Want $1,000 in Super Safe Annual Dividend Income? Invest $9,950 Into the Following 3 Ultra-High-Yield Stocks
Nasdaq Few investment strategies swing the pendulum in investors' favor quite like buying dividend stocks.
Approximately 10 years ago, a report from the wealth management division of money-center bank JPMorgan Chase demonstrated the power of putting your money to work in time-tested income stocks. When examined over a 40-year period, the publicly traded companies that initiated and grew their payouts delivered a hearty annualized return of 9.5%. Comparatively, the non-payers trudged their way to an annualized gain of just 1.6%. Over the long run, dividend stocks usually mop the floor with companies that don't offer a payout.
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The "catch" for income-seeking investors is that ultra-high-yield stocks -- those with yields of 7% or above -- can sometimes be more trouble than they're worth. Statistically speaking, risk and yield tend to go hand in hand once high-yield status (4% and above) is reached. While this doesn't mean ultra-high-yield stocks are off-limits, it does imply that some extra vetting needs to be done by investors.