EC Big Yield Investments Worth Considering

Artificially low interest rates by central banks around the world continue to make it challenging to find attractive yield. With that in mind, we have provided analysis (and reports) and big yield investments that we believe are worth considering. The list includes common stocks, preferred stocks, REITs, MLPs and BDCs, and we’ve broken it down into two groups: (1) Big yield investments with low volatility, and (2) Big yield investments with higher volatility and higher price appreciation potential.

Big Yield Investments with Low Volatility:

AmeriGas (8.2%, MLP)
AmeriGas Partners (APU) is a master limited partnership that offers a big, safe, 8.2% yield. It has a low beta, low volatility, and exceptionally high returns on its invested capital. It is currently trading an attractive price. And even though AmeriGas operates in an industry (propane sales) with downward long-term price pressure, its big distribution payments are still very safe for many years to come, especially relative to other big yield opportunities. AmeriGas is a standout “widows and orphans” investment. You can read our full AmeriGas report here.

Main Street Capital (6.6%, BDC)
Main Street Capital (MAIN) is a business development company with an attractive 6.6% dividend yield. And if you factor in the company’s periodic supplemental dividend payments then the dividend yield jumps to nearly 9%. Main Street’s business is focused on providing debt and equity financing to smaller mid-sized companies. In additional to its big dividend payments, we believe Main Street is an extremely attractive option for long-term investors because of its strong internal management team, diversified risk exposures, and low volatility. You can read our full Main Street Capital report here.

Liberty Property Trust (5.0%, REIT) 
Liberty Property Trust (LPT) is a big dividend REIT (5.3% yield) that has already climbed over 30% since we first highlighted it earlier this year. However, we believe it still has significantly more upside potential ahead, and it offers very low volatility. Liberty is greatly underappreciated by the market because it cut its dividend back during the financial crisis (and hasn’t increased it since then), and because it is in the middle of a multi-year transition to change its focus to industrial properties (and out of suburban office properties). We believe the transition is wise, LPT still offers more upside than many of its peers, and the company may resume dividend increases within the next year. You can read our full Liberty Property Trust write-up here.

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Disclosure: None.

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