In today’s low-interest-rate environment, it is very challenging to get decent income from your investments. Even looking out as far as 30 years, U.S. Treasury bonds recently offered interest rates below 2%. That makes stocks with yields above 3% particularly tempting. After all, unlike fixed-rate Treasury bonds, stock dividends have the potential to grow over time — as does the price of the underlying stock itself.
That means that in the current market environment, the right set of stocks can offer you both higher income and better growth than bonds. You are taking on higher risks with stocks, however, as those dividends are not guaranteed payments. As a result, you’ll want to look not only at how large a company’s dividend is, but also at how sustainable it could potentially be. With that in mind, here are three stocks to consider buying with dividends yielding more than 3%.