Tuesday, February 07, 2012

 
 
 

 
 
 
 
 
Why everything you know about income investing is wrong...
Advertisement
Thursday, April 16, 2009
Text Size: increase text size decrease text size

By Dan Ferris in DailyWealth:

Not one investor in a hundred realizes this, but now is a once-in-a-lifetime opportunity for income investors.

Most people will never recognize this opportunity because they don't know what a truly great income investment is. Most income seekers like to buy things like commercial real estate stocks (REITs) to collect rents.

REITs have a big problem: They're required by law to pay out 90% of their distributable earnings. So if they want to grow, they have no choice but to take on debt or dilute your interest by selling more shares. That's why so many REIT dividends have been cut over the past two years. Banks are in horrible shape and getting worse all the time, so it's only going to get worse for businesses like REITs that depend on a lot of debt financing.

Read full article...

Also for income investors:

Inflation fighters with safe and large dividend yields

One of the world's best income investments now yields a safe 10%

Income alert: A safe strategy that will yield over 15% this year

Topics: Dan Ferris | Income Investing
Facebook RSS Feed

 
©2012 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This website may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202.