Dividends4Life: 2 Stocks to Buy With Dividends Yielding More Than 5%

Unfortunately, high-yield stocks have become a high-risk area for investors over the past several years. Due to low interest rates, investors have become so hungry for yield that they've gobbled up almost anything that pays a high rate, which has pushed valuations up and yields down. Meanwhile, the thirst for yield has caused income-focused companies to do whatever it takes to satiate that desire, sometimes taking on elevated levels of risk to pay at a compelling level, which has often led to disastrous results.

That said, not every high-yield stock is a disaster waiting to happen. Two that stand out as having the ability to not only sustain but likely grow their payouts are Buckeye Partners (NYSE:BPL) and Brookfield Property Partners (NYSE:BPY), which both currently offer yields well in excess of 5%. Buckeye Partners and Brookfield Property Partners offer investors a reasonably low-risk way to collect a relatively high yield. Fueling that dynamic combination is their solid financials, consisting of stable cash flow-generating assets, strong balance sheets, and conservative payout ratios. However, what sends these two over the top, in my opinion, is that they have the clear ability to grow their already healthy payouts, which means investors can sit back and watch a growing stream of dividends coming into their account.

Source: Motley Fool

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