One Of The Best High-Yield Investment Ideas You’ve NEVER Heard Of

One Of The Best High-Yield Investment Ideas You’ve NEVER Heard Of

Posted On November 8, 2018 3:52 pm

I think we can all agree that it would be ideal to be able to fund a comfortable retirement 100% from safe and growing dividends. That way you will be able to sleep well at night even in the most severe bear market because no matter how low stocks drop your portfolio’s income would be unaffected. My own high-yield income growth retirement portfolio is based around this goal and uses three time-tested investing principles:

  • High and safe yield (5+% portfolio goal)
  • Fast long-term dividend growth (10+%)
  • Good companies bought at firesale prices (high margin of safety and long-term valuation return boost) – average holding is 32% undervalued

Essentially I’m a dividend-focused contrarian value investors. That means always looking for the best opportunities in terms of generous, safe, and growing yield, that, for short-term reasons, Wall Street hates. The key to this strategy is to avoid “yield traps” or stocks with mouth-watering but unsafe dividends that are likely to be cut and thus send the share price crashing.

Fortunately Wall Street is famous for overreacting to a company’s short-term challenges, and thus there are usually plenty of great high-yield, deep value opportunities for long-term income investors to profit from. Let’s take a look at why Kite Realty Group (KRG) is one of my strongest conviction buys right now. Not just do I own it myself, but during the most recent market downturn, it was…

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About author

Dividend Sensei
Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.


  1. Joey November 12, 2018 at 9:17 am

    Hey Dividend Sensei!
    I’ve really enjoyed reading your articles after stumbling on your editorials at SeekingAlpha. I’m new to this investments game although I’m already 56yo. Though I’m currently using an investment agent, I’m intrigued at your approach to retirement using dividend investments.
    I currently have around 150K to invest aside from what I’ve entrusted to my agent and a few stocks I own positions in. I really want to retire in 9 years and have no debt. What’s the best way to use the 150K to help achieve my goal?
    Thank you–

    • Dividend Sensei November 12, 2018 at 9:24 am


      So I can’t give out personal investing advice without knowing your exact specifics. However, I maintain 5 watchlists of quality dividend stocks in my portfolio updates. Here’s the link to the last one.

      They focus on the most undervalued quality names you can buy: high-yield blue chips, fast dividend growers, aristocrats and kings, monthly payers, and my bear market buy list in which 3 of the stocks are strong buys today.

      Currently, there are about 20 stocks on those lists, in about 8 sectors. With a 9-year time frame, and given the quality of those stocks and their current valuations, you could put $150K into all 20, equally weighted, and probably do very well.

  2. Evonne R. November 17, 2018 at 11:17 pm

    I am a single mother of 43 and medically fragile from stress.

    I have $2,000. I want to invest all of it in Black Rock Health SCI OPS INV.

    I know nothing about the stock market or stocks. But I do want to make nothing out of something aggressively.

    How do I become as good as you are?

    • Dividend Sensei November 18, 2018 at 9:53 am

      It takes a lot of patience, discipline and time to gain experience and become a good investor.

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