2024-07-08 10:00:00 ET
Summary
- Reaching for higher yield doesn't always have to mean taking on too much risk.
- In this article, I highlight 2 picks with strong fundamentals and balance sheets.
- Chatham Lodging Trust Preferred Stock and Capital Southwest offer attractive yields above 8% and upside potential.
Treasuries currently yield 4-5%, prompting some investors to park cash in bonds rather than equities. While treasury bonds can be a great place to put capital to work when it comes to principal that you need within a certain time frame, one should probably ask the following questions when it comes to putting too much capital in bonds:
- Opportunity Cost: What am I missing out on in the equity markets by investing in bonds?
- Real Return: What is the real rate of return after taxes, and does that surpass inflation in a meaningful way?
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For further details see:
I'm Banking On These 8% Yields For A Better Tomorrow