High-yield dividend stocks with attractive valuations allow investors to generate extra income. Read why these stocks also reduce portfolio volatility.

Let's discuss some reasons why Realty Income (NYSE: O) and Dollar General (NYSE: DG) are good enough to buy and hold for the long haul. Founded in 1969, Realty Income is one of America's best-known real estate investment trusts (REITs) -- a type of company that receives tax benefits for returning most profits to shareholders via dividends.

The recent inflation read came in below market expectations at 2.8%. This was seen as a positive sign, and most stocks opened higher. However, the recovery in these stocks is still on shaky ground. Dividend stocks with very high yields can be a much better bet if inflation unexpectedly trends significantly lower in the coming months.

If Trump 2.0 rhymes with Trump 1.0, then this is an intriguing time to consider small cap dividends. Let me explain—and highlight a handful yielding up to 12.6%.

The Nasdaq Composite (NASDAQINDEX: ^IXIC) started this week tumbling 4% on Monday -- the index's worst day since September 2022 -- and is still 12.5% off its all-time highs after today's trading session.

Some investors are sheltering from market swings in shares of companies with high payouts.

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