There are a lot of high dividend stocks that an investor can invest in. However, some of the highest dividends can be found by investing in companies that cater to people's vices. Here is a list of some "sinful" industries from Investopedia where you will find some high dividend stocks:
* Gambling - Just one trip to Las Vegas or Atlantic City and the extent of just how big a business gambling is bowls you over. In Vegas alone there are numerous casino operators with market capitalizations in the multibillion-dollar range. In addition to the casino and hotel operators, is the less sexy end of the business - maintaining the hardware to keep the casinos full. The industry also encompasses racetrack operators as well as sports betting companies. One thing is clear, gambling is not about to go away anytime soon. If anything, gambling's popularity has soared in recent years with more and more ways to place a bet online.
* Alcohol - The profitability of beer, wine and spirits has been something that companies have been capitalizing on for hundreds of years. While the majority of vineyards are private, there are plenty of brewers and distillers that are publicly traded. In fact, there are now hardly any cities which do not sell brands such as Budweiser and Heineken.
* Tobacco - Despite a firestorm of class-action lawsuits at the end of the millennium and the billions of dollars spent in settlement payouts, tobacco and cigarette companies remain profitable. Even if smoking has become less vogue in North America, the rest of the world continues to puff away. Huge markets remain for tobacco products for the foreseeable future.
* Sex - The sex industry is so enormous and much of it underground, that it is hard to find precise industry figures. But in recent years a number of companies in the pornography industry, condom manufacturing and even makers of drugs designed to enhance a sexual experience have gone public. Just like gambling, the internet brings a whole new dimension to this business. It may be a taboo subject, but there are companies doing very well selling pornography on the internet (though most of these firms are not publicly traded). Even if you ignore the more brazen products like Playboy and Hustler, there are a great many more innocuous industries that benefit from the sale of sex such as hotel and cable operators that make handsome sums from their pay-per-view movies.
* Defense - Although the defense industry represents one of those gray areas that we alluded to earlier, in most circles these stocks are considered sinful. The production of missiles, guns, tanks and fighter jets can be interpreted in different ways - either you view it as destructive and harmful to the entire human race or just to those in the country where the arms are destined, or you may feel that it is simply a proactive measure for protecting one's nation. Regardless of your ethical or moral stance on the issue, there is no debate on the profitability of the manufacture, sale and distribution of military equipment.
The important thing that an investor must be comfortable owning the stock, even if it has a phenomenal dividend track record. If you do not morally agree with gambling or smoking then these stock should not be in your portfolio, no matter if they are high dividend stocks or not.
Reminder: If you are interested in investing in high dividend stocks, then the one book that is a must read is The Single Best Investment: Creating Wealth with Dividend Growth. It will provide you with the background on why this style of investing works and how you can use it in your own portfolio.
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