Everyone is searching for yield. Even the bond king, Bill Gross of PIMCO, is talking about high-yield stocks. Investors see a dividend yield, like the idea of that check coming in and buy the stock often forgetting they are buying a company,
and a stock, that has to perform in the real world and in the market.
This adds up to a high-yield bubble, as evidenced by the historical low dividend payout ratio for the S&P 500. Dividend stocks have been bid up so much yields continue to fall.
If this is true, what are you supposed to do to generate reasonable monthly, quarterly or annual income?
Invest in high-yield plays… just make sure they are the right ones. Income investors should look at the company first, the stock second and then the yield and go for growth first, income second.
Stop Worrying About Low Yields and Start Enjoying Endless Income. How would you like to add $5,000, $10,000 even $25,000 a year or more to your income – combined with capital gains that are as much as twice the market? Discover these little known “Money Engines” that churn out cash, month after month. Get Your Own Endless Income.
Continue reading for five of my favorite high-yield plays that I found using this approach.