With the stock market continuing to be volatile in 2023, many investors are looking to pivot to more stable sources of income. One popular strategy is to build a portfolio focused on high dividend stocks and other securities that can generate higher yields. To successfully execute this approach, having access to insightful research and analysis is crucial. This is where high yield investing newsletters can provide significant value. By leveraging the expertise of financial professionals, investors can identify attractive income opportunities and avoid potential dividend traps. However, not all advisories in this area are created equal. Finding a newsletter that aligns with your specific objectives and risk tolerance is essential.
Assess the track record and experience of the newsletter provider
The most important factor when evaluating a high yield investing newsletter is the actual performance. Try to find historical returns and dividend income generated for subscribers over multi-year periods. This track record will give you confidence in their stock selection process. Also research the background of the analysts and portfolio managers providing the recommendations. Look for advisors with extensive experience specifically focused on income securities and a proven ability to navigate different market environments successfully.
Understand the investing approach and sources of yield
High yield investing newsletters can differ significantly in their strategy and sources of income. Some focus exclusively on traditional dividend paying stocks while others utilize options strategies, preferred shares, REITS, MLPs, BDCs and other income-generating securities. Having a newsletter aligned with your preferred asset classes and risk tolerance is vital. Also look for advisories providing transparency into their research methodology and criteria for selecting specific opportunities.
Evaluate the level of service and actionability of recommendations
The format and frequency of updates from a high yield newsletter can impact its usefulness. Look for advisories that provide specific, actionable recommendations rather just general commentary. Some newsletters provide daily alerts and portfolio updates while others are monthly. Consider how real-time insights fit with your investing style. Also assess any additional membership perks like online forums, special reports and direct access to analysts. The level of service influences the value derived.
Compare cost to ensure the fee structure is justified
Prices for high yield focused newsletters can range from under $100 per year to over $1,000. Generally, the higher priced options will provide more personalized guidance and proprietary tools. However, a higher fee does not always equate to better performance. Carefully weigh the costs against the projected dividends and capital gains. For most individual investors, a mid-range annual fee of $200 – $500 per year is reasonable for a premium newsletter service.
Selecting a high-quality high yield investing newsletter requires thorough due diligence across a variety factors. By taking the time to evaluate track records, investing methodology, level of service and costs, income investors can partner with advisors that meet their specific needs. This provides invaluable insights and can enhance dividend returns over the long-term.