The S&P 500’s performance this year, coupled with softness in key leading economic indicators, has reminded investors that there’s no such thing as a gravity-less rainbow. But savvy investors can take advantage of the selloff to find a real pot of gold.
During the Federal Reserve’s last tightening cycle, dividend-paying equities struggled in anticipation of the central bank raising interest rates and outperformed once the Fed did the deed. Could a similar scenario play out this time around?
Telecom’s biggest players continue to pull away from the competition, making these high-yielding stocks the only names in the sector worth owning. Meanwhile, yield moths eyeing closed-end bond funds need to understand the risks and be selective to avoid getting burned.
Master limited partnerships still offer above-average yields, but investors looking for safety and superior total returns in an uncertain business environment should focus on blue chips and names with supportive general partners that can drive distribution growth by dropping down assets.
Business development companies (BDC) entice income-seeking investors with big yields, but their spotty dividend history underscores the importance of doing your homework on these names and understanding the potential risks. Our survey of the space uncovers one BDC that’s suitable for aggressive investors.
The second installment in our three-part series on real estate investment trusts (REIT) focuses on mortgage REITs. You can read about our favorite Canadian REITs in The Wide World of REITs—Part 1. The next issue of Capitalist Times Premium will feature our favorite US REITs.
Although high yields make closed-end bond funds popular among income-seeking investors, these securities’ elevated leverage at a time when dividends and net asset values are at risk mean that most are ticking time bombs. We highlight four names for aggressive investors.
A surging dollar doesn’t necessarily spell doom for the international stocks in your portfolio. Although a stronger greenback reduces the value of these holdings and their dividends, these companies’ goods and services become more competitive in the US and other import markets.
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