Alternative Income Cheapies

Before moving on to fresh topics and kicking over rocks in the corners of the market, I want to address one more market segment where I have found a few stocks to buy. The alternative-income, high-yield stocks have long been a favorite of mine. I have found that a collection of higher-yielding, traditional real estate investment trusts, mortgage-backed REITs, commercial real estate finance companies and business development companies have delivered outstanding long-term returns. The caveat is that I would move even slower and stay smaller than usual with these securities.

The alternative-income stocks usually provide plenty of bumps and bounces that allow me to add to my positions at lower prices. There will be stock offerings that depress the price and dividend cuts and changes that move the stock prices around quite a bit. As I wrote in a recent piece on income investing, the idea here is not to have a concentrated portfolio but to buy a lot of them and add a little when they are cheaper. It is also important only to buy these when they trade below net asset value....526 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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