5 Stocks Paying Big Dividends

In a low interest rate environment, investors are understandably hungry for yield. In that case, dividend stocks can fulfill a nice niche. The following companies all offer dividend yields above 5%. Of course, it should be noted that high dividend yields often come at a price. If it was so simple, why wouldn't more investors purchase these stocks? Garmin GRMN The maker of GPS devices offers a dividend yield of about 5.1% -- solid to be sure. Yet, that comes at a price: risk of capital. Shares of Garmin have dropped nearly 30% over the last year. The growing trend of mobile Internet devices with built-in GPS has eroded demand for Garmin's products. Still, if investors want to wager that shares are cheap at these levels, they will be rewarded with a good stream of dividends. Altria Group MO and Lorillard LO Both are tobacco companies with great dividend yields, 5.08% and 5.30% respectively. Tobacco companies are known for offering great dividends in general. Still, many investors may have moral issues when it comes to investing in companies whose products have damaging health effects. There's also the outside chance that government regulation could stifle the companies' sales going forward. Six Flags Entertainment SIX Shares of the amusement park operator have rallied over 300% since August of 2010. Even with such a powerful move higher, the stock still yields about 5.40%. In this case, it may simply be an issue of shareholders afraid of history repeating itself. Six Flags filed for bankruptcy in June 2009, wiping out shareholders. The new company appears to be in much better shape, but the dividend yield remains high. FirstEnergy FE The Ohio-based utility yields nearly 5.50%. Utilities, like tobacco companies, are known for paying solid dividends. FirstEnergy's dividend is one of the highest in the sector. FirstEnergy posted earnings Monday that were inline with expectations, but shares tumbled after the company said it planned to sell about $300 million worth of stock in late 2013. Several analysts cut their price target early Tuesday.