If your goal is to accumulate wealth for a comfortable retirement, then there is no risk-free path. Yield and risk tend to follow each other. As risk increases, the investor demands more yield to compensate for that risk. Sometimes it is desirable to accept higher risk for a higher yield. Other times we may be accepting higher risk and are not being adequately compensated for the additional risk.
A stock with a high yield doesn't offer much if the price significantly declines after its dividend is cut or eliminated. Fortunately, the market does not always behave in a rational manner. This will sometimes create an abnormal relationship between risk and yield.
As a society we have grown accustom to wanting it all, including our investments. Specifically, many income investors want both high yield and low risk. Sometimes individual stocks find themselves in the unusual position of providing both higher yields and lower risks. If you don't look for them, you will never find them.
This week week, I screened my dividend growth stocks database for stocks rated as Low risk and with yields above 4%. (Click here to see how I calculate Risk.) The results are presented below:Kimberly-Clark Co. (KMB) | Yield: 4.1%
Kimberly Clark Corp. is a global consumer products company that produces tissue, personal care and health care. Its brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex, Scott and Kimberly-Clark.Nucor Corporation (NUE) | Yield: 4.1%
Nucor Corporation is the largest minimill steelmaker in the U.S., and has one of the most diverse product lines of any steelmaker in the Americas.Nextera Energy, Inc. (NEE) | Yield: 4.2%
FPL Group Inc.