2 high-yield stocks paying more than 8% to buy now

I really like discovering good high-yield stocks. As a dividend investor, I’m at all times in search of alternatives to lock in above-average passive earnings from rising companies. Of course, there’s at all times a threat. A excessive yield can typically be an indication of a enterprise that’s struggling to develop and may even be shrinking.The two corporations I’m taking a look at in the present day are each stocks from my private portfolio. They each boast a forecast dividend yield of more than 8% and revel in robust revenue margins. In my view, each companies have respectable medium-term progress potential.An 11% dividend yield?My first inventory is FTSE 100 mining and metal group Evraz (LSE: EVR). This £9bn group operates principally in Russia and North America. The newest dealer forecasts counsel Evraz shares supply a tremendous 11% dividend yield at present ranges.If you’re pondering that such a excessive yield is simply too good to final, then I believe you’re in all probability proper. In my view, the present excessive costs for iron ore and metal may weaken over the subsequent 12 months, chopping the group’s earnings.However, Evraz does have a powerful historical past as a high-yield inventory. Based on the present share worth, this inventory has supplied a mean yield of 8% over the past 4 years. Broker forecasts for 2022 counsel the inventory’s yield will fall to round 9%. That appears affordable sufficient to me.Evraz’s largest shareholder is Chelsea FC’s billionaire proprietor Roman Abramovich. He holds round 28% of Evraz inventory, whereas an extra 30% is held by two different Russian traders.My feeling is that these key traders need the enterprise to present them with an excellent earnings, so I anticipate dividends to stay a precedence. Trading on simply six occasions 2021 forecast earnings, I nonetheless see Evraz as a buy for me.This high-yield inventory may motor aheadCompanies promoting motor insurance coverage have confronted aggressive market situations in recent times, slowing their progress. This is why my second choose, Direct Line (*2*) Group (LSE: DLG), presently affords a forecast dividend yield of 8.3%.Story continuesRather than slashing its costs to win more enterprise, Direct Line has discovered a steadiness that’s allowed it to keep excessive revenue margins whereas protecting a secure share of the market. The result’s that this enterprise has continued to generate loads of spare money annually, funding beneficiant dividends.Of course, this example can’t final ceaselessly. The enterprise wants to return to progress or else it may begin dropping market share. To return the enterprise to progress, CEO Penny James has been investing in IT.The group’s new know-how is claimed to enhance its product choices and permit for more refined pricing. I’d guess this implies pricing threat more precisely, bettering the profitability of every coverage.The firm can be increasing into business insurance coverage, the place gross sales rose by 16% through the first quarter of this 12 months.I’m optimistic in regards to the adjustments taking place at Direct Line, so I’m pleased to proceed holding my shares and accumulating an 8% yield. I believe this high-yield inventory appears low-cost and will ship engaging returns over the subsequent few years.The put up 2 high-yield stocks paying more than 8% to buy now appeared first on The Motley Fool UK.More readingRoland Head owns shares of Direct Line (*2*) and Evraz. The Motley Fool UK has no place in any of the shares talked about. Views expressed on the businesses talked about on this article are these of the author and subsequently could differ from the official suggestions we make in our subscription companies akin to Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we imagine that contemplating a various vary of insights makes us higher traders.Motley Fool UK 2021