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The Income Investor

Latest Articles

Ride the Tech Rally with Yields of Up to 8.5%

By Dr. Carla Pasternak

 

Tech stocks are on a roll. The Technology Select Sector SPDR (XLK) the largest technology exchange traded fund by assets has been hitting record highs. The technology-rich Nasdaq Composite has also been breaking new records and is now trading at its highest level ever. The Dow Jones U.S. Technology Index is trouncing the S&P 500, with year-to-date returns of nearly 18%, almost triple the benchmark's.

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Look Overseas for Value and Yield

By Dr. Carla Pasternak

 

Investors are turning to Europe amid concerns that U.S. equities are overvalued. At a forward P/E of 18 times 2017 earnings, the S&P 500 is trading well above its 10-year historical average of 14 times. By comparison, the benchmark STOXX Europe 600, which represents 17 countries across the European region, offers better value.

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High-Yield, Low Risk ETFs Outpacing the S&P 500

By Dr. Carla Pasternak

 

The markets have undergone a seismic  shift of massive proportions since November 8th, and after-shocks are in the wind.

 

Industrials, small caps, and banks have seen major gains on expectations that President-elect Donald Trump will push for tax cuts and deregulation that could accelerate economic growth and stoke inflation. Trump's fiscal policies could force the Federal Reserve to raise interest rates more aggressively, which would help bank stocks benefit from higher lending rates.

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BDCs Yielding 10% - Primed for Higher Interest Rates

By Dr. Carla Pasternak

 

Utilities and other safe income plays often lose their luster as rates rise. These so-called bond-like equities trade like bonds. Their share prices retreat when rates are expected to rise, and their yields, which move inversely to the share price, rise to compete with higher bond yields.

 

But not all income stocks trade like bonds. One class of dividend payers, sporting average yields of about 10%, is actually set to benefit from rising interest rates.

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