10%+ yields

[97guns]

Over the Christmas holidays my brother mentioned that he was into some high yielding stock that he making 13% on with dividend payouts every month, i assumed they were REIT and kinda shrugged it off because I'm not into paper assets but now I'm thinking of moving some non income producing funds to some high yielding stuff to produce income.

My quick glance at finding 10% led me to a lot of REIT and some mutual funds

What else is out there? I will be able to talk more with my brother next weekend but want to hear the boards views on these high yielding plays, from what little I've been reading, REIT investing is relatively safe

[Singuy]

I have seen ship container companies giving out stupid high dividends. Not sure if dividend chasing is safe or not. Let me know what REITs are spitting out such high dividends and I'll probably go for some. I wonder if their dividends will be taxed at capital gains or ordinary income. I think the biggest problem with Reits is that the value is bound to drop once interest rate is raised..and unless something crazy happens, there's no where for interest to go but up.

[kork13]

Duplicate post

[kork13]

II wonder if their dividends will be taxed at capital gains or ordinary income. I think the biggest problem with Reits is that the value is bound to drop once interest rate is raised..and unless something crazy happens, there's no where for interest to go but up.

On the first point (taxes), I believe that it depends on how the REIT is structured and what assets it holds. Namely, rents from properties held under/through the REIT (equity REIT), vs. interest payments from mortgage notes held by a REIT (mortgage REIT). However, I think both do throw off predominantly short term capital gains.

The second point (interest rates) also depends somewhat on the type of REIT it is. The former would be affected tangentially by inflation & interest rates affecting rental markets, whereas the latter is directly impacted, since they back mortgage notes directly.

[TexasHusker]

A biggie with REITs is measuring the strength of the dividend. How many consecutive quarters have the issued one, and what was the yield ?

[sv2007]

Lots of stocks easily give 10%+ ROI these days; overall market is doing very well. There's really nothing too much difference between the return being share price gain vs dividends; in fact, I'd say higher share value is better for most people.

[james.hendrickson]

Some of the bulk shippers can throw off 10% dividends. Canadian energy royalty trusts used to be well known for this.

[amarowsky]

Closed ended funds (CEFs) pay pretty high monthly dividends. I have owned (4) different CEFs from Calamos. CHI, CHW, CGO, and CHY, they all pay between 11-13% in dividends, earnings, and return of capitol in the form of a monthly dividend.

On paper they look risky, but I have had them for over 2 years and never missed a payment and more of less maintained roughly the same value. Currently I have them paying me about $300 a month that I'm now not re-investing and using to pay off debt on cars/mortgage faster.

Actually I heard about them originally on this site about 6 years ago, and didn't buy in to them until much later.... Kinda wish I would have gotten in earlier, I would have doubled my money by now (roughly).

[amarowsky]

Aberdeen is also a CEF I own, it also pays about the same as Calamos funds.

[97guns]

My brother just got in for the weekend and we briefly spoke about his dividend holdings, surprisingly only a couple reits and some stuff paying out 18-20%, here is a list of his core holdings

CLM & CRF - both a division of cornerstone and paying 18-20%
GOF - 11%
NCV - 17%
TICC - 17%
AGNC - REIT 12%
NYMT - REIT 14%
WMC - REIT 12%