Even These Stocks Can Pay You Back

Investors have gotten increasingly frustrated with companies that hoard their cash instead of putting it to better use -- like paying dividends to shareholders. But if you like a particular stock as an investment, but also need to draw income from it, there’s still a way to turn you shares into a stream of income. Hanging onto their money It’s not hard to understand why companies want cash on hand. After 2008’s financial crisis, it became nearly impossible to raise capital. Many companies had to resort to secondary offerings of stocks at bargain-basement prices just to stay in operation. AIG (NYSE: AIG) and Fannie Mae and Freddie Mac took deals from the U.S. government that nearly wiped out existing shareholders. Others, including Manulife Financial (NYSE: MFC) and DryShips (Nasdaq: DRYS), got more conventional equity financing through private underwriting. No corporate executives ever want to be in that position again if they can help it.... Read more