Wednesday, February 20, 2013

Income Stocks Yielding Over 7%

In a world of low interest rates and a volatile stock market it is no surprise that investors have been searching out high yielding stocks to compensate for low yielding bonds.

With the 10-year Treasury yielding 2% it is barely keeping up with inflation. And when rates start to move higher in the coming years the 2% you are locked in at becomes even more unattractive. This is only one reason to stay away from US Treasury bonds.

It is time to think outside the box. We have built an all-ETF Income Portfolio as part of our ETF Bulletin newsletter service. It is currently yielding over 6% and is up over 10% since June of last year!

We also work with individual stocks and there are a handful out there that yield over 7% and I wanted to share a few with you. (** Investors must remember with such high dividend yields there is elevated risk.)

  • Seadrill ($SDRL) - Dividend Yield 8.9%. The oil equipment company and driller has been consolidating lately and could be set to rebound.
  • TICC Capital Corp ($TICC) - Dividend Yield 11.0%. A business development company that invests primarily in technology-related companies via loans.
  • Rentech Nitrogen Partners ($RNF) - Dividend Yield 7.1%. Produces nitrogen fertilizers and other agricultural chemicals.

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