A noble aim of an income investor is to seek passive income that exceeds inflation.
With inflation running at between 2% to 3%, investors would want dividend yields that exceed this threshold to make their money work harder for them.
At the same time, it’s important to ensure, though, that these dividends are sustainable.
A high yield alone cannot be used as the basis for purchasing any stock but should be taken as just one of the many factors you should consider when evaluating suitable investment opportunities.
Here are five companies that offer dividend yields above 5%.
Valuetronics Holdings Ltd (SGX: BN2)
Valuetronics is an electronic manufacturing service provider that designs and develops products for the electronics industry.
The group has two main reporting segments: consumer electronics and industrial & commercial electronic products.
For the fiscal half-year ended 30 September 2020, Valuetronics reported that revenue fell nearly 20% year on year to HK$1.1 billion....