When you are looking to build a dividend portfolio, there are those who suggest that you avoid choosing dividends with very high yields. After all, once you get beyond a certain point, you might be looking at a dividend stock that could be a little riskier. It’s possible that dividends will be slashed, or that the high dividend is there to make up for something else.
If you feel like taking a walk on the wild side of the dividend investing street, though, here are 4 dividend stocks with rather high yields going ex-dividend next week:
Cellcom Israel (CEL)
Ex-Dividend Date: July 9
Communications company Cellcom Israel offers a variety of solutions for individuals and businesses. As the name implies, CEL offers wireless services to its customers. The dividend yield is a ridiculously high 126.10%, and the five year average is 61.80%. The dividend rate is $6.26, and the payout ratio is 364%. The three year dividend growth rate average is -10.05%. There have been no consecutive dividend increase for CEL, and the company has been paying divdends since 2007.
Consolidated Comm (CNSL)
Ex-Dividend Date: July 11
It’s true that after seeing the dividend yield offered by CEL that anything seems a little low. However, telecommunications company Consolidated Communications still has a fairly high dividend yield, at 9.70%. The company offers TV, Internet, and phone services to residential and business customers. The five year average is 10.30%, with a three year dividend growth rate of 0%. The payout ratio is 221%. CNSL has been paying dividends since 2005, and there have been no consecutive increases.
Fifth Street Finance (FSC)
Ex-Dividend Date: July 11
Fifth Street Finance is a financial company that specializes in venture capital, and middle market buyouts. FSC has a dividend yield of 10.80%, and a payout ratio of 107%. The five year average is 9.40%, while the three year average growth rate is -4.08%. Fifth Street Financial has had one consecutive dividend increase, and has just very recently started paying dividends, in the mid-2000s.
ARMOUR Residential REIT (ARR)
Ex-Dividend Date: July 12
If you are looking for a little real estate exposure in your dividend portfolio, it might be worth it to consider REITs. The ARMOUR Residential REIT focuses on residential properties. ARR has been paying dividends only since 2010, so there isn’t information on the five year average, or the three year average dividend growth rate. The dividend yield, though, is 18.10%. The dividend rate is $1.20. There haven’t been any consecutive dividend increases.