These high-yield dividend stocks have enough earnings to cover the dividends and make these stocks secure. The companies have what is known as a low payout ratio — the comparison between the cost of dividends and the company’s earnings.

It’s important to pay attention to the payout ratios of dividend stocks before investing. Many times, the only reason the stock has a high yield is that most or all of the company’s earnings are being paid out in dividend. The market knows this and drives down the price (thereby increasing the yield on the stock) because it suspects the company may have to cut its dividend.

But that is not the case with the stocks in today’s gallery, since the payout ratios are low even while the yield is high. This implies that the market is simply mispricing the underlying value of the company. That makes them good investment opportunities.

Let’s dive in and look at these high-yield dividend stocks.

American Int’l Group (AIG)

Dividend Yield: 2.5%

Multi-line insurance company American International Group (NYSE:AIG) has a low payout ratio and a yield of 2.4%. That is based on its annual dividend of $1.28 which is just 2.5% of Monday’s close of $51.63.

The $1.28 dividend is 24.2% of analysts’ forecast earnings per share (EPS) of $5.29 for 2022. It is even lower based on 2023 EPS forecasts of $6.34. This also puts the stock on a forward P/E of 9.8x for 2022 and 8.1x for 2023.

In addition, given that the stock has a tangible book value per share (TBVPS) of $69.30, its price-to-TBVPS is 0.75 — well below 1x. This also confirms how cheap AIG stock really is now.

Jefferies Financial Group (JEF)

Dividend Yield: 4.2%

Jefferies Financial Group (NYSE:JEF) is an NYC investment bank that yields 4.2% and trades below book value and is on a cheap forward P/E multiple of just 7.8x for 2022 and 6.8x for 2023.

In addition, the stock has a tangible book value per share (TBVPS) is $35.79, according to Seeking Alpha. So at $27.07 at the close on June 13, the P/TBVPS is 0.76x.

Moreover, given that its forecast earnings of $3.48 for 2022 more than covers the dividend payment of $1.20, JEF stock has a payout ratio of just 34.5%. That is because the ratio of $1.20 in dividends to the $3.48 EPS is 0.345.

In other words, even if the earnings of the company were to fall by 50% to $1.74 in the ongoing recession we are likely going to experience, the company can still keep paying its dividend. Granted that would push the payout ratio higher, but American companies like to keep their dividends steady.

Invesco (IVZ)

Dividend Yield: 4.7%

Invesco Ltd. (NYSE:IVZ) is a very attractive investment management stock. The company produces fees from assets under management, rather than from a spread like banks.

Moreover, the stock now has an attractive dividend yield of 4.7%. This is based on its dividend payment of 75 cents annually and its price as of June 13’s close of $15.93.

Invesco’s earnings forecast of $2.49 for 2022 more than covers the 75-cent dividend. That puts the payout ratio at less than 31% (i.e., $0.75/$2.49 = 0.301).

This also means IVZ stock trades on a forward multiple of just 6.4x 2022 EPS and 5.8x 2023 earnings (with its $2.77 EPS forecast). It also implies that earnings will grow 11.1% in 2023 over 2022.

Prudential Financial (PRU)

Dividend Yield: 5.1%

Prudential Financial (NYSE:PRU) is an insurance company, investment management firm, and financial services company that pays an annual dividend of $4.80. This gives PRU stock an annual yield of 5.1% at its closing price on June 13 of $94.25.

Moreover, as analysts forecast that earnings per share (EPS) will reach $11.54 as of 2022, the company has a payout ratio of 41% for 2022 ($4.80/$11.54). For 2023, the EPS forecast of $12.63 gives the stock a dividend payout ratio of just 38% (i.e., $4.80/$12.63).

Therefore, PRU stock has a forward P/E multiple of 8.2x for 2022 and 7.5x for 2023. Moreover, this stock trades for just 80% of its TBVPS of $117.06 as of March 31, according to Seeking Alpha. That is calculated as follows: $94.25 price/$117.06 TBVPS = 0.8.

So at 5.1%, this is one of the best high-yield dividend stocks, since it has a low earnings multiple and sells for less than its TBVPS.

Altria Group (MO)

Dividend Yield: 7.6%

Cigarette volumes at Altria Group (NYSE:MO)  (parent of Marlboro cigarettes) are continuously declining.  But the company’s cash flows more than cover its ample dividend, which gives the stock a high yield of 7.6%

For example, analysts now forecast that earnings for 2022 will reach $4.85 in 2022 and grow by 5.5% in 2023 to $5.12. This means that the dividend of $3.60 has a payout ratio of 74% in 2022 and 70% for 2023.

Moreover, this puts the company’s forward P/E multiple at just 9.7x for 2022 and 9.2x for 2023. That is very cheap. In addition, the company is slowly moving out of cigarettes. It now has a controlling stake in a cannabis company in Canada called Cronos (NASDAQ:CRON) plus a 10% stake in Anheuser-Busch InBev (NYSE:BUD).

NRG Energy (NRG)

Dividend Yield: 3.5%

Houston-based electric utility NRG Energy (NYSE:NRG) has a dividend yield of 3.5% based on its price of $40.55 as of the close on June 13 and its annual dividend of $1.40.

Moreover, given that analysts forecast that its 2022 EPS will reach $3.96, its payout ratio is just 35.3% for 2022. With earnings forecast to grow 20% to $4.76 in 2023, the payout ratio falls to just 29.4%. In other words, the company can well afford the high-yield dividend payments.

Moreover, based on these forecasts, NRG stock has a low P/E multiple of just 10.2x for 2022 and 8.5x for 2023. This makes it one of the cheaper high-yield dividend stocks on this list.

On the date of publication, Mark Hake did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.