3 Flavors of High Yield Investments

Traditional income investors have been in despair for years now since the Fed adopted its zero interest rate policy and doesn’t appear to be changing course any time soon. Conventional safe investments like savings, CDs and money markets have continued to actually lose money to real inflation and will likely do so for years to come. Investors willing to take on some equity risk can be rewarded and protect themselves simultaneously by seeking out income instruments across various classifications as outlined below. Foreign High Yielders There are some interesting ADRs (American Depository Receipts) that trade on US exchanges that provide investors with numerous benefits: High Yields, Currency Hedging and Geographic Diversification. Let’s take a look at just one of these. British American Tobacco (BTI) – This outfit, much like its American counterparts, provides a very high dividend yield (currently estimated at over 6%) because investors expect to be rewarded for... Read more