With short-term certificates of deposit (CDs) yielding practically nothing, a troubled junk bond market, and fluctuating stock prices, appealing long-term investment opportunities are scarce.
It has become extremely difficult to find large companies with relatively strong balances that also have substantial yields based on their dividends. There are some companies, however, that regularly pay out favorable dividends. 24/7 Wall St. found eight companies after a screen of S&P 500 companies with yields greater than 5%. Dividend yield is defined as annual dividend per share divided by share price.
Dividends are highly coveted features of investments, because they provide reliable cash returns even for long-term investors.
We removed some troubled energy companies with relatively high yields from the list. These companies have been battered by oil and gas prices, which may make it difficult to maintain their dividends for long. Those stocks that remain are from S&P 500 components with a history of strong operations and long track records.