NEW YORK ( Stockpickr) -- If you're counting on fixed-income investments to produce steady revenue streams coming in the door, then you can forget about the government. T-Bills and U.S. bonds offer some of the lowest payouts in memory, and if Fed chairman Ben Bernanke has his way, that will be the case for the next several years as well. He wants to keep rates very low to help the economy get up off of the mat.
You could turn to the corporate bonds offered up by blue chip stocks. They're quite safe, and typically offer yields in the 3% to 6% range. But for some investors, that's not enough, especially when you can find investments that yield 10% or more.
Of course, such a high-yielding investment should raise your eyebrows. If it were a risk-free rock-solid yield, then many investors would have already bought them, which would effectively push down the yield back into the single digits.Still, you need not avoid the group of ultra high-yielders completely. Some of these high-yielders have built up a decent track record, and though they made need to eventually reduce their payouts, the yields could still remain quite respectable. Here are five double-digit yielders for you to consider. >>ACTIVE STOCK TRADERS: Check out Stockpickr's special offer for Real Money, headlined by Jim Cramer, now! Two Harbors: 15.6% yield Real estate investment trust Two Harbors (TWO) trades residential mortgage-backed securities, which are bundles of both prime and subprime loans. To help deliver high yields, the company uses borrowed funds to magnify returns on equity. Since most of the income is paid out in the form of dividends, this stock doesn't move very much: It has traded between $8.50 and $10.50 for the past two years. Yet investors in this stock mainly care about the yield, which is currently 15%. Of course, exposure to both RMBS and the company's own debt is likely too scary for some investors. And since this company began operations after the mortgage meltdown of 2008, there's a limited track record. How would Two Harbors fare if mortgages collapsed again? Probably not very well. Still, the odds of that happening appear less likely with each passing quarter as the housing market starts to stabilize.
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