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9 High-Quality Dividend Stocks Yielding 5% or More

Dividend safety is a core element of conservative income investing and selecting dividend stocks. Not only does a payout cut reduce a portfolio's income stream, but it can also significantly hurt a nest egg's long-term returns.

Companies that cut or eliminated their dividends recorded an annual loss of 0.4% per year from 1972 through 2016 while being much more volatile than the broader market, according to data from Ned Davis Research.

No one wants to outlive their retirement savings, so seeking out safe dividend stocks clearly is an important capital preservation strategy.

Income-hungry investors tend to be drawn to stocks with higher yields. However, exercising caution to avoid companies with the greatest risk of reducing their dividends in the future is just as important.

The following nine dividend stocks appear to be high-quality businesses with safe and growing yields above 5%. Here's a closer look.

W.P. Carey

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Market value: $6.6 billion

Dividend yield: 6.6%

Diversified sources of cash flow can help improve the safety of a company's dividend, and W.P. Carey (WPC, $61.18) really delivers on this front.

The real estate investment trust runs a balanced business with industrial-focused properties accounting for 30% of its portfolio, followed by office buildings (25%), retail (17%), warehouses (14%) and self-storage (5%). About a third of the business is outside of the U.S., and its top 10 tenants - which include German) - account for just 32% of total rent.

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