Finance
Never Invest in These High Yield Dividend Investments
Date: 2026-06-04 20:30:39
My Portfolio & Connect: https://www.patreon.com/dividendbull
Today we’re going to look at several categories of high-yield investment types that I generally don’t recommend income investors buy. If you’re the kind of investor that wants a passive investing strategy, one that doesn’t involve having to regularly rotate out of positions, then I would not recommend holding these types of investments. Almost every investment in the categories I’m going to cover has delivered negative or very low total returns. Now I want to make it clear that anyone can make a profit from even a bad investment.
Whenever I single out a bad stock, someone will leave a comment that sounds like this: “You’re wrong about this stock. I bought it here, and then I sold it here. I made a profit, and therefore it can be a good investment.” It is possible to earn positive return from what I’ll discuss in the short term. But understand that nearly all of these investment types will either deliver a negative return or a positive return that far underperforms the market. Depending on the market cycle, some of what I’ll discuss can even perform well over the course of several months to a year. But just understand that I’m assuming a time horizon of a decade. None of these investments are likely to do well if you hold them for at least 10 years, in other words, if you’re trying to retire off them.
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