It is an exciting time to be an income-focused investor. Business results are improving, yet share prices have not recovered from the February-March crash. The lack of share price recovery allows us to pick up shares of solid income stocks at excellent yields. Who wouldn’t like earning 9%, 11%, or even 15% from an investment where the dividend looks secure, and there is tremendous potential for share price appreciation?
For fun, here are five that I find interesting:
Credit Suisse Gold Shares Covered Call ETN (GLDI)
GAMCO Global Gold, Natural Resources & Income Trust (GGN)
I’m lumping together the first two investments: GAMCO Global Gold, Natural Resources & Income Trust (GGN) and the Credit Suisse Gold Shares Covered Call ETN (GLDI).
The two funds take different strategies to provide high-yield exposure to gold and natural resources.
These days I am somewhat of a gold bug. The massive dumping of stimulus cash into the global economy could lead to currency devaluation, which is very good for the price of gold.
GGN has a current yield of 10.3%, and GLDI yields 12.7%.
Lumen Technologies (LUMN)
I thought I was was not familiar with Lumen Technologies (LUMN) and its 10% dividend yield; however, with some digging, I discovered that Lumen is actually a rebrand of CenturyLink.
The recent history of CenturyLink has been extremely troubled.
The dividend was cut by 54% in March 2019, well before we had heard about the coronavirus.
I suggest not being taken in by the new fancy name.
I often refer to the closed-end fund universe as a junkyard. As with any junkyard, you can sometimes find something valuable if you shift through the junk.
John Hancock Tax-Advantaged Dividend Income Fund (HTD)
The John Hancock Tax-Advantaged Dividend Income Fund (HTD) may be such a nugget.
The fund invests in utility common shares and preferred stock shares.
I suggest further research to determine the level of tax advantage that applies to your particular situation.
The Invesco Dynamic Energy Exploration & Production ETF (PXE) offers a very contrarian play for future energy production.
The fund owns a portfolio of oil drillers and refiners. Both ends of the carbon-based energy spectrum are significantly out of favor.
PXE currently yields 6.5%.
Want More Great Investing Ideas?
GLDI shares . Year-to-date, GLDI has gained 10.25%, versus a 11.58% rise in the benchmark S&P 500 index during the same period.
About the Author: Tim Plaehn
Tim is the lead income and dividend investing analyst at Investors Alley. He is the editor for The Dividend Hunter, a popular investment research advisory focusing on high-yield dividend stocks for investors who want a steady and growing income. Prior to joining Investors Alley Tim was a stock broker, financial planner, and F-16 fighter pilot and instructor in the U.S. Air Force. More...
More Resources for the Stocks in this Article
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|HTD||Get Rating||Get Rating||Get Rating|
|PXE||Get Rating||Get Rating||Get Rating|