As someone who’s constantly on the hunt for high yielding investments, a common question I hear is “how high is too high of a yield before a dividend stock becomes too risky?” And that’s a really difficult answer because it all depends on the type of investment. For a business development company, these typically yield around 8 to 10%. Closed-end funds can be anywhere from 6 to 12%, and many covered call funds go for around 10 to 12%. This, in my opinion, is right around average for these types of investments. But there’s just something about a stock or fund offering 15% that some investors try to look out for. And although there are possibilities out there for people seeking a 15% yield, the real question is, are any of these investments actually any good? When it comes to investments that reach the 15% threshold, there are few options available to investors. But as you can imagine, many of them come with a very high level of risk.

#dividendinvesting #dividends #dividendstocks

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