The ‘New Normal’ For High-Yield Stocks – And What It Means For You

Posted by Nathan Slaughter - Dividend Opportunities

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UnknownI would love to be able to showcase high-quality, low-risk stocks and bonds with robust yields of 9% or better to my High-Yield Investing readers week in and week out. If I did, I would likely be writing to you from my own private island somewhere in a tropical paradise — because it would mean that I had access to a secret asset class that had eluded even the sharpest hedge fund managers.

Even assuming these 9% yielders had zero capital appreciation, we would still be whipping the market, which has delivered an average total return of 6.8% per year over the past decade. It’s not easy to beat the market, period, but it’s next to impossible to do so with income alone.

The fact is securities with 9% yields were commonplace after the 2008 crash. But today they are exceedingly rare.

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