3 Dividend Stocks With Yields Over 5%

Global government bond yields are nearing 4%, a level last seen in 2007, which means borrowing is more expensive and income from safer assets is higher. That puts consistent cash payouts front and centre for investors who still want potential upside. This article walks through a small group of long term dividend payers offering yields above 5% and highlights three stocks from this group that merit a closer look.

The three dividend stocks in this article are just a sample set, and the full screen surfaced 4 more companies with equally compelling income stories that are not covered below. To identify and analyze all of the high yield Dividend Aristocrats in one place, head straight to the Dividend Aristocrats screener.

DHT Holdings (DHT)

Overview: DHT Holdings operates a fleet of VLCC crude oil tankers, using long term and spot charters to generate cash for high dividends.

Operations: DHT Holdings generates about US$799 million in revenue from its fleet of crude oil tankers through chartering activity.

Market Cap: US$3.4b

DHT Holdings matters in this Dividend Aristocrats screen because its VLCC fleet converts contracted shipping demand into asset backed, high yield income.

"The escalation of US-Israel strikes on Iran, including the assasination of Iran's Supreme Leader, Khamenei, has triggered Iranian retaliation which include effective disruptions or closures in the Strait of Hormuz that serves as a vital chokepoint for global oil trade."

What really counts now is how one untested pressure on VLCC earnings eventually feeds through to dividend coverage and future payout policy.

That payout path under stress is exactly what the full narrative for DHT Holdings unpacks. It reveals where DHT Holdings might be decoupling from headline risk.

Adams Diversified Equity Fund (ADX)

Overview: Adams Diversified Equity Fund is a closed end US investment fund that manages a portfolio of income focused equity holdings for shareholders.

Operations: Adams Diversified Equity Fund generates about US$34 million of revenue from its closed end fund activities, all from the United States.

Market Cap: US$3.3b

Adams Diversified Equity Fund aligns with the Dividend Aristocrats theme by pairing income oriented equity exposure with a P/E of 5.4x and a 59.7% discount to estimated fair value. However, investors focused on stable payouts still need to weigh how one unresolved pressure on recurring earnings power and funding costs may influence future distributions.

That tension around future distributions is exactly why the 2 key rewards and 2 important warning signs and how Adams Diversified Equity Fund’s income story could evolve from here.

First National Bank Alaska (FBAK)

Overview: First National Bank Alaska runs a long established Alaskan banking franchise, using deposit funded lending and fee services to support recurring, dividend friendly cash flow.

Operations: First National Bank Alaska generates about US$225 million in revenue from general banking and trust services entirely within the United States.

Market Cap: US$1.0b

First National Bank Alaska lines up neatly with the Dividend Aristocrats theme because its 5%+ yield is backed by a traditional bank model that generates net interest income and fees, supported by a 37.1% profit margin and a recent US$41.99 million half year profit. However, the real test for that payout lies in how one quiet pressure on dividend consistency ultimately plays out.

That quiet pressure makes it worth checking the 2 key rewards and 1 important warning sign before dividend consistency masks where First National Bank Alaska’s payout story could really shift.

Seeking Alternatives Before The Crowd?

Fresh income ideas often get caught quickly when momentum builds and yields start dropping. Scan these curated lists while they are still under the radar and consider them early.

• Target reliable cash generators by filtering for balance sheet strength and robust fundamentals with the curated list of solid balance sheet and fundamentals (23 results).
• Hunt for outlier returns by focusing on curated 16 high quality undiscovered gems that most investors have not even started tracking yet.
• Follow structural growth trends by exploring curated 39 power grid technology and infrastructure stocks that reflect ongoing infrastructure upgrades worldwide.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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