The art of generating high returns through buying and selling shares is challenging. Perhaps the most stress-free way of approaching the market is to buy high-yielding shares and hold them for the dividends.
The following five businesses could create the perfect start to your dividend portfolio:
WAM Capital Limited (ASX: WAM) is one of the high-performance listed investment companies (LICs) run by Geoff Wilson and his investment team.
It focuses on fast-growing businesses whilst keeping a good amount of cash on hand for safety and opportunities.
It currently has a trailing grossed-up dividend yield of 8.78%.
Cromwell Group (ASX: CMW) is a property and fund manager. For a commercial real estate investment trust, it has a high proportion of tenants that are government departments. Government entities are generally more attractive as long-term tenants.
It pays a quarterly distribution and is currently trading with a trailing yield of 8.36%.
Telstra Corporation Ltd (ASX: TLS) is Australia's telecommunications giant. Its current troubles have been well documented in recent weeks, but the current share price could indicate now is the time to start thinking about buying shares at this beaten-down level.
Telstra has a trailing grossed-up dividend yield of 10.5%.
Clime Capital Limited (ASX: CAM) is another LIC. It has an interesting strategy of investing in shares both in Australia and internationally whilst keeping some cash on hand for any opportunities.
It pays a quarterly dividend and its trailing grossed-up yield is 7.75%
National Storage REIT (ASX: NSR) is Australia's largest self-storage provider. I think owning National Storage shares is a good way to generate income whilst not missing out on land values appreciating.
It's currently trading with a trailing yield of 6.1%.
Foolish takeaway
I think all five of the above ideas could generate good income for years to come for investors. Out of the five I think WAM Capital and Clime could provide investors with the best total shareholder returns over the next five years.
The best income choice of all could be our number one dividend pick for 2017, which has grown its dividend every year for the last 10 years and its grossed-up yield is currently over 7.5%.
