If you have savings sitting in a bank account earning a pitiful less than 2% interest you need to improve your return. Yes, the bank is safe and you cannot lose your money. Putting money into the stock market is always risky but you should never buy and hold any stock forever. One needs to keep track of all investments. If you have a $10,000 savings account at 1.5% interest you earn $150 for the year. At 10% you earn $1000 per year. Which investment do you want to make?
I break down investment into the following areas: property, bank savings accounts or cash, so called blue chip stocks, high yield income trusts, income funds and stocks. High yield does not have to mean high risk. I have studied fifty such high yield investments and hold most of the ones I mention in this article. There are hundreds of these high yields investments listed on the stock exchange. Why more people do not invest in these high yield funds, trusts, and stocks is a mystery to me. Many of these have at least a 5 to 10 year track record. Yes, they go up and down with the market but you can always sell if a big drop in the stock market happens and buy it back at the low point. Ride them back up and you can make some big returns. They trade just like stocks.
Very rarely do you hear Cramer speak about these investments. Every now and then he gives a heads up to NLY which yields over 14% a year but that is about it. Cramer is about mad money and trading. If you need to generate a steady income stream then the investments below may be considered.
Out of the fifty high yield investments, I have selected six that offer yields over 9% a year and are somewhat very stable over time. All of these have at least a 5 year track record of pay outs. You can look at the history and current prices at www.bigcharts.com . Most of these pay monthly distributions. Which means if you do not take the cash out then you can reinvest your money to compound it. All of these can be purchased and sold just like common stocks. With on line trading it is easy to buy or sell whenever you like.
PHT - Pioneer High Income Trust, now at $16.49 per share has an 8 year track record and currently provides a yield of 10%. This pays out monthly so a 10% yield /12 months = 0.833% per month.
PHK - Pimco High Income Fund, now at $13.85 has an 8 year record and provides a yield of 10.5%. Payment is made monthly.
EOS-Eaton Vance Enhanced Income Fund has a 6 year operating record and now yields 9% per year, currently at $12.28.Distribution is paid monthly.
EAD-Wells Fargo Advantage Income Opportunities Fund II, at $10.05 has an 8 year record and yields 10.1%. Distribution is made monthly.
AGD- Alpine Global Dynamic Dividend Fund now sells for $7.73 and yields 9.3% it has about a 5 year track record. Payout is made monthly.
NLY- Annaly Capital Management Inc. has been around 10 years and yields over 14%. Dividends are paid quarterly.
Purchasing these six can provide you with your own high yield custom made mutual fund. These cover property, global stocks, bonds, and so forth. Obtain a copy of the prospectus before you buy. DISCLAIMER / WARNING: Use this information at our own risk. The writer is not responsible in any manner for any loss readers may have in the market. This article is meant to be educational information only. Reading this article absolves the writer of any and all legal actions by direct or indirect parties. The writer is not a professional trader or financial advisor.
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