The Safest High Yield Investments For The Rest Of 2015

Tue, Jun 11, 2013

High Yield Safe Investments

There are very few options left for investors looking for high-yield investments.

high yield safe investmentsThe market rebound has swept across all asset classes. Prices are up and yields are down.

The S&P 500 yields just over 2% in dividends.

High-yield certificates of deposit (CDs) yield less than 2%.

The yield on the 10-year U.S. Treasury bond has risen sharply in the past month. It still pays a mere 2.14%. And with a rate that low, they carries far more risk and little potential reward.

Even high quality real estate investment trusts (REITs), which are traditionally a great high-yield investment, yield as little as 5% right now.

There just aren’t many options for investors looking high-yield investments for the rest of 2015. And safe high-yield investments are nearly impossible to find. But there is one option which offers less risk and higher yield than most any other investment right now.

The Best Kept Secret in Safe High-Yield Investments

One of our long-time favorites in the high-yield sector are in a small sector of the market that most investors don’t even know about.

Simply put, if you’re looking for yield, the place to be is in high-yield closed end funds (CEFs).

The advantages of CEFs over other investments are many. They offer instant diversification. Many of them have low fees. They also allow investors to invest in some great investments like convertible bonds.

The main advantage for High Yield Investors though is, well, a safe high yield. CEFs often offer high distribution rate including dividends and return of capital. They also often trade at a discount to their net asset value (NAV). And if bought when they are trading at a 10% discount, it’s like paying 90 cents on the dollar.

safest high yield investments 2015

Here are three of the Safest High-Yield Investments For The Rest Of 2015.

Top Three  Safe High-Yield Investments for 2015

Calamos Global Dynamic Income (NYSE:CHW) – is managed by Calamos Asset Management, one of the leading convertible and high-yield bond investment managers in the world.

The high-yield CEF invests in a number of bonds and stocks. Bands make up 31% of its portfolio and stocks 52%. Its top stock holdings include Apple, Nestle, Samsung, and other large, growing, and consistent dividend-paying stocks.

The fund currently trades at a discount to NAV of 9%. So that provides a high margin of safety against a market downturn.

It also pays out an annual distribution rate of 8.50%. And it pays it all in monthly installments.

Credit Suisse High Yield Bond (NYSE:DHY) – is a high-yield bond CEF.

The average premium over the NAV over the last year has been 6.18%. The premium has now fallen 1.27%, less than two percent away from its lows.

It currently pays a monthly distribution of 2.65 cents for an annual distribution rate of more than 10%.

BlackRock Corp High Yield VI (NYSE:HYT) – is another high-yield investment fund which offers a particularly high level of safety to investors.

It invests primarily in high-yield debt. Some of its top holdings include debt from Ally Financial and Icahn Enterprises – both of which have a 7% coupon rate.

The fund currently pays a distribution rate of 8.54%. It also trades at a discount to its NAV of 2%.

You Don’t Have to Take High Risks to Earn High Income

Again, there aren’t many safe high-yield investments available right now.

When the next correction comes, there will be plenty of opportunities to buy high-yield investments at better prices.

Rest assured, a correction will come. There’s always a correction. Or worse.

That will be the opportunity to really load up on high-yield investments with even more safety. Until then there aren’t many, but CEFs offer an extra degree of safety for investors looking for high yield right now. – Get More Information On High Yield Investment

Join Now

The Group of Big Investors in United States.

Your Email

Like This?

Share This:

Facebook Twitter Share on Google+ Digg Reddit LinkedIn Pinterest StumbleUpon

Recent Post

How to Buy Commodity Stocks Online 2015 - Learn here it’s Safe to Investment in Commodity Market

The how to invest in commodities stock 2015 can correct any fluctuations that investors may have felt recently in their fortunes. The beginning of the year was on a shaky note with the direction of profits not very clear. However, with the months wearing on, the commodities market is once..... Read More...

Is Gold and Silver a Good Investment in 2015? Gold Coins Investment Best Idea for a Great Return

The is investing in gold a good idea right now is the hot conversation for small and big time investors alike. With the crash in real estate markets and the continued disfavor of bonds, gold is the only option which is fast emerging as the fail safe investment. Moreover, gold..... Read More...

Top 10 Best Stocks To Invest In Right Now in 2015, Learn Here How to Buy Stock Now

The top ten best stocks to invest in 2015 can help investors consolidate gains this year with a great margin. These are the stocks one’s would prefer to buy and hold onto for a long time. There are more winners here than losers which sped way past the rest..... Read More...

Best Investment Strategy for High Income Earners, Learn Here Investment Strategies for Buying Stocks

The investment strategies for high income earners are a few of the best special financial tips to help in wealth management. The top 2-3 per cent of the high income earners has a challenging task in holding onto their money and investment may be the only way out to avoid..... Read More...

How to Make Money in the Stock Market with Little Money for beginners, Future Wealth

The how to make money in the stock market with little money is a sure fire way to get out a less than perfect existence. It is a means other catapult in to luxury almost overnight as has been shown by many an investor in all times. Investing in the..... Read More...