Matthew Waterman
0
All posts from Matthew Waterman
Matthew Waterman in Brand Power,

Tons Of High Yielders On Sale Right Now. Get 7-18% On Your Money Passively.

This has been an extremely rough week so far if you are into collecting dividends, especially the kind that leveraged investments create. It's looking more and more likely that the Fed will start to raise rates in December, and the game of musical chairs that the market has apparently been sitting on is finally starting to shuffle, and I think if you jump in there you might be able to score a few above average deals while the market is in selloff mode. Some of these investments saw dividend cuts already this year, so I recommend not going whole hog, but maybe getting a mix of these taking up 5-10% of your porfolio can bring you some nice income. Here are a few that I like:

Prices based on market close as of 11/12/15.

Pimco High Income Fund (PHK) - Yield is 14.75% based on a forward monthly payment of 10.3 cents per share. The fund saw a cut this year, and it is possible that there will be more. There is some unpredictable interest rate risk here, but to me the time horizon is in your favor buying.

Prospect Capital Corp. (PSEC) - Yield is 13.77%, based on monthly payments of 8.3 cents a share. Of the bunch here, this is one of the safest. They use less leverage, and have an equity portion of their investments that will actually benefit on increased rates.

Annaly Capital (NLY) - 12.63% yield. This one might seem like a stinker with the extremely long history now of price declines, but odds are good now that it's not going to get much worse. The leverage ratio is at a historical low. The dividend might see more cuts if they can't find enough new mortgages to buy, but I would feel ok about adding more along the way if it does. This company is a survivor among the mortgage REITs, having been in business over 18 years now.

Navios Maritime (NMM) - 18.56% yield, possibly the riskiest of this group. This dividend was recently cut in half. Navios is in a downturn due to oil being in a slump, as well as being stuck inside of a global recession that is affecting the overall business of shipping things. Still, the turnaround will eventually occur. In spite of the cut, the fact that the payment was still kept is a sign that things aren't in a tailspin.

Mattel (MAT) - Yield of 7.09%. This is one of the least risky investments you can get, in spite of the above average yield. They sell toys, and are about to go into their most profitable part of the year. The company struggled for a few years with supply problems, and some stagnation in their flagship brands, but appears to be well on it's way to recovering now. This is a good large cap company that will probably see an upside of 60-80% over the next year or two. Might as well get a nice dividend while you wait.