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Originally Posted by triflex
I'd love to know what companies are paying a high dividend that are not, in fact, just a poor business with little to offer but the dividend.
Banks pay almost nothing for your dollar deposit. Where is anyone supposed to get yield these days?
Maybe the dollar is close to worthless as it is because it pays nothing as a deposit. Seems to me just better off finding high quality equities. Berkshire Hathaway is the most stable amongst the high quality equities per Value Line.
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Funny, I used to work for Value Line and love the fact that they supply safety ranks. That said, individual stocks in a quantity less than 30 are simply to risky in price volatility and credit risk for you to put too much of your nest egg in. Please do not do that.
The answer to this dilemma may lie in Exchange Traded Funds (ETFs), mutual funds that trade like stocks but cheaper and more efficient. They hold a collection of securities that together will deliver much more safety through diversity. The no-brainer ETF to me right now is SCHP, it holds US Treasury Inflation-Protected Securities with a yield guaranteed to rise with inflation. Most brokers will try to talk you into something managed to hedge inflation (more costly and more risky). Don't fall for it. SCHP has a near-zero expense ratio and can be bought for zero through Schwab or Fidelity discount brokerages. Current yield on SCHP is 3.5%. If you are willing to take a bit more risk but far less than holding a single,high-yield utility or energy or transportation, stock, I have a few suggestions for you to check out on your discount brokerage platform. The best for you may be PCEF, an INVESCO ETF that holds 100 income-oriented closed-end funds (also funds that trade like stocks with technical differences). The internal expense ratio of this fund of funds and its market risk are considerably higher than SCHD. However, the bankruptcy risk is zero unlike that of individual stocks. PCEF has been around more than a decade. It pays MONTHLY, not quarterly dividends and it's current annual yield is more than 7.3%. PCEF has no equity market risk other than the price of the stock itself. which will go up or down relative to interest rates but will increase over time so don't sell it, just enjoy the yield. .Another more conventional ETF to buy and hold is SCHD which holds the highest dividend stocks in the S&P 500 and charges a neat-zero expense ration. Its current yield is 2% which is about 50% higher than the S&P 500. I hope this helps.