"Safe" high yielders - stocks, ETFs, CEFs, REITs, MLPs, etc - post your favorites!

[crimsonghost747]

I wouldn't touch an mREIT in these market conditions. As long as the housing sector stays healthy they can be ok. But they are very risky in general and quite frankly I smell bad times coming to the housing market sooner or later. The recent increases in price of housing are not healthy. Now the average mortgage might be somewhere around 1.5% or 2%, and these guys are pulling in enough to pay their owners 9% after covering the operating expenses. That tells you how much risk and leverage they have.

mREITs are great cash generators as long as everything goes smooth but they get rapidly wiped out when things go sour.

[fenders53]

(08-05-2021, 04:58 AM)ken-do-nim Wrote: This article recommends NREF, a REIT paying 9.18% I hadn't heard of before, and ARCC.

ARCC is a blue chip yield trap.     I do like it but pull up a 20 yr chart.  Back above it's 2004 price.  Not saying it couldn't have a little more upside but it's starting to push it.  It's always on my watch list because buying it around 15 has been easy money.

[Genester]

(08-04-2021, 05:23 PM)ken-do-nim Wrote: I strongly recommend looking at HTGC instead.

https://www.nasdaq.com/market-activity/s...nd-history

The dividend had increased to $.40 right before COVID, dropped to $.32 immediately after, and they've been building it back up since.  Now back up to $.39.

And unlike the others, a look at their max price chart shows choppy, but not a downward trend like AGNC and NLY.  Overall up 26% the past 5 years.

Thank you for the idea - HTGC seems to be at an all time high now, so probably not the right time to dive in?

[fenders53]

(08-06-2021, 09:15 AM)Genester Wrote:

(08-04-2021, 05:23 PM)ken-do-nim Wrote: I strongly recommend looking at HTGC instead.

https://www.nasdaq.com/market-activity/s...nd-history

The dividend had increased to $.40 right before COVID, dropped to $.32 immediately after, and they've been building it back up since.  Now back up to $.39.

And unlike the others, a look at their max price chart shows choppy, but not a downward trend like AGNC and NLY.  Overall up 26% the past 5 years.

Thank you for the idea - HTGC seems to be at an all time high now, so probably not the right time to dive in?

I'd get in on the ground floor while there is still time. 

[ken-do-nim]

(08-06-2021, 09:15 AM)Genester Wrote:

(08-04-2021, 05:23 PM)ken-do-nim Wrote: I strongly recommend looking at HTGC instead.

https://www.nasdaq.com/market-activity/s...nd-history

The dividend had increased to $.40 right before COVID, dropped to $.32 immediately after, and they've been building it back up since.  Now back up to $.39.

And unlike the others, a look at their max price chart shows choppy, but not a downward trend like AGNC and NLY.  Overall up 26% the past 5 years.

Thank you for the idea - HTGC seems to be at an all time high now, so probably not the right time to dive in?

I think that, after the COVID dip, they've continued on the general up-trending pace they've been on since late 2018.



You could always get your feet wet with a starter position*, and then dollar cost average in over time if you like how it's trending.


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* You'll see terms on the forum like "starter position", "small position", "full position".  They mean different dollar amounts to everyone.  It's relative to how big the other positions in your portfolio are.  For instance you could say a starter position is $1000, a small position is $2500, and a full position is $5000.  But for someone much closer to retirement, those may be 10x those figures.

[fenders53]

HTGC chart looks excellent. Not a chance I am buying any but it definitely looks like it has legs until whatever day the market gets rocked.

Just looked at T for the first time in awhile. That is a yield trap chart. I've been fighting the temptation to sell puts for awhile now. There will be a bottom for any version of a short-term bullish trade but it's not this week.

[crimsonghost747]

Technically T isn't a yield trap since there won't be much yield left after the spin-off.

[fenders53]

(08-06-2021, 12:08 PM)crimsonghost747 Wrote: Technically T isn't a yield trap since there won't be much yield left after the spin-off.

Oh but you stand corrected.  The current yield will be just fine if the shares keep melting,

[ken-do-nim]

I'm actually considering getting back into T. I'd like to get shares of the spunoff HBOMax company, and until that happens the yield is still nice.

[fenders53]

(08-06-2021, 01:15 PM)ken-do-nim Wrote: I'm actually considering getting back into T.  I'd like to get shares of the spunoff HBOMax company, and until that happens the yield is still nice.

Hold that thought for just a little while.  Get in before it finds a bottom you give the whole yield back in a month or two.  The chance of T launching higher short term is about zero.

[Genester]

(08-06-2021, 12:08 PM)crimsonghost747 Wrote: Technically T isn't a yield trap since there won't be much yield left after the spin-off.

 T will still yield 4%+...

[fenders53]

That is likely why the stock is dropping.