Posted: 20 Feb 2019 12:57 AM PST
Investing is a lifetime journey, and getting started can feel frustrating. That can be the case with income investing, where the first dividend check might just be for a paltry few dollars. While growing a dividend over time can lead to a powerful return, if you're looking for high income now, there are plenty of opportunities available that can start showing you a much larger pile of cash relative to what you put in. These high-yield plays, typically paying in the 5-10 percent range, are companies that tend to be structured to pay out most of their income to shareholders. There are some tax differences between these companies and traditional ones, but that's well offset by the higher income these companies provide. Areas with high-yielding opportunities for investors include real estate investment trusts (REITs), business development companies (BDCs), and master limited partnerships (MLPs). By passing through most of their income to shareholders, they pay sky-high yields. They may not see the kind of share growth of a traditional company, but they do offer current income now… exactly the kind of opportunity that could turn a modest portfolio yield into a sizeable one, and help balance the lower-yielding stocks that you own. |
You are subscribed to email updates from TradingTips.com. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States |