If you are looking for low-risk low-reward dividend stocks, this article is not for you. However, if you're looking for high-income yields, and risks that are tilted in your favor, then you may want to consider the ideas highlighted in this article.
The ideas span a variety of investment types. REITS, Mortgage Reits and MLPs are a major class that pay high dividends but they are all with high risks.
I love high dividends because you get a nice income and your investment got a fast cash return which you can use for new investment ideas. But high yields shouldn't be the only criteria. Dividend stability is more important to look for.
Without further ado, here are the 17 attractive 10% yield opportunities...
The market’s had its ups and downs this year, but there is sure to be more volatility ahead of us in 2017. There is a lot of speculation over the health of the global economy. Will China keep falling behind growth expectations? Will the high market valuation cause a short-term sell off?
As long as the market has big questions with no concrete answers, there is sure to be more volatility ahead of us. When the global environment is uncertain, it is wise to reduce your market exposure by picking up some low beta stocks. Stocks with a low beta tend to see a lower magnitude of price changes compared to the broader market.
The secret sauce behind high performance is low volatility. Stock portfolios built with low beta stocks tend to outperform high-beta growth stocks. And you sleep at night without having to worry about big swings in the market.
It is foolish to assume that taking on more risk will produce higher returns. We all want the sure thing in business with no risk, but this is nearly impossible to find. But it possible to find low-beta stocks with steadily rising dividends or high dividends. I've done some research in order to find the best high-yield dividend stocks with low beta ratios.
These 20 stocks have high yields at low beta ratios...
Dividend stocks are all the rage now, for better or for worse, because bond yields have effectively dried up as the Federal Reserve kept interest rates at record lows.
I’ve been of mixed feelings about this trend, because the chase for yield has led income investors away from the relative safety of bonds and into dividend stocks, which do carry more risk.
Thus, as more and more money flows into dividend stocks, they start to get stretched as far as valuation is concerned. When it comes to stocks to buy, jumping in simply for the dividend isn’t a great idea.
That’s because, should the valuations of these dividend stocks contract back towards the mean, the loss will be in excess of the dividends paid out over several years.
So I’m trying to find options that are a bit less vulnerable to that kind of price contraction, while also offering a 7% yield or higher to offset some of the existing risk.
Here are the results...
