2 Stocks to Buy With Dividends Yielding More Than 4% and 5%, Respectively

Dividend stocks can be wonderful. Dividends can provide current income or, when reinvested, they can help power total capital appreciation. But you need to tread carefully once you get into higher-yielding dividend stocks. Many are quite risky and/or their growth prospects are very limited to nil.

Two higher-yielding dividend-paying stocks that aren’t overly risky and have decent growth potential are Realty Income (O) and Iron Mountain (IRM). Both companies are organized as real estate investment trusts (REITs), which means they must pay out at least 90% of their income as dividends in return for their preferential tax treatment.

Source: Motley Fool

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