Quit Suffering From Low Yields
This article originally appeared on Traders Reserve.
There are some less traditional income investments that every income investor should know about in this low-interest rate environment. Forget money markets, CD rates and dividend stocks that often don’t even beat inflation (giving you negative returns). Why bother with them when there are sectors and asset classes that offer you double the yield, along with nice capital returns.
Smart investors are finding new high-yield investments within industries that pay out yields in excess of 8% as a result of passing through higher profits from strong operations. The investments you can purchase in today’s market are by design pass-through securities, meaning they pass through 80%-90% of all net income to shareholders in the form of dividends and distributions.
Investments in closed-end funds, master limited partnerships and REITs that are raising their payouts because business conditions are strengthening, not because they are leveraged to the eyeballs like the companies financed by junk bonds or bad mortgage debt.
Here are six high-yield investments every investor should know about: