Reap Benefits of Double-Digit Dividend Yields If You Buy These Investments Next Week
By: Ned Piplovic
Investing to generate income streams is a key long-term investing strategy to build wealth.
However, people may overlook the value of income-producing investments as part of their portfolio. This approach omission could prevent many investors from supplementing their growth of a retirement nest egg.
To receive additional income, here are few investments that pay dividends in the next few weeks and also yield more than 10%. However, investors must act quickly, since four of these investments have ex-dividend dates next week.
TIX Corporation (OTCBB:TIXC)
TIX Corporation provides discount dinner reservations and discount ticketing services in Las Vegas for same-day shows, concerts, sporting events and other attractions.
The company’s share price swung from a 52-week high on October, 10, 2016, to a 52-week low in three weeks. After that low on Oct. 31, the share price hit 52-week lows three more times in daily trading by November 28, 2016.
However, TIX Corporation’s stock has started to recover slightly since then. At the end of trading on January 4, 2017, its share price was $1.62 — 8% higher than its recent 52-week low.
The company’s dividend yield makes this investment appealing. The quarterly dividend is only $0.055. But because of the low share price, the $ 0.22 annualized dividend payout translates to a 13.9% trailing 12-month dividend yield.
AllianzGI Convertible & Income Fund (NYSE:NCV)
This is a closed-end fund that invests in a diversified portfolio of domestic convertible securities and non-convertible high-yield bonds. As of its most recent quarterly report on September 30, 2016, the fund held almost $1 billion in total net assets.
The fund has paid a dividend since 2003, with a current monthly dividend payout of $0.065. Its annual dividend of $0.78 corresponds to a 12.2% dividend yield.
As of January 4, 2017, the fund’s share price was $6.38. This price is only 7% below its 52-week high on August 2, 2016. However, the current share price is almost 45% higher than the 52-week low than occurred on February 11, 2016.
MFS Special Value Trust (NYSE:MFV)
MFS Special Value Trust is a non-diversified, closed-end management investment company. As of November 30, 2016, more than half of the fund’s assets were high-yield corporate bonds. Combined, bonds and U.S. equities comprise more than 90% of fund’s total net assets. The Trust’s objective is to distribute at least 10% of its average daily net asset value.
It has paid dividends for more than 25 years. MFV’s current monthly dividend of $0.0498 is 1.4% higher than last month’s payout. Its annual dividend is $0.60 — a 10.6% dividend yield.
The trust’s share price rose 27% between a 52-week low on January 20, 2016 and a 52-week high on July 8, 2016. Since the July high, its share price declined 5.4% and hit $5.61 as of January 4, 2017 — still 20% above the 52-week low.
Dynagas LNG Partners LP (NYSE:DLNG)
Dynagas is a limited partnership that operates seaborne vessels transporting liquefied natural gas (LNG) for international energy companies.
The company’s dividend history goes back to 2014 only. The company increased its dividend in 2015 and had kept the same payout level since then. The current quarterly dividend of $0.4225 translates to a $1.69 payout and a 10.2% yield.
DLNG’s share price performed well over the last year to accompany the hefty dividend payout. Between the 52-week low in January and beginning of October, its share price rose more than 140% to $16.25. After a 20% pullback in November, the price rallied back up and reached a new 52-week high on January 4, 2017. The current price is 155% higher than the 52-week low in January 2016.
Ivy High Income Opportunities Fund (NYSE:IVH)
Ivy High Income Opportunities Fund invests primarily in high-yield corporate bonds and other fixed income securities.
As of November 30, 2016, corporate bonds represented 85% of total fund holdings, while senior loans represented less than 15%. In addition, less than 1% of the fund’s assets were held in U.S. equities.
From a geographical diversity aspect, U.S. assets accounted for almost 80% of the fund’s portfolio. Luxembourg-based securities represented nearly a 10% share. When adding Canadian-based securities, the top three account for 92% of fund’s total net assets.
The fund pays a monthly dividend of $0.125. Its annualized dividend payout of $1.50 converts to a 10.1% dividend yield.
Aside from its income payouts to shareholders, the fund’s stock has performed very well over the last year. The fund’s share price increased almost 40% between the 52-week low in February 2016 and the end of the year. While the share price reached the 52-week high of $14.99 during trading on December 30, 2016, it closed at $14.77 only. As of January 4, 2017, its share price was $14.86, which is the highest closing price in the last 12 months.
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Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.