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How Many High-Yield Financial Stocks Does an Income Portfolio Actually Need?

If you are buying stocks with 10% yields, you have to make sure you appreciate the risks you are taking on.

How Many High-Yield Financial Stocks Does an Income Portfolio Actually Need?

Published August 10, 2026 · Category: Finance

Overview

When I was a younger investor, I focused on buying stocks with yields of 10% or higher. I no longer invest that way; instead, I focus on the company before the dividend yield. If you are a dividend investor looking to create a reliable long-term income stream, you should tread carefully when considering ultra-high-yield stocks like AGNC Investment (NASDAQ: AGNC) and Ares Capital Corporation (NASDAQ: ARCC).

They aren't bad companies, but they come with an important risk you shouldn't ignore. Here's how you should think about stocks with yields that may seem too good to be true.

Image source: Getty Images.

Details

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Source

Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.