How High-Yield, Dividend-Paying Investments Can Turbocharge Your Income

Mike Larson

Over the last 10 years, global central banks have waged war on your income portfolio. They’ve slashed benchmark interest rates more than 667 times, and driven yields even lower with more than $12 trillion in QE worldwide.

We’ve seen a trio of Federal Reserve hikes more recently, and we’re likely to get another one on Wednesday when the latest policy meeting wraps up. But even if the Fed pulls the trigger, we’re still talking about a benchmark rate range of only 1%-to-1.25%.

The result of this low-rate regime? A wasteland of low yields for income-seeking investors …

Bank savings accounts yield an average of only 0.73%, according to the most recent update from Bankrate.com.

One-year Certificates of Deposit yield only 1.36%.

Money market mutual funds yield just 0.46%, according to iMoneyNet.

Even the SPDR S&P 500 ETF (SPY, Rated “B”) yields just 1.87%.

You can’t live off that. I can’t live off that. No one in their right mind can live off that!

What you need is more income. Higher-yielding investments that offer market-beating (and reliable) dividend payments. That’s the way to build long-term, lasting wealth, according to several reliable studies.

Consider: The long-term, annualized, average gain for stocks is around 7.9%. But roughly 5 percentage points of that return historically stems from dividends. Another 0.8 percentage points comes from real growth in dividends.

Strip all that out, and you’re left with only the returns generated by inflation and rising valuations – around 2.1%. So by focusing on dividend-paying stocks with relatively high, yet reliable yields, you could’ve boosted your annual returns by almost 3.8 times.

Here’s another example of the power of high-yield investing. Let’s say you invested $1 million in the 20% of stocks paying the highest dividends in 1928. Now in case your history is a bit rusty, that’s just BEFORE the devastating stock market crash of 1929 – the one that had stock brokers jumping out of windows in New York City.

Even taking into account the impact of the crash, and if you stuck with that strategy all the way through year-end 2016, you’d have a whopping $9.1 billion to show for it! By focusing on a group of stocks that are even more firmly entrenched in the “sweep spot” of dividend-payers, you could have amassed even more wealth — $17.6 billion (Few investors know that quirk of history, by the way, and even fewer take advantage of that knowledge).

I’m bringing all of this up because I’m about to release the inaugural issue of my blockbuster new letter, High-Yield Investing. It’s slated to go online Wednesday, June 14 at Noon Eastern Time. In that issue, I’ll pull back the curtain and reveal my five favorite ways to turbocharge your income portfolio right now.

These five picks are the “best of the best” – stocks and ETFs that passed my rigorous, multi-step screening process designed to identify the highest-rated, highest-yielding BUY candidates.

Not only that, but these recommendations also had to demonstrate lasting dividend growth and dividend sustainability. And they needed to show powerful momentum and reduced risk of volatility.

I’d love for you to be among the first on board with these recommendations. So click here to get started. Then keep your eyes peeled – because I am going to keep banging this higher-yield investing drum as long as I can to make sure you get the income you deserve!

Until next time,

Mike

Mike Larson, Senior Analyst

ETF Spotlight Edition, by Mike Larson, Senior Analyst

Mike Larson is a Senior Analyst for Weiss Ratings. A graduate of Boston University, Mike Larson formerly worked at Bankrate.com and Bloomberg News, and is regularly featured on CNBC, CNN, Fox Business News and Bloomberg Television as well as many national radio programs. Due to the astonishing accuracy of his forecasts and warnings, Mike Larson is often quoted by the Washington Post, Chicago Tribune, As-sociated Press, Reuters, CNNMoney and many others.

About the Income & Dividend Analyst

In an era of high-risk exuberance, Mike Larson stands out as a leader in conservative investment strategies that outperform the market overall. Using the safety-oriented Weiss Ratings as a guide, he has a proven history of guiding investors to stocks and ETFs that provide asset protection, consistent dividends and excellent growth.

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