Revealed: How to Get High Yields Now...READ MORE
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 | | Revealed: How to Get High Yields Now | | Dividends are often derided. With the average stock paying less than 2 percent, it's easy to see why. That kind of return doesn't seem to add much value. While we know it can over time thanks to compounding effects and reinvestment, many investors don't want to wait for that to play out. In short, they want high income, and now.
Fortunately, there are plenty of companies showing investors the money. Many companies routinely throw out anywhere from 5 to 10 percent of their price in cash, year after year. In fact, there are some types of companies that are structured to pay out money to investors.
That's great news for investors looking for higher cash returns now. While that may mean they don't get as much potential for capital gains, they can get cash in hand now.
Best of all, these high-yield powerhouses offer investors returns in a variety of interesting and diverse industries. Real estate investment trusts, or REITs, offer high current yields. That's because they're legally required to pay out 90 percent of their income to their shareholders. And their assets are backed by anything from single family homes to warehouses to office buildings to land to mortgage debt.
But other sectors also offer great returns. Partnerships, including limited partnerships and master partnerships, have a similar structure that requires them to pay out earnings to their shareholders. Most of these companies have investments in hard assets from oil and gas pipelines to timber.
Another class of high-yielding stocks are in the business development company (BDC) space. They lend out money to smaller, fast-growing companies that are looking for loans but aren't publicly traded or can't get conventional lending from a bank or other institution. The BDC may make a loan or take on equity, essentially making them a small, high-yielding fund of small, fast-growing companies.
While traditional dividend yields can be low, investors looking for current income don't have to accept low yields. With some of these high-yielding plays, they can make up to double-digit returns.
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