Bearcatbob (who wants cash dividends at 7%): If you try SI sites where there are other people who are interested in dividends you might come across Business Development Companies, many of which have consistently paid dividends in excess of 7%. Or you might find other companies where the dividend yields are now less than 7% but where the dividends have been raised consistently every year for many, many years--- so that the stock bought now might be yielding 7% in a few years on the original purchase.
I've been a fan of these BDC companies. You can buy a package of them and get some diversity (thus business risk reduction with any one going kaput). Some people have concerns relating to the structure and financing activities of these BDCs, but so far, they seem to me (but I'm no expert) to be to be worth looking at. (ALD, for example, among the oldest, has been chugging along for decades.) Also another aspect: Since by law these companies do not pay fed. income taxes, but instead must pay out earnings to investors, the dividends are not qualified (for the 15% tax rate), so the stocks might be more suitable for inclusion in IRAs.
The good times for these companies might have been in the past, there may be too many competing entities now in the sector, or other problems. I'm in though on the assumption that within a diversified portfolio there's room for a package of these companies. Also for me, I like that these stocks are relatively stable and so tend to tone down the volatility I see in my portfolios with sharp&large rises and falls of other sectors, such as oil/gas (which of course on an average day, mostly move up or down together).
All jmo, and I have been wrong many, many times. |
