These high dividend yields may be too good to be true

Some stocks with high dividend yields may be unable to sustain them, says Piper Sandler.

Investors may want to be more selective when it comes to stocks with high dividend yields, according to Piper Sandler. The warning comes amid an earnings season that has been marked by solid results from megacap technology companies. Yet, Piper points out that small- and midcap reports have been "lackluster at best," seeing no trace of a broad-based recovery.

The pharmaceutical chain has the highest dividend yield on the list at 9.4%. However, its ability-to-sustain ratio is well below than the greater-than-one threshold. Shares have plunged more than 60% this year. Walgreens also saw its worst day on record on June 27, when it fell more than 22% on the back of weaker-than-expected earnings for the fiscal third quarter and plans to close underperforming U.S. stores.

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