Finding High Yield in Unlikely Places
The last few years have not been kind to income-orientated investors. The Federal Reserve has instituted a series of initiatives to keep rates extraordinary low. This has punished income investors who traditionally invested in ultra-safe investments such as CDs. In addition, the traditional dividend paying sectors, such as pharmaceuticals, telecoms and utilities, are also problematic.
Pharma has challenges with patent expirations, litigation, slow growth and governments focusing on squeezing costs out of their prescription drug budgets. Telecom is plagued with high fixed costs, slowing cash flow generation, unionization and government regulation. Utilities are bothered by anemic growth, stretched valuation, stricter emission regulations and concerns around coal and nuclear power generation. An income investor must venture into areas they might not have previously considered....337 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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