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

[crimsonghost747]

Honestly it's hard to find anything with yield. And it has been getting progressively more difficult during the past months.

-Some Canadian banks were at 5%+ a few months ago, not anymore.
-Telecoms? T is gone of course, so not sure if there are many options here? BCE from Canada still gives you 5.60%.
-Some MLPs look quite safe and offer around 7%. This might just be the best bet right now. Plenty of MLP ETFs for you 'muricans to choose from with some diversification and good yields.
-I'm also seeing some other energy transport (electricity, natural gas) in southern Europe where the yield is around 7 or 8%.

I'm not sure if yield will ever come back with this insane monetary policy. But right now I'm considering anything yielding over 5% to be a high-yielder. And I would love to add to those too but I'm just not seeing too many great opportunities.

[fenders53]

Oil and tobacco are about it for common stock yields much above 5%. A lot of those are there because the share price is still depressed from highs years ago.

It's subjective but I consider 6% a high yielder. Above 8% and you often end up giving some of it back in share price if you hold it very long.

[stockguru]

CLX almost a 5% yielder getting clobbered today down $20 in the pre-market. Really makes you think just how a lot these Covid like stocks best are behind them.

[Genester]

(08-02-2021, 05:32 PM)fenders53 Wrote: DNP is one I don't think is overvalued now.  Not only do you get the security of a preferred stock fund but it is a utility stock preferred fund.  You can buy this one and forget it.  If the share price goes more euphoric than a preferred warrants it probably needs sold, but you can just just ignore it and keep collecting your 6% yield if you wish.  Utilities are underperforming the past year so this one probably has a little upside in the share price at some point over the next year.

I'll offer up ENB as a safe high yielding stock.  It's at the top of the buy range though.  A lot safer at sub 37.  IMO it's very safe for the next few years.  I have no prediction for anything oil related 5 years from now.

BTI looks good here to.  I doubt the stock is gong anywhere but the very high yield is pretty safe.

Thank you, Fenders. Right there with you on BTI and ENB. For DNP and a few others you've recommended, do the high expense ratios scare you? I've been taught to avoid funds that are much over 1% on the expense side...

[EricL]

(08-03-2021, 07:40 AM)stockguru Wrote: CLX almost a 3% 5% yielder getting clobbered today down $20 in the pre-market. Really makes you think just how a lot these Covid like stocks best are behind them.

Fixed it for you. =)

[fenders53]

(08-03-2021, 08:25 AM)Genester Wrote:

(08-02-2021, 05:32 PM)fenders53 Wrote: DNP is one I don't think is overvalued now.  Not only do you get the security of a preferred stock fund but it is a utility stock preferred fund.  You can buy this one and forget it.  If the share price goes more euphoric than a preferred warrants it probably needs sold, but you can just just ignore it and keep collecting your 6% yield if you wish.  Utilities are underperforming the past year so this one probably has a little upside in the share price at some point over the next year.

I'll offer up ENB as a safe high yielding stock.  It's at the top of the buy range though.  A lot safer at sub 37.  IMO it's very safe for the next few years.  I have no prediction for anything oil related 5 years from now.

BTI looks good here to.  I doubt the stock is gong anywhere but the very high yield is pretty safe.

Thank you, Fenders. Right there with you on BTI and ENB. For DNP and a few others you've recommended, do the high expense ratios scare you? I've been taught to avoid funds that are much over 1% on the expense side...

I am with you there.  Most of my Vanguard funds are practically zero fees.  That matters in the long-term with compounding.  When I buy the high yielders I usually just count on holding a few years.  I look at what I believe will be the bottom line, assess risk vs reward and make a decision.  The reality is the high yielders are not a CD.  (Preferreds are about as close as it gets though).  As I mentioned I will take a break when they get euphoric because they get smacked when the market gets hit.  They are only truly safe if you buy them cheap.  You chase you lose more often than not.

I get a little wordy. I made 25-40% in under a year on pretty much everything I mentioned (other than common stocks of course). because I bought them when everyone was scared of them, so no the 1% fee didn't bother me. I have ridden RQI and ARCC up more than once the past 3 years.

[Genester]

(08-02-2021, 10:33 PM)ken-do-nim Wrote:

(08-02-2021, 06:26 PM)NilesMike Wrote:

(08-02-2021, 05:40 PM)ken-do-nim Wrote: ****

Edit: Bonus stock AGNC, with its 9.06% yield, which I sold last week, nets $20,254.19 so it's overall solid.

Every one of those has drawdowns of>35%, no thanks.

Right, these high yielders suit my needs at present.  The really safe capital preservation funds for when I'm retired I haven't researched yet, but I doubt they fall into the "high yield" bucket.  I interpret high yield as 7%+, others may think differently about it.  Other than endorse MO, I haven't seen any other recommendations, although in other threads I see a lot of forum members like BTI.

Is AGNC at a good price point now?

[Genester]

(08-03-2021, 01:11 AM)crimsonghost747 Wrote: Honestly it's hard to find anything with yield. And it has been getting progressively more difficult during the past months.

-Telecoms? T is gone of course, so not sure if there are many options here? BCE from Canada still gives you 5.60%.

Take a look at ORAN. Yes, it is French, yes, you have to mess with taxes. But, the dividend is solid and the company is very safe, IMO.

[fenders53]

(08-03-2021, 08:45 AM)Genester Wrote:

(08-02-2021, 10:33 PM)ken-do-nim Wrote:

(08-02-2021, 06:26 PM)NilesMike Wrote:

(08-02-2021, 05:40 PM)ken-do-nim Wrote: ****

Edit: Bonus stock AGNC, with its 9.06% yield, which I sold last week, nets $20,254.19 so it's overall solid.

Every one of those has drawdowns of>35%, no thanks.

Right, these high yielders suit my needs at present.  The really safe capital preservation funds for when I'm retired I haven't researched yet, but I doubt they fall into the "high yield" bucket.  I interpret high yield as 7%+, others may think differently about it.  Other than endorse MO, I haven't seen any other recommendations, although in other threads I see a lot of forum members like BTI.

Is AGNC at a good price point now?

If you like yield traps it is.  Take a look at a 10 or 20 year chart. It's a picture of a shareholder paying their own dividend since forever.  If you have a $100 bill in your right pocket just put it in your other pocket and get a 100% yield today.

[crimsonghost747]

(08-03-2021, 08:56 AM)Genester Wrote:

(08-03-2021, 01:11 AM)crimsonghost747 Wrote: Honestly it's hard to find anything with yield. And it has been getting progressively more difficult during the past months.

-Telecoms? T is gone of course, so not sure if there are many options here? BCE from Canada still gives you 5.60%.

Take a look at ORAN. Yes, it is French, yes, you have to mess with taxes. But, the dividend is solid and the company is very safe, IMO.

Interesting pick. The dividend fluctuates a bit but looks to be high and pretty well covered most of the time. And a pro-tip for the taxes, since it only pays it's dividend semi-annually you can probably just sell right before the ex-date and buy it back the next day cheaper, so you skip the dodgy french withholding taxes. 

Personally I want to see a bit more growth. I just dropped BCE today because lets face it, it hasn't gone anywhere in years and the dividend increases are way too small. Telecoms feel like a very dangerous business with record prices in all those frequency auctions coupled with cheaper and cheaper connections for the customers.

[Genester]

[quote pid='27735' dateline='1628000318']


Personally I want to see a bit more growth. I just dropped BCE today because lets face it, it hasn't gone anywhere in years and the dividend increases are way too small. Telecoms feel like a very dangerous business with record prices in all those frequency auctions coupled with cheaper and cheaper connections for the customers.
[/quote]

Yes, ORAN definitely not a growth stock :-) But, it doesn't feel overpriced and they have a monopoly in several countries.

Thanks for the pro tip - love it!

[ken-do-nim]

(08-03-2021, 08:59 AM)fenders53 Wrote:

(08-03-2021, 08:45 AM)Genester Wrote:

(08-02-2021, 10:33 PM)ken-do-nim Wrote:

(08-02-2021, 06:26 PM)NilesMike Wrote:

(08-02-2021, 05:40 PM)ken-do-nim Wrote: ****

Edit: Bonus stock AGNC, with its 9.06% yield, which I sold last week, nets $20,254.19 so it's overall solid.

Every one of those has drawdowns of>35%, no thanks.

Right, these high yielders suit my needs at present.  The really safe capital preservation funds for when I'm retired I haven't researched yet, but I doubt they fall into the "high yield" bucket.  I interpret high yield as 7%+, others may think differently about it.  Other than endorse MO, I haven't seen any other recommendations, although in other threads I see a lot of forum members like BTI.

Is AGNC at a good price point now?

If you like yield traps it is.  Take a look at a 10 or 20 year chart. It's a picture of a shareholder paying their own dividend since forever.  If you have a $100 bill in your right pocket just put it in your other pocket and get a 100% yield today.

Too funny!
But anyway, I'm not personally going back to that one.  I'm much happier with HTGC, MO, HRZN, RA, ARCC, and the two pimco funds.  OXLC is currently on a great run (+62% in the past year), but at the first sign of a price drop I will be out.