal control on when you buy and sell stocks in the market.

If you’d like to get started with high-yield dividend stock investing, here are other recent notes with more information:

Don’t Trade In and Out of the Market, Try to Buy for the Long Term

High Yield Dividend Stock Investing Isn’t Day Trading

With CD Interest Rates Dropping, Now’s a Good Time to Look at High Yield Dividend Stocks

High Yield Dividend Stocks Will Give You the Confidence to Trade Long Term

Learn more from other leading financial writers about topics covered in this post:

This is the ‘biggest mistake’ young investors make, Josh Brown says

Are the good times about to end?

If you’re considering buying one of the stocks in the articles above, reach out to me and let me know before you buy it.

I have a long list of in-depth research reports I’m working on and I’ll be happy to move a company you’re considering to the top of the priority list!

If you’ve enjoyed this post, check out other recent posts on our Substack:

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

Are All Dividend Cuts Created Equal?

Dividend Stock Guru — Wed, 08 Oct 2025 20:58:41 GMT

If you trade high yield dividend stocks long enough, sooner or later you’re going to own a stock where the company cuts the dividend. When it happens, you’re going to have to act quickly.

Dividend cuts happen when a company reduces or eliminates the most recent dividend that it has been paying to its shareholders.

These dividend cuts are painful because they deliver a one-two punch:

The dividend payment you were counting on for income is reduced or eliminated.
The price of the company’s stock drops and your original investment is now in a losing position.

Before we take a deeper dive on dividend cuts, it’s important to remember how to address the concerns some investors have about trading high yield dividend stocks:

If you own a high yield dividend stock and experience a dividend cut, here are some ways respond to it:

Step 1: Determine what kind of dividend cut it is.

Some dividend cuts are better than others.

Positive features some companies may continue to demonstrate after a dividend cut:

Its financial health and pricing power remains strong.
The business continues to generate consistent cash flow.
The reasons for the dividend cuts are temporary in nature:

Temporary reasons for dividend cuts can include:

A business disruption that the company has the potential to recover from.
The dividend cash is going to be diverted to pay down debt or used to make a strategic acquisition.

Negative warning signs other companies will flash after a dividend cut:

The business is struggling with declining earnings and negative free cash flow.
The company’s business model has become unstable with very limited pricing power.

Why it matters:
If you’ve done thorough research before buying the stock, there’s a good chance that the company will continue to have strong fundamentals. That will allow it to continue to demonstrate positive features and to have hidden value that you can take advantage of even after the dividend cut.

This hidden value may give you the ability to continue holding the stock until you can exit the trade at a breakeven price or even at a profit so you can move on to another dividend paying stock.

If the stock is optionable, you may also be able to sell covered calls and allow you to exit the trade with even more profit.

Step 2: What you should do in response to a dividend cut

Reassess your investment:

Are the reasons you bought the company still valid today?
Would you be willing to buy the company’s stock today at current market prices after the dividend cut?

Why it matters:
If you can answer “yes” to these questions, there is still a good chance of exiting this trade with a profit even after the dividend cut.

If the answer to these questions is “no”, it’s time to consider exiting the trade.

If you decide to exit the trade, do not sell the stock on the day the dividend cut is announced. Give the stock some time to recover some of its value.

Step 3: Learn something from this trade.

If you end up losing money on a trade like this, do things differently with your next investment.

Create a checklist with the following items:

Set goals before you trade:

Set Goals Before Trying to Buy High Yield Dividend Stocks in the Market

Don’t chase high yields - try to avoid stocks that have a dividend yield greater than 8%:

Don’t Chase Stocks Just Because They Have a High Dividend Yield

Do extra due diligence if you’re considering Real Estate Investment Trusts (REITs) and Business Development Companies (BDCs).
Never pay full market price for any stock you’re considering – always use limit orders.
Don’t buy a stock based on a hot tip.

Stop Trading on Hot Tips

Why it matters:
High yield dividend stocks become riskier as the dividend yield increases. Some REITs and BDCs are high risk dividend traps that lure you in with a higher yield only to cut the dividend after you own it.

The best trades usually are winners right from the start. No matter how much hype you read about a stock in the news, there will be periods when there is no news in the market driving up the price.

On a “no news day” there is a very good chance your limit order will fill at a price significantly below the current market price.

Getting into the trade at a better price will give you the headroom you need to stay in the trade even if you experience a dividend cut.

Not All Dividend Stocks Are Safe. Here’s How to Avoid Dividend Traps

Learn more from other leading financial writers about topics covered in this post:

Why Dividend Cuts Aren’t Always Bad: A Case Study from 3M

If you’re considering buying one of the stocks in the articles above, reach out to me and let me know before you buy it.

I have a long list of in-depth research reports I’m working on and I’ll be happy to move a company you’re considering to the top of the priority list!

If you’ve enjoyed this post, check out our other recent posts on Substack:

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

High Yield Dividend Stocks-Why Some Investors Don’t Like Them

Dividend Stock Guru — Thu, 02 Oct 2025 20:57:51 GMT

You’ll see a wide variety of investing approaches on Substack from some great minds on here.

Even if you don’t like a particular investing strategy, it’s important to learn something from them.

Why?

Because there’s always something in an alternative approach that might also work with your investing strategy.

When you see an investing article that contradicts what you’re doing, use it to fine tune your own strategy as we’re going to do in this post.

Before we get started, here’s a reminder of what high yield dividend stock investing is:

Below are some of the most common arguments against high yield dividend stocks that you’ll see in financial articles and how you can improve your strategy to address these concerns.

Argument 1: You can’t chase high yields.

Yield at its most basic level always reflects risk and it prices in the risk of default.

So, your alarm bells should be going off if you’re considering a high yield dividend stock that pays a 12% annualized dividend.

How to improve your strategy:
Look for high yields - not ultra, high yields.

· A more reasonable target for high yield dividend stock investing is an 8% annualized dividend yield.

· If you’re going to violate the 8% rule and pursue a higher yield, have a good reason for doing it based on thorough research of the company’s ability to sustain its dividend and maintain a stable share price.

Why it matters:
An 8% return is still good if you’d like to avoid investments such as long-term ownership in an S&P 500 index fund with a long-term return of 10% that could have significant drops every 5 years or so or could go through a period of several years with a return of zero.

If you use a stock screener to filter through thousands of publicly traded companies, you’ll come up with a lot more stocks to consider that pay an 8% dividend than you will for those with a higher dividend yield.

Argument 2: Dividends result in unexpected taxable income and you can’t control when they’re paid out.

Dividends generate taxable income for stocks held in a taxable account that will be taxed at either ordinary or capital gain tax rates.

While true, other investment types such Exchange Traded Funds (ETFs) and mutual funds also create taxable income on both capital gains and income, but the timing for when this income is taxable may be different.

It’s also true that companies determine when a dividend will be paid out, not you the investor.

How to improve your strategy:
Do as much of your high yield dividend stock trading as possible in retirement accounts instead of in a brokerage account and be sure to plan for taxes.

· If you’re converting a traditional IRA to a Roth IRA, convert dividend stocks to the Roth before other types of fixed income investments.

· If you’re retired and need to do withdrawals, take them from taxable accounts first. Dividend stocks you’re holding in a Traditional or Roth IRA account can continue to grow tax free.

· Ask your brokerage if it’s possible to have Federal and State taxes withheld on dividend payments. If not, make estimated quarterly tax payments to avoid underpayment penalties.

Why it matters:
While each investment type has its own tax advantages, don’t run from a stable flow of dividend income just because it’s taxable.

While it’s true that you can’t control the timing of the dividend payment, you do have control over when it’s time to sell the stock and to incur the capital gain or the loss.

Why the Price of a Stock Drops on the Ex-Dividend Date

Argument 3: The value of a company drops by the amount of the dividend paid out.

This is true. You’ll see this happen on the ex-dividend date for a stock.

Learn more about the key dates for dividends in our recent post:

A dividend payment reduces the value of a company just like any other payment does.

If the ex-dividend date happens on a day when the markets are flat but stable, you’ll see the stock price of the company fall by approximately the amount of the dividend payment that is in progress.

However, this reduction is usually temporary and a company with a good, solid long-term track record will hold or increase its value to more than offset this decrease over time.

How to improve your strategy:
There’s no substitute for finding, researching, and analyzing the best companies with high yield dividend stocks.

Don’t buy stocks based only on hot tips or because you read about a company in a financial article.

Stop Trading on Hot Tips

Don’t pay full market price and use a limit order.

Never buy a stock on a day when it is up on favorable news. Wait a few days for the stock to enter a “no news” period when you’ll be able to buy it at a better price.

Why it matters:
This small decrease in the price of the stock is just one of the many factors you’ll face as an investor.

Others include stock market and company specific risks. Just buying in at a lower entry price using a limit order will more than offset the small decreases in the stock price you’ll see on the ex-dividend date.

Doing your own research to find a quality company will help mitigate these risks and help you stay in these trades over the long term while you’re collecting the dividend.

When you see an investing strategy that disagrees with yours, lean into it and learn how you can improve your own strategy as we’ve done above.

Seven Hidden Downsides of Dividend Investing, From a Financial Advisor

Learn more from other leading financial writers about topics covered in this post:

What You’re Getting Wrong About Dividend Investing

If you’re considering buying one of the stocks in the articles above, reach out to me and let me know before you buy it.

I have a long list of in-depth research reports I’m working on and I’ll be happy to move a company you’re considering to the top of the priority list!

If you’ve enjoyed this post, check out our other recent posts on Substack:

Subscribe for free to receive new posts and to stay informed on the latest reports we’ve published on high yield dividend stock companies.

Is High Yield Dividend Stock Investing Trading for the Long Term?

Dividend Stock Guru — Wed, 24 Sep 2025 20:58:32 GMT

For most of us, the most common image that comes to mind of long-term investing is an investment in an S&P 500 index or exchange traded fund (ETF) over many years.

(The S&P 500 index tracks the performance of the 500 largest publicly traded companies in the United States.)

Historically this has proven to be effective long-term strategy for many investors to earn an average return of around 10% per year but it’s not a consistent annualized return.

This strategy is not risk free and it does require some discipline and maintenance:

· Every 5 years or so, you could face a temporary but major pullback in the value of your investments.
· Even if your portfolio doesn’t drop from time to time, you could still face multiple years where the return of your portfolio is 0%.
· Drops in your portfolio value or periods of flat growth might come at a time when you have large, unexpected cash flow needs. That could lead to draw downs at a time when you should stay invested in the market.
· Your portfolio should be reviewed and re-balanced across investment types at least annually to match your tolerance for risk.
· You might not have the nerve to remain in the market when many other investors are selling. If you panic and sell, you won’t net out to an average, annualized return of 10%.

High yield dividend stock investing is not day trading and it can be a long-term strategy if it is done correctly.

As a reminder, here’s an overview of high yield dividend stock investing from our recent post:

Here’s how to trade high yield dividend stocks over the long term:

Buy a great company.

Do your homework and thoroughly research the company before you buy.

Focus on the company’s ability to keep paying its dividend while the price of the stock continues to hold its value.

Why it matters:
If the company cuts its dividend, the stock price will fall and you won’t have the dividend payment to help you recover some your losses while you’re waiting for the stock price recovers to a level where you can sell it.

Research and buy a great company in the first place, and you’ll significantly improve your chances of staying in the trade for many quarters while you’re collecting the dividend.

If this goes on long enough, you’ll be a long-term investor over the life of the trade.

Buy the stock at a good entry price.

If you buy a high yield dividend stock the same day it is featured in several financial publications, you’re not getting in at a good entry price.

Never fall in love with a stock. Be disciplined and wait for the news in the market and the news about the company to settle down. Trust me, the price of the stock will fall on a no news day.

Understand the most recent price support levels for the stock. You’ll notice certain price levels for a stock that act as support or a floor that helps to prevent further declines in the price of the stock.

Don’t buy a stock unless you can buy it on a pullback near one of these recent support levels.

If the stock price doesn’t drop far enough, don’t buy it. Find another stock and move on.

Why it matters:
Almost all winning trades in the stock market show their true colors almost immediately.

Get in at a good entry price and you’ll have some protection against downside moves in the price of the stock. That will allow you to avoid losses and to stay in the trade so you can collect dividends over the long term.

Find lower priced stocks preferably between $10 and $40.

Stocks less than $10 with high dividend yields are likely to be micro-cap stocks where the volume of shares traded during the day is very low. Because these stocks aren’t as liquid as larger companies are, it might be harder to sell them on a day when you want to exit the trade.

Stocks over $40 with high dividend yields are rare. But if you do find one, it’s going to use up too much of the money you have available to invest. Staying under $40 will free up money that you can use to diversify into another industry.

Why it matters:
Buying high yield dividend stocks in the $10 to $40 price range will help ensure that there’s less volatility in the stocks you buy at the lower end, while allowing you to diversify across multiple industries.

Lower priced stocks will help you stay in these trades over the long term while you’re collecting the dividend.

Don’t worry about the growth potential of the stock.

Focus on picking a quality company with a high dividend yield that has the best potential to continue paying the dividend while the stock price continues to hold its value.

If you get some growth in the price of the stock, that’s great, but it shouldn’t be your primary focus when you’re first buying the stock.

Why it matters:
In general, you’ll pay more for stocks with a lot of growth potential.

The higher price per share will lower your dividend yield. That’s why stocks trading for over $40 have lower dividend yields. It’s simply a matter of math.

Buying lower priced stocks will allow you collect larger dividends over the long term.

Hold onto the stock as long as you’re meeting your goals.

Don’t over trade.

If the stock you bought is holding its value while it continues paying its dividend, don’t sell it.

Sell only if the dividend payment is at risk or if the price of the stock is at risk of dropping below the price you paid for it.

Finally, there are ways to exit a trade where you’ve lost a bit of money in the price of the stock even while you’ve been collecting the dividend. (We’ll be covering that in future posts.)

Why it matters:
Finding the best high yield dividend stocks takes a lot of research to do it correctly.

There’s not a huge inventory of companies out there with high dividend yields to consider.

If you’re in a good trade, stay in it for the long term and don’t overtrade.

Follow these guidelines and be disciplined with your trading.

It’s entirely possible that you could end up holding a well-researched, high yield dividend stock for many years as a long-term investor.

At that point, no one will be able to call you a short-term investor or a day trader.

More importantly, we think you’ll like your results.

Subscribe now to the Dividend Stock Guru Substack!

13 Best Dividend Stocks to Buy Under $20

Learn more from other leading financial writers about topics covered in this post:

3 Dividend Stocks to Hold for the Next 5 Years

If you’re considering buying one of the stocks in the articles above, reach out to me and let me know before you buy it.

I have a long list of in-depth research reports I’m working on and I’ll be happy to move a company you’re considering to the top of the priority list!

If you’ve enjoyed this post, check out our other recent posts on Substack:

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How to Survive September if it’s as Bad a Month for the Stock Market as it has Historically Been

Dividend Stock Guru — Sun, 14 Sep 2025 23:41:37 GMT

The month of September has been a historically bad month for stock market returns in the United States and in foreign markets too. These poor returns have been getting worse over time.

According to RBC Wealth Management, September has been the month with the worst average monthly performance of the S&P 500 since 1928 with an average loss of -1.2%. This under performance has happened about 55% of the time over the past 97 years.

That might look like a small decline, but it’s a huge difference compared to all other months in the year.

These poor September results aren’t limited just to the USA.

Canada, United Kingdom, Germany, France, Hong Kong, Italy, Australia, and Japan also have a long history of poor September returns.

It’s been called the September Effect.

What is the September effect?

The September Effect is the long-term track record for the stock market to underperform during the month compared to other months.

What are some of the causes of the September effect?

There are many theories on why stocks are down in September, but none of them are reliable and they’re certainly not foolproof:

Profit taking after summer vacations:
Investors and portfolio managers going on vacation in the summer can contribute to lower trading volumes and lower prices on certain stocks. That could cause them to sell off some holdings when they return to rebalance their portfolio, driving stock prices down during September.

Mutual Fund Fiscal Year-End:
September is the end of the fiscal year for many mutual funds. That could cause some fund managers to dump the worst performing stocks in the portfolio before the end of the fiscal year in September.

The September Effect itself:
If investors expect September to be a down month, they might sell their stocks as a precautionary measure at the start of the month causing the September Effect to become a self-fulfilling prophesy.

How are we doing this September so far?

As of today, the total return of the S&P 500 is 2.03%. The return in September of last year was 2.43%. Our most recent history is not confirming the September Effect.

Should you adjust your trading based on the September Effect?

Absolutely not.

The September Effect is short term noise during what should be a long-term holding period for a high yield dividend stock investor.

It’s true that we’re not likely to buy an index fund and hold it for 20 years through all the ups and down to average out to a 10% yield.

We’re also not day traders looking to enter a trade in the morning and get out before the trading day is over.

Instead, we’re investors who find, screen, analyze, buy, and monitor well run companies with high dividend yields that have the best chance of holding their value for many years while we collect dividends of up to 8%.

As a result, we’re going to trade in September the same as we would any other month and follow our time- tested trading strategies:

Buy at a good price:

Don’t pay full price for a stock and never buy on a day when a high yield dividend stock shows up in a financial publication. If there is a pullback in the price of a stock you’re following, buy it when the price falls to a recent low or breaks down through a recent level of price support. (It doesn’t matter if the price drop is caused by the September Effect or for some other reason.)

Why it matters:
The best trades are almost always determined based on getting in at the right price. As the price drops on a high yield dividend stock, the annualized dividend yield goes up and that’s exactly what you want.

Use limit orders:

Enter your trade using a limit order that’s below the current market price based on your most recent assessment of the trading range of the stock you’re buying. Once you’ve determined a good entry price and placed your limit order, don’t change it. Hold your ground. If the trade doesn’t fill at the price you want, move on to another stock.

Why it matters:
Limit orders help keep human emotions out of your trading strategy. They serve as a way of preventing us from falling in love with a stock (or getting impatient while waiting for the price of the stock to drop) and wanting to buy it at any price. As someone once said, “Just when you’re ready to say yes, say no one more time.”

Buy late in the trading day on a down day in the market:

You’ll notice some of the best prices for stocks you’re considering on days like this.

Why it matters:
High yield dividend stock investing is a contrarian investing approach.

When you buy a stock late in the day, you’ll be going against the grain at a time when no one else wants to buy. Because you’re buying a stock that you’ve researched to confirm its potential, you’ll greatly improve your chances of getting in at the right price.

This lower entry price will give you more ability to stay in the trade for the long term.

Never forget the phrase “No New is Bad News”:

Never buy a stock on a day where there’s good news pushing the price of the stock up. Wait for a day when there’s nothing in the news for that company. Even the best companies will have days where there’s nothing in the news about them.

Why it matters:
When good news is pushing the price of a stock up, it’s tempting to feel the urge to jump right in for fear of missing out. Don’t do it!

For starters, high yield dividend stock investors don’t buy stocks for price appreciation. We buy them to collect a healthy dividend yield of up to 8% for as long as possible.

All we really need to be successful is for the stock price to hold its value while we’re collecting the dividend. If it goes up in value, that’s great. But if it doesn’t, we’re still up 8%.

Ignore the September Effect and try these trading strategies. We think you’ll like your results!

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Anxious Wall Street Braces for Jumbo 'September Effect'

Learn more from other leading financial writers about topics covered in this post:

History Says Sell in September. Wall Street is Saying “Keep Buying”

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What are Dividends?

Dividend Stock Guru — Wed, 03 Sep 2025 20:22:08 GMT

If you’ve read our recent post on high yield dividend stock investing, you know that this strategy allows you to get paid while owning a stock. Pick the right stock and it will hold its value while you’re receiving dividends on a regular basis as you go about your life.

But what exactly are dividends, how are they created, and what dates are critical to understanding how they’re paid?

Read more and we’ll help you understand them better so you can get started with your own high yield dividend stock investing!

What are dividends?

Cash dividends are when a company shares profits with its shareholders. They’re one of several ways a company can reward those who invest in the stock of a company.

The dividend is expressed as an amount per share of the company’s common stock.

How often are dividends paid?

Most companies pay dividends on a quarterly basis.

A smaller group of companies in industries such as Real Estate Investment Trusts (REITs) and Business Development Companies (BDCs) pay dividends monthly.

While rare, there are also companies that pay out their dividend annually.

Why it matters:

The timing of dividend payments may help you decide when to buy or sell a high yield dividend stock.

Stocks that pay monthly dividends tend to offer higher annual yields but can also be more susceptible to dividend cuts. The auto maker Stellantis is a good example of a company with an annual dividend. They declare their dividend over 2 months ahead of when it is paid. As an investor, this can be a long time wait time in a volatile market if you’re trying to buy a stock at a good entry price with enough lead time to qualify for the dividend.

Are all dividends paid in cash?

Most dividends are paid in cash, but a company can also pay a dividend in stock.

For cash dividends, investors may have the option of electing to have their financial institution use the proceeds from a cash dividend to buy additional shares of the company. The additional stock is purchased at the stock’s market price on the day the dividend is received.

Why it matters:

Most high yield dividend stocks are purchased for the higher dividend yield, not for an expected increase in the stock price that you might expect from a high growth dividend company. To be successful with high yield dividend stock investing, it’s usually better to request that the dividend be paid in cash and is not used to buy additional shares of the company. This way you’re freeing up more cash to diversify into another high yield dividend stock instead of buying additional stock in the same company at a higher price that might lose value.

What types of companies pay dividends?

Stocks of companies that pay dividends are known as dividend stocks.

Dividend stocks can be found in 2 types of companies:

High growth dividend companies:

These companies usually have a higher price per share. They offer investors an opportunity for growth in the price of their stock along with a dividend that may be smaller than those paid by high yield dividend companies.

High yield dividend companies:

These companies typically have a lower price per share. They offer investors limited potential for growth in the price of their stock, but pay a higher dividend than those paid by high growth dividend companies.

There are other companies with both high and limited growth that do not pay a dividend at all.

Why it matters:

You’ll see a lot of articles about dividend stocks. It’s important to quickly screen out companies with a high stock price that do not pay a high enough dividend to compensate for the additional risk you’ll have by owning an expensive stock that could be subject to large declines in the price of the stock.

What’s the difference between a regular or special dividend?

A regular dividend is paid out according to the usual payment schedule such as every quarter.

Special dividends may be paid out in addition to regular dividends on rare occasions if excess cash is available. These dividends may occur when events outside of normal, recurring operations bring in extra money that a company decides to distribute to investors. Special dividends can be paid out according to the regular dividend payment schedule or on a totally different payment schedule.

Why it matters:

It’s important for high yield dividend stock investors to make investment decisions based on the regular dividend since special dividends may be more random and not something an investor should count on.

What are the key dates for dividends?

Why it matters:

These dates will help you determine if you’ll qualify to receive the dividend depending on whether you’re buying or selling the stock.

Is Pfizer a Good High Yield Dividend Stock to Buy Now?

What is another option a company has for using excess cash other than dividends?

One popular trend in recent years has been for a company to do share buybacks. That allows a company to reduce the number of outstanding shares thereby increasing earnings per share and possibly unlocking the potential for the company’s share price to increase.

Share buybacks have been a significant and growing trend that’s made it harder for investors to find high yield dividend stocks – especially those that will hold their value while you collect the dividend.

Why it matters:

While share buybacks can help increase the price of a stock, they can require large amounts of cash to retire a meaningful amount of company stock in circulation. Companies that do this on a large scale, may be at risk of joining the recent trend to cut or eliminate paying dividends in favor of stock buybacks.

We can help!

Given the above, it might feel like a daunting task to find, screen, and buy the best high yield dividend stocks. But you can do this and we’re here to help!

Perhaps you’ve seen recent financial articles suggesting that you buy Pfizer or Verizon as a high yield dividend stock. Before you do, check out the work we’ve done to analyze both companies because not all of them are created equal.

These reports will show you how we’ve applied many of the concepts you’ve read in this post to summarize the conclusions we’ve reached on Pfizer and Verizon:

Is Verizon a Good Buy or a Dividend Cut Waiting to Happen?

Get in depth reports on both companies at a reduced price and find other high yield dividend stock reports.

Subscribe now to the Dividend Stock Guru Substack!

What is a Special Dividend?

Learn more from other leading financial writers about topics covered in this post:

How Often are Dividends Paid on Stocks?

If you’ve enjoyed this post, check out our other recent posts on Substack:

Please send any feedback you have on this report along with any suggestions you have for topics or any suggestions you have for companies you’d like to see featured in future reports to support@dividendstockguru.com.

What is High Yield Dividend Stock Investing?

Dividend Stock Guru — Sun, 24 Aug 2025 02:11:17 GMT

In recent years, the average annual dividend yield for stocks in the S&P 500 has ranged from 1.2% to 1.8%. These yields have decreased over time as many companies have reinvested cash in their businesses or used share buybacks to reduce the number of outstanding shares instead of paying dividends to investors. The S&P 500 dividend yield is also low because the index includes a broad mix of companies including those that pay a very low dividend or do not currently pay a dividend.

What is annualized dividend yield and how is it calculated?

Dividend yield is a way of estimating the expected annualized return an investor can expect if both the stock price stays at its current level and the company continues to declare a dividend consistently throughout the year (typically on a quarterly basis). It should always be calculated using regular dividends and should exclude any special/one-time dividends declared during the year.

Dividend yield provides an investor with a way of comparing the annualized return of a dividend stock to the returns of other fixed income investments such as CDs and high yield savings accounts. However, it does not factor in additional returns or losses that an investor may experience if the price of the stock goes up or down after it is purchased.

When does investing in dividend stocks become high yield?

High yield dividend stock investing is a strategy that can help you beat the dividend yield for S&P 500 stocks. It’s based on finding stocks that pay a much higher dividend yield than other stocks in the market that also offer a dividend. High yield dividend stocks typically pay dividend yields that start at 4% but higher yields are possible by finding the right companies.

These higher yields help offset potential losses on days when the stock price loses value.

At a time when S&P 500 dividend yields are so low, high yield dividend stock investing offers investors an alternative way to get a higher annualized return with stocks that are less vulnerable to market downturns.

The Rule of 72 does a great job summarizing the importance of higher yields and how higher yields significantly reduce the number of years it takes for an investor to double their money:

While it’s still possible to get 4% returns in a CD or high yield savings account, a high yield dividend stock investor who finds a stock with an 8% dividend yield can reduce the time to double that investment from 18 years to 9 years. That can make a huge difference!

What are the 2 types of dividend stocks available to investors?

High growth dividend stocks:

These stocks offer investors the potential for both income from dividends as well growth in the price of the stock over time. This combination of income and growth can be highly rewarding to shareholders.

High growth dividend stock companies usually have:

· Consistent profitability with strong cash flows and reasonable debt loads.

· A history of increasing their dividends over time.

· The potential for appreciation in the price of the stock over time.

Because they offer both growth and dividends, these stocks are typically more expensive to buy and can require a significant cash investment for newer, less experienced investors.

High yield dividend stocks:

These stocks return a large portion of their profits to shareholders as dividends resulting in a higher dividend yield. They are more focused on generating income and they do not typically reward investors with the potential for a meaningful increase in the price of the stock over time.

High yield dividend stock companies usually:

· Have annualized dividend yields that start at 4% but can be significantly higher.

· Are mature businesses with revenue that can be flat or declining, and they place a higher priority on returning profits to shareholders instead of investing in growth.

· Have limited potential for stock price appreciation over time.

Because they offer dividends but limited growth potential, these stocks are typically less expensive to buy and can be a way for newer, less experienced investors to enter the market.

Both high growth and high yield dividend stocks differ from high growth stocks that do not pay a dividend but reward the investor with growth in the price of the stock over time. High growth stocks that do not pay dividends have the potential for higher returns. However, they can be a lot more volatile than both types of dividend stocks and their stock prices typically go up or down a lot faster than the major indices do on days with large movements in the overall market.

What type of investor typically seeks a high yield dividend stock?

These stocks are attractive to investors looking to beat the returns of fixed income investments such as CDs, high yield accounts, and bonds. These investors can include retirees with shorter investment time horizons and those looking for steady cash flow and consistent dividends. While these investors will gladly accept growth in the price of the stock if it happens, it’s not their primary motivation for buying these stocks.

Benefits of high yield dividend stocks include:

· Lower entry prices for purchasing the stock which can encourage more diversification.

· Regular/consistent dividends that allow risk averse investors to be in the stock market.

· Less exposure to market downturns as dividends can offset price declines if they occur.

· The potential to cut the time needed to double an investment in half.

· Allow investors to pick individual stocks and control their own investment direction.

Is Pfizer a Good High Yield Dividend Stock to Buy Now?

How does investing in high yield dividend stocks compare to buying high growth stocks or other forms of long term “buy and hold” investing?

“Buy and hold” investing usually involves paying an investment advisor to develop a long-term investment strategy that will meet or beat the overall returns of the market. This type of investing can take on many forms including mutual funds, exchange traded funds (ETFs), and a customized selection of blue-chip stocks such as Apple, Microsoft, and IBM. There is nothing wrong with this approach but there are downsides.

History tells us that those who stay in the market over the long term achieve an average annualized yield of 10% (7% after allowing for inflation). However, “buy and hold” investors have needed strong discipline to stay in the market during the inevitable downturns that occur every 5 years or so. During these market declines, their portfolio typically loses 33% of its value. Those who do this the best put even more money in the market during these downturns.

The challenge with this approach is that there’s never a good time in life to absorb significant losses and the “buy and hold” can take too long, so this approach is not for everyone.

Done correctly, high yield dividend stocks can provide steady returns for risk averse investors with annualized returns of up to 8% – without the ups and downs of the “buy and hold approach”.

Should investors simply buy stocks with high dividend yields?

No. High yield dividend investing is not risk-free and it is not necessarily for those with limited investing experience. It’s critical not to chase high dividend yields without due diligence and research. Stocks that experience a huge drop in their share price can show a high dividend yield even if their revenue and earnings per share are declining and their business is in trouble. Dividend Stock Guru can help you identify and avoid investing in companies that have high dividend yields for all the wrong reasons.

High dividend yield investing can be daunting, but we can help you get started. As of today, if you screen the 2,510 stocks that are part of the major indices, you’ll find 1,216 with a 4% annualized dividend or higher. These stocks must be further screened and analyzed to determine if they:

· Have a high enough dividend yield to help insulate you from price declines.

· Can sustain or increase their current dividend with their earnings and cash flows.

· Have the potential to be bought at a favorable entry price based on recent price support.

· Are avoiding high debt levels that could cause a future cut in the dividend.

High yield dividend investing can be very rewarding, but it’s a contrarian investing approach and you should expect that there will be plenty of people out there who will tell you it can’t be done. But you can do this and we’re here to help!

Perhaps you’ve seen recent financial articles suggesting that you buy Pfizer as a high yield dividend stock. Before you do, check out the work we’ve done to analyze Pfizer.

This report will show you how we’ve applied many of the concepts you’ve read in this post to summarize the conclusions we’ve reached on Pfizer:

Learn more from other leading financial writers about topics covered in this post:

The Surprising Truth About Dividend Growth Stocks

3 Dividend Stocks to Hold for the Next 10 Years

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stock chart increasing in value

Welcome to Dividend Stock Guru!

Dividend Stock Guru — Sun, 24 Aug 2025 01:10:44 GMT

It’s hard to pick the right stocks with high dividend yields

You’ll find of plenty of articles and publications recommending companies that have stocks with a high dividend yield. But there’s very little out there to help you analyze these companies in a way that’s easy to understand and that’s presented in a way that you can act on.

Surprisingly there’s almost no information to help you decide on an appropriate entry price to buy one of these stocks. This can leave you vulnerable to investment losses on pullbacks in the share price as well as to unexpected dividend cuts.

This information shortage is happening during a period of market volatility, persistent inflation, and lower returns on fixed income investments. That’s why it’s never been more important to find higher dividend yields and I’m determined to help fill this information gap.

Why I’m launching on Substack now

I’m an individual retail investor not associated with any financial services firm. As a licensed CPA and a former Fortune 500 corporate controller, I’ve been using my financial background to analyze companies and to invest in the stock market for over 30 years.

I love finding, screening and investing in high yield dividend stocks. It’s something I do every single day. So, I decided that it was time for me to start sharing my research and to find other like-minded investors to collaborate with.

Types of investors who will collaborate here

I’m looking for those with some investing experience who want to take their learning to the next level as well as seasoned investors seeking new ways to succeed with high yield dividend stocks.

If you’re like me, you’re a contrarian investor who is tired of other so-called experts telling you that it’s not possible to get higher dividend yields. You’re also someone who is seeking a stable, reliable income stream with lower exposure to overall stock market risk. Finally, you’re comfortable investing in individual stocks, managing your own portfolio, and looking for alternatives to fee-based asset management.