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Continuing on in our series of top 5 stocks in different categories tonight we will visit the top 5 high-yield stocks. This list will not be a list of simply the highest yielding stocks available, rather it will be a list of stocks that yield a good amount, but also have an attractive business model. We will look for stocks that can appreciate and add in solid dividend returns. In the list, companies who have  consistently raised their dividend yield year after year will be ranked higher, since this is usually a sign of a healthy balance sheet.

1. Wachovia Corporation (NYSE: WB)- This bank recently raised its dividend 14%, and now yields 5.2% annually. The stock has a PEG ratio of just 1.14 and trades at less than 10 times this year's estimated earnings.

2. General Electric Company (NYSE: GE)- This stock has a hearty 3.00% dividend yield. The company is the largest conglomerate in the world and has many strong businesses. The company has raised dividends consistently for years now and has a very healthy balance sheet.

3. Johnson and Johnson (NYSE: JNJ)- The most consistent dividend increaser of them all. The company has increased the dividend annually for 45 year consecutive years. This is an amazing testament to the strength of the financial standing at Johnson and Johnson. The company also trades at a historically low valuation right now.

4. Masco Corporation (NYSE: MAS)- This stock sports a dividend yield of 3.54% and the company has increased dividends constantly in the past 50 years. The company has been a top performing stock year in and year out until the past 3 years or so.

5. The Allstate Corporation (NYSE: ALL)- The stock currently yields 2.76%. The stock is currently trading at a price to earnings ratio of just 6.51 times this year's earnings estimates. The company has a solid balance sheet with a good cash position and strong free cash flow to continue raising the dividend yield in the future.

These five are stocks to consider if you are looking for high-yield stocks that could also appreciate well over the years. It is important to remember that companies with dividend yields up above 6 or 7% usually have financial trouble and will soon be dropping the yield. Buying a stock just for a high dividend yield is not a good strategy. There are some sources on the internet that can help you in your search for quality high-dividend yielding stocks. Dividend Detective has a free list of some stocks with the highest dividend payouts. S&P also ranks a dividend aristocrat portfolio of companies who continually raise their dividend yields.

Dividends are a great thing to look for, but must be used in conjunction with other analysis in picking stocks.

Previously covered on GrowYourFunds Top 5 stocks in each category :

Top 5 large cap growth stocks

Top 5 large cap value stocks