20 High-Yield Dividend Stocks that Could Ruin Your Retirement (2024)

Almost everyone loves a company that pays strong dividends. Who doesn't like receiving a check every quarter for simply owning a stock--especially if that stock is paying you back 4%, 5% or even 10% of its share price in annual income each year?. In a world where 10-year treasuries are yielding 3%-4% it seems hard to go wrong when buying a stock that's yielding significantly above the going rates on fixed-income assets. Unfortunately, the market rarely offers a free lunch.

While high-yield stocks may have a lot of near-term attractiveness, those same high-yields can often signal significant danger ahead. In some cases, it might mean that the company's dividend will stop growing or won't grow as fast as it used to. Worse yet, the company could cut its dividend, reduce the income you receive from owning the stock and drive down the value of the shares that you own.

5% plus yields might seem like an easy opportunity to boost the investment income you receive, but high-yield stocks can just as often be a trap waiting to snare unsuspecting investors. It's not always easy to tell the difference though.

This slideshow highlights 20 high-yield dividend stocks that are paying an unsustainably large percentage of their earnings in the form of a dividend. These companies are all paying out more than 100% of their earnings per share in the form of a dividend, a sign that the advertised high-yield probably won't last.

#1 - AGNC Investment (NASDAQ:AGNC)

Dividend Yield: 14.8%
Annual Dividend Payout: $1.44
Earnings Per Share: $0.01
Payout Ratio: 14,400.0%
Consensus Rating: Moderate Buy
Consensus Price Target: $9.96 (3.6% Upside)

About AGNC Investment

AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs). ReadMore

#2 - Yara International ASA (OTCMKTS:YARIY)

Dividend Yield: 13.61%
Annual Dividend Payout: $2.14
Earnings Per Share: $0.10
Payout Ratio: 2,140.0%
Consensus Rating: N/A

About Yara International ASA

Yara International ASA provides crop nutrition and industrial solutions in Norway, European Union, Europe, Africa, Asia, North and Latin America, Australia, and New Zealand. The company offers ammonium- and urea-based fertilizers; compound fertilizers that contain plant nutrients, such as nitrogen, phosphorus, and potassium; coatings; biostimulants; organic-based fertilizers; green fertilizers are nitrate-based mineral fertilizers, as well as foliar and fertigation solutions; and nitrate, calcium nitrate, micronutrient, and fertigation fertilizers. ReadMore

#3 - Viatris (NASDAQ:VTRS)

Dividend Yield: 3.92%
Annual Dividend Payout: $0.48
Earnings Per Share: $0.04
Payout Ratio: 1,200.0%
Consensus Rating: Sell
Consensus Price Target: $10.33 (12.6% Downside)

About Viatris

Viatris Inc operates as a healthcare company worldwide. The company operates in four segments: Developed Markets, Greater China, JANZ, and Emerging Markets. It offers prescription brand drugs, generic drugs, complex generic drugs, biosimilars, and active pharmaceutical ingredients (APIs). The company offers drugs in various therapeutic areas, including noncommunicable and infectious diseases; biosimilars in the areas of oncology, immunology, endocrinology, ophthalmology, and dermatology; and APIs for antibacterial, central nervous system agents, antihistamines/antiasthmatics, cardiovascular, antivirals, antidiabetics, antifungals, and proton pump inhibitor areas, as well as support services, such as diagnostic clinics, educational seminars, and digital tools to help patients better manage their health. ReadMore

#4 - Brookfield Infrastructure Partners (NYSE:BIP)

Dividend Yield: 5.39%
Annual Dividend Payout: $1.62
Earnings Per Share: $0.14
Payout Ratio: 1,157.2%
Consensus Rating: Moderate Buy
Consensus Price Target: $39.11 (35.4% Upside)

About Brookfield Infrastructure Partners

Brookfield Infrastructure Partners L.P. owns and operates utilities, transport, midstream, and data businesses in North and South America, Europe, and the Asia Pacific. The company's Utilities segment operates approximately 60,000 kilometers (km) of operational electricity transmission and distribution lines; 2,900 km of electricity transmission lines; 4,200 km of natural gas pipelines; 7.8 million electricity and natural gas connections; and 540,000 long-term contracted sub-metering services. ReadMore

#5 - Basf (OTCMKTS:BASFY)

Dividend Yield: 4.99%
Annual Dividend Payout: $0.67
Earnings Per Share: $0.06
Payout Ratio: 1,116.7%
Consensus Rating: Reduce

About Basf

BASF SE operates as a chemical company worldwide. It operates through six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. The Chemicals segment provides petrochemicals and intermediates. The Materials segment offers advanced materials and their precursors for applications and systems comprising isocyanates, polyamides, and inorganic basic products, as well as specialties for plastics and plastics processing industries. ReadMore

#6 - Telia Company AB (publ) (OTCMKTS:TLSNY)

Dividend Yield: 4.68%
Annual Dividend Payout: $0.22
Earnings Per Share: $0.02
Payout Ratio: 1,100.0%
Consensus Rating: Hold

About Telia Company AB (publ)

Telia Company AB (publ) provides communication services to businesses, individuals, families, and communities in Sweden, Finland, Norway, Denmark, Lithuania, Estonia, and Latvia. It offers mobile, broadband, television, and fixed-line services; and networking, cloud and security, mobility, enterprise mobile network, contact center, managed mobility services, collaboration solutions, enterprise telephony, Internet of Things (IoT), carrier ethernet, dedicated internet access, wavelengths, IP Transit, dark fiber, and colocation solutions. ReadMore

#7 - Alexandria Real Estate Equities (NYSE:ARE)

Dividend Yield: 4%
Annual Dividend Payout: $5.08
Earnings Per Share: $0.54
Payout Ratio: 940.8%
Consensus Rating: Moderate Buy
Consensus Price Target: $137.13 (11.0% Upside)

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. ReadMore

#8 - Clorox (NYSE:CLX)

Dividend Yield: 3.09%
Annual Dividend Payout: $4.80
Earnings Per Share: $0.63
Payout Ratio: 761.9%
Consensus Rating: Reduce
Consensus Price Target: $144.33 (4.8% Downside)

About Clorox

The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex, and Formula 409 brands; professional cleaning and disinfecting products under the CloroxPro and Clorox Healthcare brands; professional food service products under the Hidden Valley brand; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light brands in the United States. ReadMore

#9 - Blue Owl Capital (NYSE:OWL)

Dividend Yield: 3.18%
Annual Dividend Payout: $0.56
Earnings Per Share: $0.10
Payout Ratio: 560.0%
Consensus Rating: Moderate Buy
Consensus Price Target: $16.63 (4.2% Downside)

About Blue Owl Capital

Blue Owl Capital Inc operates as an asset manager in the United States. The company offers permanent capital base solutions that enables it to offer holistic framework of capital solutions to middle market companies, large alternative asset managers, and corporate real estate owners and tenants. It also provides direct lending products that offer private credit products comprising diversified, technology, first lien, and opportunistic lending to middle-market companies; liquid credit; GP strategic capital products, which offers capital solutions, including GP minority stakes, GP debt financing, and professional sports minority stakes; and real estate products that focuses on acquiring triple net lease real estate by investment grade or creditworthy tenants. ReadMore

#10 - Pfizer (NYSE:PFE)

Dividend Yield: 5.92%
Annual Dividend Payout: $1.68
Earnings Per Share: $0.36
Payout Ratio: 466.7%
Consensus Rating: Hold
Consensus Price Target: $36.88 (31.1% Upside)

About Pfizer

Pfizer Inc discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States, Europe, and internationally. The company offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, Zavzpret, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Abrysvo, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands. ReadMore

#11 - Iron Mountain (NYSE:IRM)

Dividend Yield: 3.21%
Annual Dividend Payout: $2.60
Earnings Per Share: $0.63
Payout Ratio: 412.7%
Consensus Rating: Moderate Buy
Consensus Price Target: $71.80 (8.0% Downside)

About Iron Mountain

Iron Mountain Incorporated (NYSE: IRM) is a global leader in information management, innovative storage, data center infrastructure, and asset lifecycle management. Founded in 1951 and trusted by more than 225,000 customers worldwide, Iron Mountain serves to protect and elevate the power of our customers' work. ReadMore

#12 - DOW (NYSE:DOW)

Dividend Yield: 4.88%
Annual Dividend Payout: $2.80
Earnings Per Share: $0.82
Payout Ratio: 341.5%
Consensus Rating: Hold
Consensus Price Target: $56.00 (2.3% Downside)

About DOW

Dow Inc, through its subsidiaries, engages in the provision of various materials science solutions for packaging, infrastructure, mobility, and consumer applications in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America. The company operates through Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings segments. ReadMore

#13 - Boston Properties (NYSE:BXP)

Dividend Yield: 6.14%
Annual Dividend Payout: $3.92
Earnings Per Share: $1.21
Payout Ratio: 324.0%
Consensus Rating: Hold
Consensus Price Target: $69.63 (11.2% Upside)

About Boston Properties

Boston Properties, Inc (NYSE: BXP) (BXP or the Company) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. ReadMore

#14 - Healthcare Trust of America (NYSE:HTA)

Dividend Yield: 4.53%
Annual Dividend Payout: $1.33
Earnings Per Share: $0.42
Payout Ratio: 316.7%
Consensus Rating: N/A

About Healthcare Trust of America

Healthcare Trust of America, Inc (NYSE: HTA) is the largest dedicated owner and operator of MOBs in the United States, comprising approximately 25.1 million square feet of GLA, with $7.4 billion invested primarily in MOBs. HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations. ReadMore

#15 - Omega Healthcare Investors (NYSE:OHI)

Dividend Yield: 8.67%
Annual Dividend Payout: $2.68
Earnings Per Share: $0.99
Payout Ratio: 270.7%
Consensus Rating: Hold
Consensus Price Target: $32.73 (6.0% Upside)

About Omega Healthcare Investors

Omega is a REIT that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the U.S., as well as in the U.K.

#16 - TELUS (NYSE:TU)

Dividend Yield: 6.28%
Annual Dividend Payout: $1.10
Earnings Per Share: $0.43
Payout Ratio: 255.8%
Consensus Rating: Hold
Consensus Price Target: $28.31 (71.5% Upside)

About TELUS

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network services; healthcare services; mobile technologies equipment; data services, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain and consumer goods technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services, as well as mobile and fixed voice and data telecommunications services and products. ReadMore

#17 - Realty Income (NYSE:O)

Dividend Yield: 5.8%
Annual Dividend Payout: $3.08
Earnings Per Share: $1.26
Payout Ratio: 244.4%
Consensus Rating: Hold
Consensus Price Target: $60.96 (18.0% Upside)

About Realty Income

Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust ("REIT"), and its monthly dividends are supported by the cash flow from over 13,250 real estate properties primarily owned under long-term net lease agreements with commercial clients. ReadMore

#18 - Fibria Celulose (NYSE:FBR)

Dividend Yield: 8.19%
Annual Dividend Payout: $1.41
Earnings Per Share: $0.61
Payout Ratio: 231.1%
Consensus Rating: N/A

About Fibria Celulose

Fibria Celulose SA produces, sells, and exports short fiber pulp in Brazil and internationally. It manufactures and sells bleached eucalyptus kraft pulp. The company has approximately 1,056,000 hectares of forest base in the states of São Paulo, Minas Gerais, Rio de Janeiro, Espírito Santo, Mato Grosso do Sul, and Bahia. ReadMore

#19 - AbbVie (NYSE:ABBV)

Dividend Yield: 3.45%
Annual Dividend Payout: $6.20
Earnings Per Share: $2.73
Payout Ratio: 227.1%
Consensus Rating: Moderate Buy
Consensus Price Target: $175.36 (3.2% Downside)

About AbbVie

AbbVie Inc discovers, develops, manufactures, and sells pharmaceuticals worldwide. The company offers Humira, a therapy administered as an injection for autoimmune, intestinal Behçet's diseases, and pyoderma gangrenosum; Skyrizi to treat moderate to severe plaque psoriasis, psoriatic disease, and Crohn's disease; Rinvoq to treat rheumatoid and psoriatic arthritis, ankylosing spondylitis, atopic dermatitis, axial spondyloarthropathy, ulcerative colitis, and Crohn's disease; Imbruvica for the treatment of adult patients with blood cancers; Epkinly to treat lymphoma; Elahere to treat cancer; and Venclexta/Venclyxto to treat blood cancers. ReadMore

#20 - International Paper (NYSE:IP)

Dividend Yield: 5.16%
Annual Dividend Payout: $1.85
Earnings Per Share: $0.82
Payout Ratio: 225.6%
Consensus Rating: Hold
Consensus Price Target: $36.13 (0.2% Downside)

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. ReadMore