I’m a big fan of using dividend stocks as a way to earn extra income. But not all dividend-paying companies are reliable. Vodafone disappointed me recently by slashing its 10% yield in half, prompting me to sell my stake in the company.
Now I’m more careful about the income stocks I invest in. Currently, my top three picks are Phoenix Group (LSE: PHNX), British American Tobacco (LSE: BATS) and Legal & General (LSE: LGEN).
Here’s why I think they’re worth investors considering.
Phoenix Group
Phoenix Group’s 9.5% yield could soon be the highest on the FTSE 100 after Vodafone drops down to 5.2%. The insurer hasn’t been paying dividends for very long but has increased them annually for the past six years.
Screenshot from dividenddata.co.uk
As one of the UK’s biggest insurance firms, it faces stiff competition from Legal & General and Prudential. Unfortunately, there’s one…
