Published on 19 May 2024 on Insider Monkey · via Yahoo Finance
Is British American Tobacco p.l.c. (NYSE:BTI) the Best High-Yield Dividend Stock...
In this article, we will take a look at some of the best dividend stocks with over 7% yield according to hedge funds. Though British American Tobacco p.l.c. (NYSE:BTI) ranks 9th on our list of the 10 Best Dividend Stocks with 7+% Yield, we have analyzed the stock in detail.
High dividend yields are attractive. They show the potential income an investor can earn from dividends compared to the stock’s price. That said, financial experts have always advised investors to stay away from yield traps, as high yields often signal financial trouble. This is possibly true, but not certain. Various reports have shown how dividend stocks outperformed other asset classes over the years. Newton Investment Management published a report on the subject and revealed that high-yielding dividend stocks outperformed the broader market during high inflationary periods from 1940 to 2021. The report also showed that investment portfolios with high-yield dividend stocks outperformed those with low or zero-dividend stocks in terms of value-weighted performance. High-yield portfolios surpassed the performance of low-yield ones by 199 basis points and zero-yield portfolios by 330 basis points.