Do NOT Invest in These High Yielding Investments

Date: 2025-11-04 19:00:21

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What can make income investing difficult is that within the world of high yielding investments, there are plenty of good stocks and funds that exist, but there’s unfortunately a lot of garbage that also exists. A lot of stocks, ETFs, and closed-end funds offer really high yields but also have a long history of dividend cuts and falling share prices. So today we’re going to take a look at not only just individual companies or individual dividend funds that have awful track records, but we’ll also look at entire sectors or categories of investments that should generally be avoided. Now there may be a couple of investments that aren’t bad, or they might do well during specific periods. But I would generally advise most people to avoid all of these high yielding investments, despite their attractive yields.

Now I’m not saying that it’s impossible to make money from these investments or investment categories. To give an example, this is one type of stock we’re going to take a look at today. If you had bought this stock here and sold it here, then you would’ve made a profit. I run into people every now and then who tell me they bought an awful investment and still made a profit from it. And if you’re able to time things, which is usually just luck, then you can make a return on nearly any investment. When I say you should avoid these investments, what I mean is you should not try to fund a retirement off them. I would not recommend holding what I’m about to discuss for the long term, as in years and years, to try and live off their dividends. Because practically everything we’ll look at has declined over time.

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