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10 High Yield Investment Ideas – Including Pfizer Inc. (NYSE:PFE) and Intel Corp. (NASDAQ:INTC)
Investing in dividend paying stocks offers a few benefits such as a hedging against inflation, dividend payers also provide a steady cash stream in bear market periods and serve as a way to add some cash to a portfolio without moving in and out of positions. During tough market environments we recommend buying safe, well managed, attractively-priced dividend stocks as opposed to fleeing the equity markets to the “safety” of the realm of fixed-income. This strategy serves as a way to “stay in the game” if the market does experience a run-up, while at the same time protecting your portfolio from a long-term bear market.
Utilizing The Applied Finance Group’s backtest system, we ran a strategy of investing only in companies with a market capitalization of greater than US$ 1 Billion and a dividend yield above 3%. The strategy has worked fairly well with the annualized returns over the last 12 years beating the overall universe. While the dividend paying strategy worked well, a strategy based on AFG’s valuation metric performed better.
The best results were achieved by utilizing both variables. When we limited our universe to companies that had a dividend yield greater than 3% and had an attractive AFG valuation score, the returns were even better than the standalone variables.

The companies that we have provided in our list of attractive dividend-payers include the following criteria…
To meet the screen criteria companies must:
a) Have above $1 billion market cap
b) Pay a dividend yield of 3.15% or larger
c) Rank above the 70th percentile of companies within its sector in valuation attractiveness

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This hot news appears to be so generic that the secret sauce must be all in the AFG's Valuation Model. The names that turn up would be on any informed market observer's most likely suspects for a top ten list, so what is the big deal?
I suspect the net has been lowered here on ZH if this stuff is getting posted as a "contributor" status. Gimme a break, Tyler. High yield investment? sure, compared to dust bunnies under your couch.
This is interesting but why work so hard? There is an ETF for high yield corp bonds that does ok.
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s232907077]&disp=P
Also note an etf for high yield emerging market bonds (see bottom of chart).
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3225058&cmd=show[s234575393]&disp=P