Investors are always looking for the best new investment opportunities. However, there are different types of investments that you may be interested in. Some investors have a higher risk tolerance than others. Those with a higher risk tolerance can benefit from some risky high yield investments that less risk tolerant investors do not have access to. If you are a bit less risk averse than your investing peers, find out the best high yield investments of the moment so you can earn big money as soon as possible.
Business Development Companies
Business Development Companies, or BDCs for short, provide an excellent high yield investment opportunity to risk tolerant investors. While investing in one or two BDCs individually may not be a wise idea, you can opt to invest in a fund that spans over a dozen different BDCs. One such fund is the UBS ETRACS BDC ETF (BDCS). This is one Business Development Company ETF that has provided investors a double digit total return. If you want to get in on investments with high ROI, consider this ETF or another BDC fund from Visium Asset Management or elsewhere.
Utilities usually offer returns of around 4%. Edison International (EIX), in particular, provides a great opportunity for investors looking for a steady stream of profits. While rooftop generated solar power may cut into the profits in this sector, recent changes in public office within the United States may hamper this risk. (EIX) yields 3.2% in recent years. This is certainly a worthwhile consideration if you are looking for high yield investments that do not require a ton of specialized expertise to figure out.
Mortgage Security REITs
Real Estate Investment Trusts, or REITs, are tax-favored entities, making them a desirable investment. REITs in the area of mortgage securities are one opportunity, in particular, that could provide double digit dividend yields to investors like you. Potential profits can decline over the years if interest rates change. However, this is a lucrative investment opportunity for short-term gains, just like proprietary trading. This is perfect for the high risk investor like yourself.
Municipal bonds have been returning 2-4% in recent years. This is not nearly as impressive as some other options on this list. However, this is still a considerable profit that you can count on. Municipal bonds are one of the few safe high-yield investments available to investors. You can choose to invest in individual bonds. Or, you can look for municipal bond mutual funds to consider. Regardless of which you choose, you should take advantage of one of the safest high yield investments out there.
Dividend Paying Stocks
Stocks that pay dividends may not be the highest yield opportunities. However, they provide a useful source of steady income, which may be worth more to some investors. These stocks also provide you the opportunity to pull your money out should the stock start performing poorly. Investors can elect to search for stocks with a history of steadily rising dividends. Or, you can elect to invest in a dividend income fund. Consider your options before you decide which dividend paying investments are right for you.
If you are an investor, you are surely always looking for the next best investment opportunities. After all, that is how you found out about Calvert. However, the most high yield investments are going to be pretty risky investments. This is not a problem for risk tolerant investors like yourself. You can earn a huge return on investment, just as long as you can separate your emotions from the market. Consider these high yield investment options listed above to earn a high yield with little work in the very near future.
Photo from http://starakamienica.pl/?hpv=bluebay-high-yield-investments