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Top 3 Income Investing Plays

By Doug West

Republish: EasyPublish™ Published: 20Mar2012 Word count: 423 Viewed: 32 time(s) Get Free Content For Your Site

Many people hold off on investing in anything because they feel like they need more current income, and they don't want to have to wait years for an investment to pay off.

What is the solution if you are in that category? Income Investing. What exactly is income investing? You may have heard the term and wondered. After all, isn't it the goal of any investor on any investment to turn a profit? Yes, it is. However, an income investor is looking for recurring income right now, and growth in the future too.

After the 2008-2009 housing bubble and market meltdown, many analysts were raving about the benefits of dividend paying stocks. Stocks that pay dividends are only one type of income investment. If your stock is providing you income (in the form of dividend payments), and the value of the stock is rising, you really have the best of both worlds. Long term capital gains and current income too!

This is exactly the type of thing investors are looking for when they invest in real estate. Property that is cash flowing now, and property value that is rising. Some tend to think you can only find that in real estate. However, there are a few safe ways to do that in the market too, without becoming a landlord!

We mentioned dividend paying stocks. My favorite play for current income is by investing in Master Limited Partnerships(MLPs). You can buy MLPs inside of your stock account with your favorite online discount broker. Although you buy them like a stock, they behave much differently. The main thing you should want to know is that they can provide Rock Solid income for you now, and future growth as well. In fact, many MLP values grew during the melt down, and increased the income payments too!

There are also a few Exchange Traded Funds that pay dividends. If I had to list the options mentioned here in order I would rate them as:

1) MLPs

2) ETFs that pay dividends

3) Dividend paying stocks

Again Master Limited Partnerships are my favorite of the three. As with any investment, you need to do your homework. There are some MLP investments that I would not touch, and yet others that I would wait in line to buy.

I've always felt that income paying investments are a better play than those that only provide future profit. After the horrible meltdown, many analysts suddenly agree!

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