3 Monster Dividend Stocks Yielding Up to 10.7%

Core Viewpoint - The article discusses the risks associated with investing in ultra-high-yield dividend stocks, highlighting LyondellBasell's recent dividend cut and presenting alternative options for income investors. Group 1: LyondellBasell - LyondellBasell recently slashed its dividend in half, dropping its yield from 12.6%, which was the highest in the S&P 500, to a lower level [1][4] - The company had previously paid dividends well in excess of its earnings before the reduction, indicating a less sustainable dividend policy [5] Group 2: Conagra Brands - Conagra Brands now holds the highest dividend yield in the S&P 500 at 7.4% following LyondellBasell's cut [4] - The company expects its dividend payout ratio to be around 80% of its earnings this year, which is above its target range of 50% to 55% but more sustainable than LyondellBasell's previous practices [5] - Conagra is facing inflationary pressures that are impacting margins and demand, but it has seen positive momentum in its business and expects sales growth in the second half of its fiscal year [6] - The company has reduced its debt by over 10% in the past year, strengthening its financial position [6] Group 3: Delek Logistics Partners - Delek Logistics Partners is a master limited partnership (MLP) focused on energy midstream assets, currently offering an 8.9% distribution yield [7] - The MLP has a strong track record of paying distributions, recently extending its growth streak to 52 consecutive quarters [8] - Delek generates stable cash flows supported by long-term contracts, producing enough cash last year to cover its distribution by 1.2 times [8]