4 Ways To Boost Yields And Returns

On average, they're yielding 7.6%. That's nearly four times the yield of the S&P 500. Try getting that amount from a money market or savings account. But that's not the half of it. In tandem with those high yields, the capital gains have been great too. The average total return for 38 securities is 23.6%. The best performer has gained 131.6%, yet still yields 5.0%. This isn't the performance of some secret index or an exclusive hedge-fund's holdings. It's what is currently happening within the portfolios of my High-Yield Investing advisory. What's the secret to that sort of performance? How can you build a similar portfolio for yourself? Don't get me wrong -- I do an enormous amount of research and watch my holdings and the market like a hawk. But much of the good fortune comes from sticking to a few simple rules that you can use as well. Over the years, these rules have proven their value in bull and bear markets. The techniques are not complicated. Anyone can follow them and potentially get the same results. So I wanted to share with you, my fellow income investors, the four basic rules I follow to build my winning High-Yield Investing portfolios. I'm confident these tips can work for you as well: Rule #1: Look for high yields off the beaten path To find exceptional returns and yields, I frequently venture off the beaten path. Some of the best yields I've found have come from asset classes few investors know about. A case in point is Canadian real-state investment trusts (REITs). These REITs delivered exceptional yields this year (some as high as 12%), but many stateside investors have never heard of them. Other lesser-known securities I look at are exchange-traded bonds, master-limited partnerships and income-deposit securities. All of these usually yield more than typical common stocks. In addition, they can also be less volatile and hold up better during market downturns. If you're not familiar with these securities, then don't fret.123... Read more