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The Highest Yield Left In The Market

Published Sat, 09 Mar 2019 08:38:07 -0500 on Seeking Alpha

If you're looking for income these days, your options are a little limited. The S&P 500 yields less than 2%, which is bordering on pitiful, and government bonds aren't much better.
REITs, as a sector, are reasonably high yielders at 3.9%. But in order to get the yields I like to see, you really have to cherry pick. You're not paying many bills with a 3.9% payout.
Corporate bonds? Meh. Investment grade bonds yield 4.4%, and "high-yield" junk bonds yield only slightly better at 5.2%. Sure, that's better than Treasury yields. But hardly worth the risk. At the first whiff of an economic slowdown, junk bond default rates tend to jump.
Preferred stock still sports a respectable yield, which is why I added exposure last month in my income service Peak Income, as do emerging market bonds for those with the stomach for the volatility.
But frankly, there's only one asset class right now that sports what I would consider to be a truly impressive yield, and that is oil and gas master limited partnerships (MLPs). The Alerian MLP index, which you can think of as "the S&P 500 of MLPs," yields over 8%.

I know of no other sector where those kinds of yields are possible without taking substantially more risk. (Business development companies, or BDCs, offer comparable or higher yields, but I consider them a little riskier at this stage of the business cycle).
Too Good to Be True? Call me a cynic, but when I see yields that high compared to virtually everything... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
FIDUCIARY/CLAYMORE MLP OPPORTUNITY FUND 8.91   0.0 0.00 0.00 14.36
TORTOISE MLP FUND 12.38   0.0 0.00 0.00 13.55
TORTOISE ENERGY INFRASTRUCTURE 20.77   0.0 0.00 2.62 12.48
NUVEEN ENERGY MLP TOTAL RETURN FUND 8.59   0.0 0.00 0.00 11.52
ENERGY INCOME AND GROWTH FUND 21.37   0.0 0.00 0.00 10.84
CUSHING MLP TOTAL RETURN FUND 10.20   18.6 0.55 0.00 10.84
FIRST TRUST MLP AND ENERGY INCOME FUND 11.38   36.7 0.31 0.00 10.50
CLEARBRIDGE ENERGY MLP OPPORTUNITY FUND 8.71   0.0 0.00 0.00 10.49
KAYNE ANDERSON ENERGY TOTAL RETURN FUND 9.89   0.0 0.00 0.00 10.17
KAYNE ANDERSON MLP INVESTMENT 14.71   0.0 0.00 0.00 9.76
SALIENT MIDSTREAM & MLP FUND 7.87   0.0 0.00 0.00 8.60
KAYNE ANDERSON MIDSTREAM/ENERGY FUND 10.86   0.0 0.00 0.00 8.23
JPMORGAN ALERIAN MLP INDEX ETN  

FIDUCIARY/CLAYMORE MLP OPPORTUNITY FUND - FMO
FIDUCIARY/CLAYMORE MLP OPPORTUNITY FUND - FMO  


Older articles featuring Fiduciary/claymore Mlp Opportunity Fund (FMO):
Examining Midstream C-Corp Dividends As Yields Rival Historical MLP Yields
2020 Vision: What's The Outlook For Midstream/MLP Dividends This Year?
Income Investing And The Changing Yield Curve
Closed-End Funds: 12 Funds In The 10%+ Yield Club At A Discount
Do Dividend-Paying Stocks Make Better Investments?
Closed-End Funds: 12 Funds In The 10%+ Yield Club At A Discount
You Were Warned: MLPs And 'I Bought It For The Dividend'
High Yield For Granny: The Savvy 'Widow & Orphans' Income Factory
High-Yielding And Well-Valued MLP Closed-End Funds, Part 2
High-Yielding And Well-Valued MLP Closed-End Funds, Part 1

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