Income investors seeking higher yields than the S&P 500's modest 1.3% have the opportunity to invest in real estate investment trust W.P. Carey with a 5.5% yield and Canadian banking giant Bank of Nova Scotia with a 6% yield. Despite recent dividend adjustments, both companies present promising prospects for long-term growth.

W.P. Carey, a real estate investment trust, made the decision to trim its dividend earlier this year after restructuring its portfolio to reduce exposure to office properties. This move was aimed at improving long-term prospects and shareholder value. Despite the initial dividend cut, the company has already resumed its quarterly dividend increases and is well-positioned with high liquidity for future investments, indicating a strong potential for growth.

On the other hand, Bank of Nova Scotia has paused its dividend growth for at least a year as part of a strategic business transformation. The bank's shift from less profitable Latin American markets to focus on North America aims to enhance its performance metrics and competitiveness in the sector. By redirecting its efforts towards more desirable markets, such as Mexico and the U.S., Bank of Nova Scotia is positioning itself as a potential North American banking powerhouse in the coming years.

While investing in high-yield dividend stocks like W.P. Carey and Bank of Nova Scotia may involve added risk compared to lower-yielding options, these companies have taken strategic measures to drive future growth. For investors willing to balance yield with potential rewards, both W.P. Carey and Bank of Nova Scotia offer compelling opportunities to strengthen dividend portfolios in the long run.