Warren Buffett Says, ‘When It Rains Gold, Put Out The Bucket’ And These High Yield Investments Are Making It Rain

Warren Buffett Says, ‘When It Rains Gold, Put Out The Bucket’ And These High Yield Investments Are Making It Rain

Warren Buffett Says, “When It Rains Gold, Get Out the Bucket,” and These High-Yielding Investments Make It Rain

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In his 2016 letter to Berkshire Hathaway shareholders, legendary investor Warren Buffett wrote: “Every decade or so, dark clouds will fill the economic sky and briefly rain gold. When such downpours occur, it is imperative that we rush outside with basins, not teaspoons.”

The dark clouds so far this decade have been inflation and the resulting high interest rates. The gold that rains comes in the form of cash returns through high-yielding investments like dividend stocks and private credit.

Capturing the high yield of dividend stocks

Higher interest rates lower the prices of dividend-paying stocks, leading to a higher yield. If dividend payouts remain constant or continue to grow, investors can essentially “lock in” these higher yields and benefit from price growth when rates fall again.

A high-yielding dividend stock that has the potential to provide long-term passive income in addition to price growth is AT&T Inc. (NYSE:T). The company pays a quarterly dividend of $0.2775 per share, which translates to an annual yield of 6.38%.

The three most recent analyst notes were issued by Barclays, Scotiabank and RBC Capital on April 29, 2024, April 25, 2024 and April 11, 2024 respectively, with an average price target of $19.83 for a implied increase of 13.59%.

Intervening for banks

Private credit offers an attractive opportunity in today’s environment of higher interest rates and longer durations, as investors can earn interest on high interest rate loans. Banks have tightened their lending requirements, opening up the opportunity for private lenders to step in and provide loans. Many of these private lenders pool funds from multiple investors, allowing individuals to receive attractive cash returns while letting professionals manage the loans.

THE Private credit fund Arrived offers investors an attractive opportunity to earn higher returns by investing in short-term financing for real estate projects. With interest rates reaching 10-year highs, this fund simplifies access to a diversified pool of real estate-backed loans, targeting annualized dividends of 7-9%.

The fund invests in loans intended to finance professional real estate projects, such as property renovations, rehabilitations or the construction of new houses, with loan terms ranging from 6 to 36 months. The fund emphasizes dividend income and capital preservation, offering investors monthly payouts and quarterly liquidity options after six months.

Click here to learn more about the Private Credit Fund and invest with as little as $100.

Base Camp Alpine Notes of EquityMultiple currently offers another attractive high-yielding opportunity, mainly due to the company’s perfect track record of on-time payments.

Alpine Notes is a powerful short-term cash management tool that also offers the security of institutional grade real estate. They have a target APY of 9.00% over a 3-month term and a low minimum investment of $1,000.

Interest is accrued and compounded monthly, thereby increasing the effective annualized rate of return. Notes may be automatically transferred into a subsequent series of Notes at maturity to provide increased compounding of returns, or you may withdraw them to put your capital to use elsewhere.

EquityMultiple has issued 61 series of Alpine Note to over 1,500 investors and has met all payment and financing obligations with no missed or late interest payments.

Click here to learn more about what makes Basecamp Alpine Notes an attractive high-yield investment.

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This item Warren Buffett Says, “When It Rains Gold, Get Out the Bucket,” and These High-Yielding Investments Make It Rain originally appeared on Benzinga.com

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