At a time money market accounts, CDs, Treasuries, and annuities fail to provide a decent return, investors looking for alternatives should consider high yielding dividend stocks and preferred stock.
Before investing, be aware that James Mound from MoundReport.com strongly believes the stock market is going to take a major plunge in the next two weeks. A chart of the S&P 500 confirms the market is bumping up against resistance. With that in mind, consider taking profits and protecting yourself.
Wait for a correction before investing in any of the following stocks/ETFs.
High Yielding Issues
Ares Capital (ARCC) – Yields a fat 9.30% annual dividend. Not only that the has outperformed the S&P 500 by more than 20% in the last two years. Ares Capital is a New York based BDC (business development company) which invests in private equity firms. Here is a chart of ARCC's stock over the last five years:
BlackRock Kelso Capital Corporation (BKCC) – Yields an even plumper 11.30% annual dividend. BKCC is also a business development company. Here is a 3 year chart:
If you buy these stocks on a dip, you will have a good chance of a positive ROI considering the stock will have to drop more than it’s annual dividend yield in order for you to talk a loss.
Please do your own diligence before investing, these investments are not FDIC insured and you may lose your principal. Here are a couple of useful sites for further research:
