Co-produced with PendragonY
Investing in high-yield defensive picks is a very effective income strategy, particularly in times of great uncertainty. Infrastructure, particularly utilities, is a defensive sector thanks to the necessity of their product and significant regulation that creates a large moat.
Utility companies also tend to have high, and rather stable, cash flow. As a result, individual utility companies often have fairly low yields since they are very popular with dividend investors. At High Dividend Opportunities, we generally seek to have dividend yields in excess of 6%. That puts many quality utility companies out