5 Stocks With Double-Digit Yields
You could turn to the corporate bonds offered up by blue chip stocks. They're quite safe, and typically offer yields in the 3% to 6% range. But for some investors, that's not enough, especially when you can find investments that yield 10% or more.
Of course, such a high-yielding investment should raise your eyebrows. If it were a risk-free rock-solid yield, then many investors would have already bought them, which would effectively push down the yield back into the single digits.
Still, you need not avoid the group of ultra high-yielders completely. Some of these high-yielders have built up a decent track record, and though they made need to eventually reduce their payouts, the yields could still remain quite respectable.
Here are five double-digit yielders for you to consider.
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Two Harbors: 15.6% yield
Real estate investment trust Two Harbors(TWO) trades residential mortgage-backed securities, which are bundles of both prime and subprime loans. To help deliver high yields, the company uses borrowed funds to magnify returns on equity.
Since most of the income is paid out in the form of dividends, this stock doesn't move very much: It has traded between $8.50 and $10.50 for the past two years. Yet investors in this stock mainly care about the yield, which is currently 15%.