Three Stocks with “Jumbo” Yields

Three Stocks with “Jumbo” Yields

In my mind a “jumbo” dividend yield — within the context of the low interest-rate environment — is anything above, say, 3%, or more than double the yield of the broad market and 10-year Treasury, notes Chuck Carlson, dividend reinvestment specialist and editor of DRIP Investor.

Of course, chasing yield has never been a great investment approach. Building a portfolio strictly based on yield will limit your portfolio diversification (a lot of high-yielding stocks aggregate in a few industries), stunt your portfolio’s dividend-growth prospects, and limit the portfolio’s capital-gains potential.

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