This story was originally published here.
When stocks plunged this spring, yields on dividend stocks shot up. But that doesn't always mean they'll be a great income investment. It could mean the company is in distress and will need to slash the dividend in the future.
That's why I dug into SEC filings, balance sheets, and my own research tools to find the best high-yield dividend stocks to add to your portfolio.
You see, these stocks pay incredibly high dividends, but I made sure they have the fundamentals, the management, and the industry growth to keep their dividend rising into the future.
Today I've got two dividend stocks for you with yields as high as 14%, and I've found them by targeting one important industry…
How to Find the Best High-Yield Dividend Stocks Today
Oil prices have recovered nicely since the madness of negative prices back in March when Saudi Arabia and Russia decided to engage in a price war just as the coronavirus swept across the globe crushing demand.
Since then, OPEC has put production cuts in place, and demand is slowly creeping back up. Despite tripling off the lows, oil is still down around 40% this year. OPEC is meeting this week and will discuss keeping production cuts in place through the summer to support prices further.
U.S. production has also declined dramatically in the face of low prices. Production in June is expected to be 10.7 million barrels per day, a decline of 17% from the 12.9 million barrels produced in March. The rig count has declined for nine weeks in a row, and a full recovery of U.S. production is not expected anytime soon.
While the recovery probably helped hold off a wave of bankruptcies among shale producers, it is unlikely we see too much more of an increase in oil prices. The demand will not be high enough to push prices significantly higher…
The world economy was weak before the coronavirus shut down a vast swath of the global economy. The post virus recovery will take a long time, so it is likely oil prices remain range-bound for an extended period.
You see, the drop in prices caused steep sell-offs in almost all energy-related securities over the past several months. The midstream segment that transports and stores oil got hit right along with producers.
And that has created a massive opportunity for these two high-yield dividend stocks…
Editor's Note: For the rest of the story, click here.
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