Stock Under $10 with 50-100% upside potential - 14 Days FREE!

7 High-Yield Stocks With Bullish Price Trends

Stock quotes in this article: T, VZ, MO, LLY, DUK, SDRL, RAI, RSH 

NEW YORK (TheStreet) -- It's hard to beat owning a high-yield stock. With other types of investing paying next to zero, equities continue to offer attractive yields.

Of course a high yield doesn't mean much in the face of a large capital loss resulting from a company board's decision to terminate future dividend payments indefinitely. Radioshack (RSH) presents a recent illustration of a "yield trap"; a stock paying a very high yield that is unsustainable due to a lack of earnings.

The most dangerous action an investor can take is buying a stock solely based on the yield. Sure, we all want to own high-yield stocks, but unless you take the time to perform the necessary due diligence, you will permit inessential peril and hazard to your portfolio.

In this article, you have an opportunity to review stocks that meet my recommended starting point for examination. Out of thousands of stocks trading, how does a company make it on this list?

  • A stock must be liquid and trade with a small bid-ask spread to avoid slippage
  • The company must have a history of dividend payments and increases in payments
  • The company needs to demonstrate the ability to continue paying the current dividend or more
  • The stock chart must be in a bullish uptrend; there is no point in looking for a 4% yield if the shares are expected to drop 5% in the next year
  • How does an investor use this list of dividend stock ideas? This should be your starting point, not an end-all for your research. Make sure the industry and company is a match for your investment objectives. Use your current professional knowledge as applicable to garner a market edge when entering or exiting a position.

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