Investors love dividend stocks because they offer great growth potential and a stable income. Generally, the higher a stock’s yield, the more attractive it is. That said, those that have a really high yield are often suspicious as well. Certain companies, such as Seagate Technology and CenturyLink, always rank in the 10 highest dividend stocks, but that same list also regularly has new entries, which implies that the situation does change.

As of 10 October 2017, the 10 highest dividend stocks were:

1. CenturyLink
2. Seagate Technology
3. Macy’s
4. Iron Mountain
5. L Brands
6. Kimco Realty
7. HCP
8. Helmerich & Payne
9. ONEOK
10. Ford

If you look at the above list of 10 highest dividend stocks, you will find that it changes regularly. Some are completely new, others are notably absent, including Frontier, which is CenturyLink’s competition. The reason for this is that the market cap fell. The result was that Frontier then cut some 60% off its dividend, which is why it does continue to have such a high yield.

Some Interesting Trends:

There are some interesting trends to be aware of as well. One is that there continues to be weakness in the retail sector. This is why L Brands is now on the list. This company owns brands like Bath & Body Works and Victoria’s Secret, and they have seen a 40% decline in their stock over the past 12 months. This has resulted in a much higher yield, however. There was a 20% drop in shares in August, but it still earns enough to support its dividend. However, the big question is how the company will fare over the holiday season.

Another change is that sectors in income heavy areas are once again on the list. These are the traditional investments that people have started to forget. One of the reason for this is because they have a different tax status. A good example is REIT HCP, which an income-focused type of investment. Since interest rates have risen and are likely to rise even more this year, it seems that more real estate options will be added to the list soon.

There has also been a huge comeback from the energy sector, which is another attractive trend for those wanting to invest. Key players in the energy industry have expressed that outlooks have improved, which has caused some dividends to increase, thereby also bolstering their yield. A good example of this is ONEOK, which has had a virtually stable value this year. Also, the company decided to merge with ONEOK Partners, which significantly boosted the company’s distributions. The payout increased by as much as 20%, and the company still had more than enough to cover its dividend by using its earnings.

These are this month’s 10 highest dividend stocks. What they will be next month is anybody’s guess. The really interesting list, however, will be the ones in January and February 2018, because it would be during those months when the impact of the holiday season will be more obvious.