in our free newsletter.

Thousands benefit from our email every week.

Icahn Enterprises (IEP)

Carl Icahn doesn’t get nearly as much attention as Warren Buffett. The two men have strikingly different investment styles, but they’ve both outperformed the S&P 500 for decades.

The investment legends also have different views on shareholder rewards. Buffett prefers to retain all excess cash flow, which is why Berkshire Hathaway doesn’t pay a dividend. Icahn prefers to return most of his company’s excess cash flow back to shareholders.

Icahn Enterprises currently offers a 15.7% dividend yield. The cash is derived from income and capital gains generated on the company’s broad investments in the energy, automotive, food packaging, metals, real estate, and home fashion sectors.

Contemporary art has outperformed the S&P 500 by 131% for the past 26 years. Join the exclusive platform to invest in million-dollar works by artists like Banksy, Basquiat, and more. Get started today and diversify your portfolio with art.

Learn More

Rio Tinto (RIO)

British mining giant Rio Tinto is another high-yield dividend stock. It currently trades offers a 10.5% dividend yield. The stock also trades at a price-to-earnings ratio of 5.9 — which is arguably cheap.

Rio Tinto’s stock is up 17% year to date, but its underlying fundamentals are strengthening faster. Revenue surged 42% last year while net cash generated from operations surged 60% over the same period.

Nearly every mineral in the company’s portfolio is in a strong bull market. Copper, lithium, iron ore and aluminum are all trading at record prices. These prices have encouraged management to deploy more cash into expansion. The recent acquisition of the Rincon lithium project in Argentina for $825 million highlights this fact.

These minerals are critical to the green energy and electric vehicle transition, which is why Rio Tinto could see further upside in the years ahead.

More: 18 ways to boost your income

Lumen Technologies (LUMN)

Communications technology giant Lumen Technologies has been on an acquisition spree in recent years. This broadened the company’s portfolio of tech services and prompted the management team to rebrand. However, these initiatives haven’t unlocked value for the shareholders yet.

The stock has been dragged lower along with the rest of the tech sector. Lumen has lost 20% of its value over the past year.

However, unlike other tech companies, Lumen is profitable and cash flow positive. In fact, the stock pays an 8.5% dividend yield. That’s substantially higher than the rest of the tech sector — where many stocks don’t pay a dividend at all

Investors are worried about the company’s debt burden — which is 2.3 times greater than the value of its equity. However, the stock trades at just five times earnings, which could make the risk-reward ratio attractive for some investors.

Acorns rounds your everyday purchases to the nearest dollar and invests your spare change. That means any spare change from your daily spending – gas, coffee or groceries – will go towards building your wealth. Get up to $20 when you sign up with this special link.

Get Started

More from Moneywise

Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

About the Author

Vishesh Raisinghani

Vishesh Raisinghani

Freelance Writer

Vishesh Raisinghani is a freelance contributor at MoneyWise. He has been writing about financial markets and economics since 2014 - having covered family offices, private equity, real estate, cryptocurrencies, and tech stocks over that period. His work has appeared in Seeking Alpha, Motley Fool Canada, Motley Fool UK, Mergers & Acquisitions, National Post, Financial Post, and Yahoo Canada.

What to Read Next


The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.