If a company has debt, it can be beneficial if the company can earn far more than the interest expense. But there are drawbacks to incurring debt. When times get tough, earnings drop, and the business can't afford the debt service, then the viability of the company is at risk. Many strong companies are debt free, such as Apple (AAPL) and Amazon (AMZN). If you put the debt free trait with a high yield, you should end up with a successful investment. There are a selection of over ten stocks on the latest No Debt High Yield Stocks List at WallStreetNewsNetwork.com, which have yields ranging from 2% to above 9%, all of which are free of debt. One example is Paychex, Inc. (PAYX), which provides human resource, payroll, and benefits outsourcing solutions to primarily small and medium size businesses. This debt free company pays a yield of 4.3%, and has been paying quarterly dividends since 1994. It trades at 17 times earnings. Earnings for the latest quarter were up 12.9%, on a 8.6% increase in revenues. Another example is Erie Indemnity Co. (ERIE), an insurance company based in Erie, Pennsylvania, which also has no debt. The stock sports a yield of 2.6%, and a forward price to earnings ratio of 25. Net income per diluted share for the latest quarter was up 6.1% year over year, on a revenue increase of 35.9%. Several of the stocks on the list are royalty trusts such as the Sabine Royalty Trust (SBR) which is debt free and yields 7.8%. To see a free list of many other companies that have no debt and pay high yields , half a dozen of which pay more than 6%, go to WallStreetNewsNetwork.com. The list can be downloaded, sorted, and updated. Disclosure: Author owns AAPL and AMZN. By Stockerblog.com