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Avoid This Dangerous Yield Trap And Buy These 6 High-Yield Blue-Chips Instead

Avoid This Dangerous Yield Trap And Buy These 6 High-Yield Blue-Chips Instead

Posted On September 12, 2022 3:08 am
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Income investors like retirees love midstream for the high yield but hate MLPs for their K1 tax forms. This ETF offers a 7.5% yield and no K1 tax form.

This ETF is a classic sucker yield trap with steadily falling income and -61% inflation-adjusted returns over 12 years if you took payouts in cash instead of stock.

70% of this ETF is low-quality value traps, and a diversified portfolio of crap is still crap.

Here are six non-K1 high-yield safe midstream blue-chips that yield 5.5%, are 11% undervalued, and analysts expect to deliver 19% returns within a year.

More importantly, they are expected to deliver 13% annual returns, just as they have for the last 32 years, even through the worst oil crash in human history. If you want to retire rich and stay rich in retirement, you need to avoid yield traps like this ETF and trust your savings to world-class companies that deserve it.

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About author

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.

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