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A handful of income-generating investments -- through a combination of income and capital gains -- have already generated big gains barely a month and a half into the volatile New Year.

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How to ā??Double Your Dividendsā??

A handful of income-generating investments — through a combination of income and capital gains — have already generated big gains barely a month and a half into the volatile New Year.

2013 was a tough year if you were an income investor.

After all, the Fedā??s zero interest rate policy (ā??ZIRPā?) has been punishing savers with its low interest rates since 2009. Many retirees depending on their accumulated savings had grown increasingly frustrated trying to eke out income from their hard-earned investments. So, itā??s no surprise that many had piled into income investments that promised regular high single-digit, or even double-digit, percentage income.

But with the Fed announcing the onset of tapering back in May — and then actually launching it in December — the bottom dropped out from virtually all ā??safeā? income investments.

Income investors suddenly found that even if a diversified portfolio of, say, U.S. Real Estate Income Trusts (REITs) boasted headlines about double-digit yields, that mattered little if the principal dropped by 20%, thanks to the threat of rising interest rates.

Meanwhile, these same investors stood by as stock market investors enjoyed their biggest gains since 1997.

Read more about how you can increase your investment income with dividends at Eagle Daily Investor.

Written By

Nicolas A. Vardy is the London-based International Economics Correspondent for Human Events.

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How to ā€˜Double Your Dividendsā€™

2013 was a tough year if you were an income investor.

After all, the Fedā€™s zero interest rate policy (ā€œZIRPā€) has been punishing savers with its low interest rates since 2009. Many retirees depending on their accumulated savings had grown increasingly frustrated trying to eke out income from their hard-earned investments. So, itā€™s no surprise that many had piled into income investments that promised regular high single-digit, or even double-digit, percentage income.

But with the Fed announcing the onset of tapering back in May — and then actually launching it in December — the bottom dropped out from virtually all ā€œsafeā€ income investments.

Income investors suddenly found that even if a diversified portfolio of, say, U.S. Real Estate Income Trusts (REITs) boasted headlines about double-digit yields, that mattered little if the principal dropped by 20%, thanks to the threat of rising interest rates.

Meanwhile, these same investors stood by as stock market investors enjoyed their biggest gains since 1997.

Read more about how you can increase your investment income with dividends at Eagle Daily Investor.

TRENDING NOW:

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