If you're looking for big yields and are willing to stretch out your risk profile a bit, these stocks are well worth a serious look, observes Bryan Perry of Cash Machine.
BGC Partners (BGCP)
Yield 10.81%
With all the
derivative trading by global fund managers to protect assets, BGCP should post a
good second-quarter report. The company's main business is to act as a
broker, and it carries little overnight exposure.
Credit Suisse High Yield Bond Fund (DHY)
Yield
10.39%
High-yield corporate bonds remain very
attractive in the current landscape of low interest rates, low inflation, and
moderate economic growth.
Horizon Technology Finance Corporation (HRZN)
Yield
11.54%
The BDC sector has been displaying excellent relative
strength. HRZN is a more thinly traded stock, and when a big seller shows up,
the shares come under unwarranted pressure. But that provides for a good buying
opportunity for us.
GAMCO Global Gold, Natural Resources & Income Trust (GGN)
Yield
12.31%
All the uncertainty surrounding the euro has gold prices back
on the way up. Mining stocks typically lag gold prices and then move in a
slingshot fashion higher as they play catch-up.
E-TRACS 2x Leveraged Long Alerian MLP Infrastructure Index
(MLPL)
Yield
12.20%
Oil and gas prices have started to level out, and this
exchange traded note now trades ten points off its high and sports a huge
yield.
Newcastle Investment (NCT)
Yield
12.66%
The company continues to acquire
mortgage servicing contracts that will prove very accretive to earnings in the
months ahead. Management just declared the latest 20-cent dividend. Shares
should rise into that date.
Related Reading:
Tailwinds for the Muni Market?
