This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Offbeat Ways to Generate 10% Yields

One note of caution: most bonds have seen a sharp run-up lately. To make sure you don't overpay, check the net asset value of any fund and compare it to the share price before purchasing. These bonds generally trade near 90% of their face value, but some funds now trade above net asset value.

Canadian REITs

Canada's strong property market allows these often overlooked REITs to pay generous distributions and healthy yields. Canadian REITs such as Scott's carry yields of up to 11.5% and pay monthly. Yields are high because these REITs, like their U.S. counterparts, pass along their income to shareholders to avoid paying income taxes. (Read my article on "Where You Can Find 11.5% Yields.")

Unlike U.S. real estate, Canada's property market is thriving. Occupancies average 97.4%, according to a June report by credit rating agency DBRS. Moreover, Canadian REITs are taking full advantage of low interest rates (even though they are now rising slightly) to refinance existing debt at historically low rates.

And don't worry about buying Canadian securities. Most U.S. brokers can fill orders on the Toronto Stock Exchange (TSX). Fidelity, E*Trade and Schwab all offer access. Buying Canadian shares can actually be as simple as buying those in the United States. At worst, it might take an extra phone call to your broker to tap into the double-digit yields.

Action to Take : The ideas mentioned above are just to get you started. And while the specific securities I mentioned offer high yields, they don't necessarily represent my favorite plays. I typically reserve those for High-Yield Investing and High-Yield International subscribers, but they do offer mouth-watering yields. The main thing to remember is that in a low interest rate world, you don't have to settle for low yields. You just need to do your homework, and get a little creative.

This article originally appeared on StreetAuthority. To read more articles from Carla Pasternak on StreetAuthority, you can visit this link.

Disclosure: At the time of publication, Carla Pasternak owned no positions in the stocks mentioned.
This article originally appeared on StreetAuthority, founded in 2001 by industry veterans Lou Betancourt and Paul Tracy. StreetAuthority is a financial research and publishing company with offices in Austin, Texas and Gaithersburg, Maryland. The company aims to help individual investors earn above-average profits by providing a source of independent and unbiased investing ideas.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
T $33.57 0.00%
MHI $13.18 0.00%
VZ $45.23 0.00%
FTR $4.96 0.00%
JNK $35.37 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs