A High Income Investing Oddity

Posted by Carla Pasternak - Dividend Opportunities

Share on Facebook

Tweet on Twitter

If You Don’t Know About This Income Investing Oddity, Pay Attention

I know what income investors like.

If I put a double-digit yield in the headline of an article, it will see thousands more reads than an article without a big headline yield.

I can put “safety” in the headline. I can put in enormous capital gains. But yield is what really excites income investors.

That’s one of the reasons I have a “10%-Plus” Portfolio in my High-Yield Investing advisory. To be included, a security has to pay double-digits at the time it’s added. No exceptions.

But there’s a secret to those high yields I’d guess most income investors don’t know.

Take a look below. I’ve shown the performance of my current holdings in the “10%-Plus” Portfolio (to be fair to High-Yield Investing subscribers I’ve redacted the ticker symbols).

Why are the yields you see here below 10%? Nearly all the holdings in the portfolio have risen since I added them. That lowers the current yield, but those who bought when I highlighted the play are still earning 10% or more on the initial investment.