Financial providers use their expertise in capital allocation and risk assessment to help facilitate economic growth while offering consumers and businesses essential financial services. Market leaders have certainly capitalized on a favorable backdrop to boost profitability,
helping fuel a 9% gain for the industry over the past six months.
This performance has closely followed the S&P 500.
Extreme high-yielders seem appealing on the surface, but dangers lurk underneath the surface which could jeopardize the dividend payouts in the future.
High dividend stocks are naturally appealing on the surface, due to their high dividend yields. But income investors need to make sure they do not fall into a dividend ‘trap’.
Like a partner who has burned you before but is trying to change, Prospect Capital is still hard to trust. The stock is very popular with income investors because of its 13.2% yield, its low share price, and the fact that it pays a dividend monthly.
Companies Reporting Before The Bell • Ares Management (NYSE:ARES) is expected to report quarterly earnings at $1.09 per share on revenue of $864.54 million.
Corporate bonds offer yield opportunities and diversification away from equity investments. Investment-grade bonds are safer but lower yield, while high-yield bonds offer higher returns but from riskier firms.
