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Stocks with higher dividend yields have historically performed better than those with lower yields in certain periods. According to a study by Heartland Advisors, portfolios of companies that paid dividends performed better than portfolios of companies that didn’t. Additionally, Bank of America-Merrill Lynch split Russell 1000 companies into five groups and found that the second-highest-yielding group offered the best returns when considering risk.

However, high dividend yields can also be a red flag if the company’s dividend is not stable. Yield traps can occur when the price of a stock that pays dividends drops significantly because the market expects the company’s future earnings to be much lower. Companies with lower payout ratios generally have better returns, suggesting more financial flexibility and the ability to handle challenges or invest in opportunities.

Certain industries like utilities, real estate, energy, and telecommunications tend to provide higher dividend yields due to their cash-generating nature.

Here are 10 dividend stocks with over 8% yield:

1. Altria Group, Inc. (NYSE: MO) – A Virginia-based tobacco company that pays a quarterly dividend of {TRESC}.94 per share with a dividend yield of 8.83% as of August 18.

2. Highwoods Properties, Inc. (NYSE: HIW) – An American real estate investment trust company that pays a quarterly dividend of {TRESC}.50 per share with a dividend yield of 8.90%.

3. Innovative Industrial Properties, Inc. (NYSE: IIPR) – An American real estate investment trust company focused on the medical cannabis industry. It pays a quarterly dividend of .80 per share with a dividend yield of 9.27%.

4. Energy Transfer LP (NYSE: ET) – A Texas-based energy company engaged in natural gas and propane pipeline transport. It declared a quarterly dividend of {TRESC}.31 per share with a dividend yield of 9.63%.

More dividend stocks with high yields include Verizon Communications Inc. (NYSE: VZ), Walgreens Boots Alliance Inc. (NASDAQ: WBA), and 3M Company (NYSE: MMM).

These companies have a history of consistently paying dividends and have overall financial health, making their upcoming dividends likely to remain dependable.

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