Ultimate Guide To Building A High-Yield Dividend Portfolio

High-yield investments are "in" more than ever before. Why? Partially it's because dividend investing is a proven method to generate good returns but also because in this era of very low interest rates, the traditional retirement investment doesn't work so well. If you were planning on investing in stocks over your working years and eventually moving to a fixed income portfolio only in order to live off of it, I've got some bad news. You'll need millions in order to survive off of 1% interest rates.

So yes, dividend stocks are very popular not only by individuals but also by pension funds, institutional investors, etc. The problem is that typical blue chip dividend stocks pay a very low dividend yield making it a challenge for most to generate significant income. So several investors have moved towards a higher-yield portfolio. The main challenge of course is having limited risk in such a portfolio. There is a reason why some stocks offer higher dividend yields. I've mentioned FTR on this portfolio and I can tell you that even with a 10% or so dividend yield, it would never make my portfolio.

Source: Seeking Alpha

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