Whether you are thinking about retiring or simply just want to add some income producing stocks to your investment strategy, high dividend paying equities can make a great addition to your portfolio. Unless investors are willing to purchasing high yielding European debt or even risky master limited partnership units, North American fixed income securities do not offer high enough payment stream to attract every investor away from equities.
2009 and 2010 gave rise to many "accidental high yielders", stocks which retained their payout ratios, but their yields were artificially inflated due to the decline in stock price. Overall, the market has shown tremendous gains over the past two years, and despite still being slightly below pre-recession levels, many companies are once again trading at their fair value. As a result, the investment landscape has drastically changed as dividend yields are no longer misleading.
Source: Investopedia
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