High Yield Investment Options

Any savvy investor would jump at the chance for a high yield and low risk investment.  In today’s low interest and high risk environment, these opportunities are extremely difficult to come by.  Be certain to clearly define some goals before getting started.  Determine if your goal is to focus on short or long term investment goals.

With some diligent research, your portfolio can outperform the S&P over time.  Set some goals, establish some disciplines, and start investing.

• Examine stocks that pay out dividends.  When performing research to select these types of companies, you will want to examine the track record of the company.  Financially stable companies that pay dividends will show a history of making these payouts.  The earnings per share should be able to adequately cover the planned dividend payout.  In order to calculate the stock’s investment yield, divide the annual dividend payout by the per share price.  As the price per share drops, the yield increases.  Compare the yield to other investment options to determine the highest yield for your money.


• Examine inverse index funds.  Even in a downward economy, it is still possible to make solid investments.  Inverse index funds increase in value as the index drops in value.  These investments can be risky, and often need to be properly timed in order to realize the proper effect.  If you are considering this option, be certain that you thoroughly research market conditions, and that you set limit orders to lock in profits.


• Examine mutual funds.  There are literally thousands of mutual funds that have historically high yields over time.  Though the history of the fund does not guarantee future performance, many mutual funds are fun by fund managers.  The history of the fund’s performance is like a report card for that manager.  A good fund manager can beat the S&P 500 average over time.  Look at funds where the manager has been working in the industry for a lengthy period of time.