I Own 12 High-Yield Dividend Stocks. Here's the Best of the Bunch.

How high of a dividend yield does a stock need to have to be considered a high-yield stock? Opinions vary.

However, many investors would include any stock with a yield that's greater than that offered by 10-year U.S. Treasury notes. That yield currently stands at 3.48%.

Using this as the threshold, I own 12 high-yield dividend stocks. I plan to hold onto all of them for a while. But here's the best of the bunch.

Image source: Getty Images.

My dandy dozen

Let me first reveal the 12 high-yield dividend stocks in my portfolio right now:

Data sources for dividend yields: Google Finance, Yahoo! Finance.

There are two points of clarification I need to make. First, I actually own two Brookfield Infrastructure stocks and two Brookfield Renewable stocks. Both companies started out as limited partnerships (LPs) but later created separate corporate entities that trade under separate tickers from the LPs.

Both Brookfield Infrastructure stocks reflect the same underlying business. The same is true for both Brookfield Renewable stocks. I've only listed each company once in the above table and included the higher dividend yield for each.

Second, DoubleLine Yield Opportunities Fund technically isn't a stock -- it's a closed-end fund (CEF). However, it's listed on the New York Stock Exchange and trades just like a stock. Because of this, I have included it on the list.

A process of elimination

Some of my high-yielders are relatively easy to eliminate. Even though I only recently bought the DoubleLine Yield Opportunities Fund, I'm not sure that I'll hold it for an especially long time. This CEF owns bonds. If the environment for bonds sours, I'll sell it.

Viatris comes off the list, as well. I actually never bought this stock. When Pfizer merged its Upjohn unit with Mylan, I received a modest number of shares of the new entity. Although I've held onto Viatris stock and love its dividend, I'm not overly excited about the company's growth prospects.

There are two real estate investment trusts (REITs) in the group. Innovative Industrial Properties (IIP) leases properties to cannabis operators. Changes to U.S. banking laws that open the door to widespread lending to companies in the cannabis industry could hurt IIP.

Medical Properties Trust (MPT) leases properties to hospital operators. It's a relatively high-risk stock because of the financial difficulties that several of its tenants are facing. I feel good about the prospects for IIP and MPT, but their risk levels warrant their removal from consideration.

I can also scratch off all of the oil and gas stocks on the list: Devon, Enterprise Products Partners, ONEOK, and Williams Companies. Don't get me wrong -- I like all of these stocks right now. However, it's possible that they could become less attractive down the road with the shift from fossil fuels to renewable energy sources.

The two high-yield big pharma stocks in my portfolio face some headwinds. AbbVie's best-selling drug Humira will experience a steep sales decline as it battles biosimilars in the U.S. market. Several of Pfizer's top drugs lose exclusivity over the next few years.

My view is that both stocks will perform better than many expect. Because of the risks, though, I'll eliminate both from contention.

The best of the bunch

That leaves two remaining stocks: Brookfield Renewable and Brookfield Infrastructure. Which is the best of the bunch? It's not an easy decision.

Brookfield Renewable offers a slightly higher dividend yield than Brookfield Infrastructure does. Both companies expect to deliver solid growth over the long term, and both businesses are solid.

However, Wall Street's consensus price target for Brookfield Renewable reflects a much higher upside potential than the consensus target for Brookfield Infrastructure. I don't always go along with what analysts project, but this makes sense to me. The opportunities in renewable energy are hard to beat.

My pick for the best high-yield dividend stock in my portfolio, therefore, is Brookfield Renewable. It's possible, though, that one or more of the other stocks I own (including those that don't pay high dividend yields) could generate even better total returns. That's why I haven't put all my eggs in one basket.

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Keith Speights has positions in AbbVie, Brookfield Infrastructure, Brookfield Infrastructure Partners, Brookfield Renewable, Brookfield Renewable Partners, Devon Energy, DoubleLine Yield Opportunities Fund, Enterprise Products Partners, Innovative Industrial Properties, Medical Properties Trust, ONEOK, Pfizer, Viatris, and Williams Companies. The Motley Fool has positions in and recommends Brookfield Renewable, Innovative Industrial Properties, and Pfizer. The Motley Fool recommends Brookfield Infrastructure Partners, Brookfield Renewable Partners, Enterprise Products Partners, ONEOK, and Viatris. The Motley Fool has a disclosure policy.