CA - I'm Buying Real Assets With Up To 8% Yield
2024-04-23 07:00:00 ET
Summary
- Bitcoin's price has surged to $65K, but I remain skeptical of owning this virtual asset, opting instead to own high-yielding real assets.
- This includes traditional assets like real estate, energy, consumer staples, pharmaceuticals, and telecoms for reliable income streams.
- In this article, I present 2 quality picks trading at low valuations for their reliable income streams.
It's not hard to look for yield these days, and that's a great thing for income investors looking to build their cash flow. While it's tempting to get income from high-yield savings accounts. It's important to keep in mind the following considerations:
- How long will that yield last? Yields can change based on the Fed's interest rate policy and inflation. For example, Treasury I Bonds now yield just 5.3%, compared to over 7% a couple years ago.
- Reinvestment risk. When bank savings products such as CDs mature, there's no guarantee that the principal can be reinvested at a similar rate.
- Opportunity cost. Fixed income streams don't rise like dividends do, and investors risk missing out on capital gains and dividend increases should their allocation to fixed income be too high.