If you are an income investor, you may think overseas investing is best left to the pros. But you’d be wrong. A bit of research shows plenty of low-risk opportunities for U.S. investors seeking high yields in the global market. Investing globally is a good idea because it provides a chance to participate in the faster-growing economies of emerging markets like Brazil, which International Monetary Fund (IMF) forecasts will grow 4.5% this year – much faster than the U.S. growth rate of 3%. Looking abroad also provides more choices and the ability to… Read More

If you are an income investor, you may think overseas investing is best left to the pros. But you’d be wrong. A bit of research shows plenty of low-risk opportunities for U.S. investors seeking high yields in the global market. Investing globally is a good idea because it provides a chance to participate in the faster-growing economies of emerging markets like Brazil, which International Monetary Fund (IMF) forecasts will grow 4.5% this year – much faster than the U.S. growth rate of 3%. Looking abroad also provides more choices and the ability to diversify risk across multiple economies and geographies. #-ad_banner-#In addition, investing overseas often earns better returns. For example, the S&P gained 23.5% last year, but returns for emerging markets in Brazil, India and China were 80% or higher. The developed markets of Australia and Canada returned more than 30%. Foreign stocks also tend to have better yields because overseas companies typically distribute more of their cash flow back to investors. The yield on the S&P 500 currently averages less than 2%, but stocks in the developed markets of Europe and… Read More

Many income investors focus mainly on yield when they should be giving at least equal weight to dividend growth, as well as prospects for future gains. Why is dividend growth so important? The answer is simple: Even modest yearly increases in the dividend… Read More

Savvy investors know how to be creative and seek rich yields in unusual places. With the average S&P 500 stock yielding less than 2%, you have to explore off the beaten path to find big dividends. Luckily, there are little explored corners of the investment world where great yields can still be found. You just need to know where to look. Carla Pasternak is an expert in this area. Every month her High Yield Investing newsletter searches out exceptional yields and, more often than not, she finds them in unusual places. Here are four high-yielding asset classes… Read More

Savvy investors know how to be creative and seek rich yields in unusual places. With the average S&P 500 stock yielding less than 2%, you have to explore off the beaten path to find big dividends. Luckily, there are little explored corners of the investment world where great yields can still be found. You just need to know where to look. Carla Pasternak is an expert in this area. Every month her High Yield Investing newsletter searches out exceptional yields and, more often than not, she finds them in unusual places. Here are four high-yielding asset classes Carla recently highlighted in her newsletter. Most are unfamiliar to the average investor, yet each offers hefty dividends. 1. Business Development Companies (BDCs) BDCs are the 21st century version of venture capital funds. There are only about three dozen of them out there, but most pay sizable yields, with a few exceeding 11%. BDCs make loans to small companies, often taking an equity stake as well, and pass the income along to their investors. BDCs paying great dividends right now include Black Rock Kelso (Nasdaq: BKCC), which yields 11%, and… Read More

This New Year, income investors like me will likely be finding some of the richest dividend yields overseas. As a general rule of thumb, foreign stocks often have higher dividend payouts than their U.S. counterparts, and pay a much larger dividend as well. While lately there’s… Read More

As an income investor, I occasionally feel forced to choose between growth and a hefty dividend. Finding a high yielding stock that also has good growth potential is a rarity. One reason for that may be that fast-growing companies often don’t pay a dividend. Instead, these companies re-invest… Read More

Like most investors, I’m usually looking for the safest and most attractive income streams. I search for stocks offering the highest yields, most reliable income and best opportunities for dividend growth. But there is a flip side to this bright picture. Some stocks look like safe income plays on the surface, but are really ticking time bombs. These stocks pay out more in dividends than they earn. Eventually, funds run out and they are forced to cut the dividend. For this reason, every income investor should know the warning signs of a… Read More

Like most investors, I’m usually looking for the safest and most attractive income streams. I search for stocks offering the highest yields, most reliable income and best opportunities for dividend growth. But there is a flip side to this bright picture. Some stocks look like safe income plays on the surface, but are really ticking time bombs. These stocks pay out more in dividends than they earn. Eventually, funds run out and they are forced to cut the dividend. For this reason, every income investor should know the warning signs of a stock in danger of a dividend cut. The most obvious sign is a dividend payout at or near 100% of earnings. That means every penny the company makes is supporting the dividend — nothing is left over to re-invest in the business or pay back loans. There are other danger signs to watch out for as well. Earnings power is key. If a company can’t grow earnings, odds are that dividend growth will stall as well. Companies with large amounts of debt are especially risky, since… Read More

The secret is out.  As an investment, sin wins. Most companies engage in what we think of as “respectable” businesses like building computers, selling appliances or discovering new cures for diseases. But there are companies that aren’t so squeaky clean. These so-called “sin” stocks… Read More