Income investors continue to be pulled down as the trend on interest rates are affecting their ability to earn income. The rate on the 10-year U.S. Treasury Note has declined from above 3.0% in November 2018 to briefly cross under 2.0% earlier this week — its lowest level since 2016. I think everyone will agree that 2% does not meet most income goals.
In the recent past, income investors have focused on bonds and dividends from stocks to serve as investment income. Today, the overall yields are lower for new money. There are a number of opportunities to create high yield income. Here are a few on my list:
1)Sell calls on the stocks in your portfolio. This can create 2-4% of premium income each month on your stocks. There is a risk of having your stock called away but this is a tradeoff to produce higher incomes. We do this monthly to generate income in the Get Rich Monthly Income Plan;
2)Invest in ETNs (exchange-traded notes) that produce high yields. We recommend notes paying monthly dividends. A couple to evaluate include MRRL with a 23% yield, SMHD with a 22% yield, CEFL with a 17% yield to name a few. We have a comprehensive list of these investments with yields above 15% available to subscribers;
3)Monthly dividend stocks with high yield. These include OXCL with a 16% yield, ORC with a 15% yield and others. You must be interested to have such high yields with monthly payments;
4)Royalty trusts that pay monthly income can be a great way to diversify your holdings. This includes investments such as ROYT with a 15% yield, PRT with a 12% yield and PVL also with a 14% yield; You can also find trusts in metals such as gold and natural resources;
5)ETFs of various types can provide high yield. This may include JQC at 15% yield, CEN at 16% yield and more.
As you can see, there seems to be endless opportunities to invest for high yield. If you select from the types of investments listed, you can create a diversified portfolio for all market conditions. And, the stocks and funds listed here all pay monthly dividends. Imagine having 30 or more monthly paychecks via passive investing – I call this living the life!
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