10 Big-Yield Low-Risk Investments Worth Considering

As the market continues to climb higher, and interest remain artificially low, income-investors continue to search for attractive opportunities. For your consideration, we have highlighted ten big-yield investments that we believe have relatively low levels of risk. Here is the list:


10. Welltower (Yield 4.4%)

Welltower (HCN) is a big dividend healthcare REIT with a compelling valuation. The dividend is safe, and we are comfortable with the risks it faces (e.g. healthcare reform, possible interest rate increases, growing competition, and industrywide department of justice investigations regarding possible overbilling practices). If you are a risk-averse income-focused investor, we believe Welltower is worth considering. You can read our recent full report on Welltower here.

9. Frontier Communications (Yield 8.7%)

Frontier Communications (FTR) is a big dividend (8.7%) telecom company that is currently trading at an attractive price, especially considering its nearly 7% decline so far this month. Frontier has created an attractive niche for itself by operating in regions that are heavily subsidized, and it deepened its foothold in that space earlier this year with a $10.5 billion acquisition of assets from Verizon. Additionally, the company easily covers its dividend payments, its current valuation is compelling, and the recent acquisition will give Frontier the cash flow to pay down debt and ultimately position for continued long-term success. You can read our recent full report on Frontier here...

8. AmeriGas Partners (Yield 8.1%)

AmeriGas is the largest propane distributor in the US (with about 15% retail market share), it’s organized as a master limited partnership (MLP), and it currently pays a big safe growing distribution yield of 8.1% (paid quarterly). Additionally, AmeriGas offers low volatility, a low beta, and an exceptionally attractive return on invested capital. Further, AmeriGas is uniquely positioned to successfully execute on its growth-through-acquisitions strategy, and fears of a declining propane market are largely overblown. And despite the recent rebound in the stock price, the valuation is still very attractive for long-term investors. Overall, we believe AmeriGas’ big distribution payments are very safe, and long-term investors may want to consider adding this MLP to their diversified income-focused portfolio. You can read our recent report on AmeriGas here...

7. Ventas (Yield 3.9%)

If it’s low-risk and an attractive dividend you’re after, then Ventas fits the bill. This healthcare REIT spun off its higher risk skilled nursing business last year thus increasing its safety. Ventas has a diversified investment portfolio, an attractive dividend yield, and the winds of an enormous demographic trend at its back. Despite the strong year-to-date price performance we believe this REIT has many years of continued growth ahead.

6. HCP (Yield 5.9%)

HCP is an attractive low-risk healthcare REIT offering a big 5.9% dividend yield. The stock price has been held back by recent challenges with its skilled nursing HCR ManorCare properties and its upcoming spinoff. However, we believe the risks are already baked into the price, and the spinoff helps unlock value. Over the long-term, HCP has tremendous growth opportunity, and the recent uncertainty has created a relative attractive price and compelling entry point for long-term income-focused investors. You can read our full recent report on HCP here...


Our top 5 big-yield low-risk investments are reserved for members only. If you are a member, you can access the list here.


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