When investors go looking for dividend stocks, they are often attracted to the stocks that have the highest yield. Who doesn’t like an 8% yield? I know I do.

Some stocks with high dividends are not quality investments. Here are 5 high yield stocks that we like and why.

1. Ambev – ABV – Yield: 4.30%

Ambev is a Brazilian beverage company that distributes it’s beverages to 14 different countries in North and South America. Their dividend yield is much lower than their 5 year dividend average of 14% indicating that it is currently undervalued. This monthly paying dividend stock is a great way to generate monthly income. They have a modest 5 year dividend growth rate of almost 8%.

2. Century Link – CTL – Yield: 6.90%

Centruylink is a communications company with a big dividend yield. The dividend payout ratio is a little high at 90% but this stock has been increasing it’s dividend for more than 35 years making me think the dividend is safe. The five year dividend growth rate is 60%.

3. Senior Housing – SNH – Yield: 6.30%

Senior Housing properties trust is a REIT that owns around 300 properties most of which are senior living properties. With baby boomers about to move into retirement I’m very interested in senior living investments. SNH is slightly undervalued compared to its 6.8% 5 year dividend average. The growth rate is only about 2% but they have been increasing their dividend for the last 9 years. They are on their way to establishing a solid dividend track record.

4. MFA Financial – MFA – Yield: 11%

There has been a lot of news this week about banks being able to raise their dividends. Trust is starting to come back to the banks as they increase their cash positions. MFA financial is a REIT that invests in different mortgage backed securities. Their yield is huge at 11% and they have been increasing their dividend at 31% over the last 5 years. Their quarterly dividend payouts can be a little choppy but this year they stepped it up to .2350 per share.

5. Dynex Capital – DX – Yield: 9.40%

Dynex capital also invests in mortgage backed securities but theirs come from Fannie Mae and Freddie Mac. They have increased their dividend over the last 2 years and currently have a huge 9.4% yield.