High-yield dividend stocks can deliver monster income streams, but they come with risks. Chemicals giant LyondellBasell recently slashed its dividend in half after yielding 12.6% - more than 10 times the S&P 500's 1.2% average. This highlights the danger of ultra-high yields, where payouts often exceed earnings and become unsustainable.

Conagra Brands now leads the S&P 500 with a 7.4% yield, making it an intriguing option for income investors. The packaged foods company expects to pay out about 80% of earnings this year, above its target range but still more conservative than LyondellBasell's pre-cut payout ratio. While inflation pressures margins, Conagra has reduced debt by over 10% in the past year and sees sales growth returning in the second half of fiscal 2024.

Delek Logistics Partners offers an 8.9% distribution yield as a master limited partnership in energy midstream. The MLP has raised distributions for 13 consecutive years and generates stable cash flows from long-term contracts. However, MLPs complicate tax filing with Schedule K-1 forms, which partly explains Delek's high yield.