I am curious to know if anyone has come across a relatively low-risk investment that pays an average of 10% or better?
LJ
LJ
Investment interest north of 10%
- Thread starter lessjamie7
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If you are talking yield . There are split funds that pays 12% monthly and since monthly distribution is classified as return of capital. There is very little tax will be paid until you sell and then the distribution will be capital gain.
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You can both keep dreaming. With borrowing rates so low and inflation rising but still at reasonable levels, why would anyone pay 10% on a low risk investment? The best you can hope for is buying some high quality dividend paying stocks, you may end up getting 5-6% on your investment.
Yes. GTA real estate. Everyone is buy it and gov want you to make more than 10% profit when you sell so they can collect more tax from you 
Mortgage Investment Corporations, offered by some independent mortgage brokerages in Ontario, hold pooled mostly second mortgages and pay 8 % or more annually.
The best ones only write mortgages so that total first and second mortgages are no higher than 65% of very conservative appraisals, and mainly on properties in the GTA.
The income is taxable as interest, but of course in RRSP's and TFSA's that income is tax free or at least tax deferred.
Under OSC regulations you must be a "qualified investor" to purchase units of an MIC, and the minimum investment is usually $25,000, with a 2 year minimum hold period. To be a qualified investor you need to have a significant amount of net assets in your name.
There is no government backing of these investments, but they have historically been very solid due to the continuing strength of the GTA real estate market.
The best ones only write mortgages so that total first and second mortgages are no higher than 65% of very conservative appraisals, and mainly on properties in the GTA.
The income is taxable as interest, but of course in RRSP's and TFSA's that income is tax free or at least tax deferred.
Under OSC regulations you must be a "qualified investor" to purchase units of an MIC, and the minimum investment is usually $25,000, with a 2 year minimum hold period. To be a qualified investor you need to have a significant amount of net assets in your name.
There is no government backing of these investments, but they have historically been very solid due to the continuing strength of the GTA real estate market.
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When it comes to stocks you cannot get 10% dividend without taking significant risk
As others have pointed out, no such thing.
Best I could suggest is to buy Canadian bank stocks. You will receive a dividend and the stock is as a safe as it can be. (which means that it could go to 0, but it's unlikely.)
If RBC goes broke, the country of Canada will also be broke.
The closest to 10% (and the safest) stock I can recommend is Enbridge (TSE:ENB). It pays around 7% dividend.
Its low risk and its Canadian as well, so you'd be supporting a CDN company
Its low risk and its Canadian as well, so you'd be supporting a CDN company
He didn't actually specify dividends. I guess I will have to live with the shit returns I got.
Buy
Settlement DateJul 2, 2021
Value-1,046.20 USD
8PXLST9CALL MRNA 10/15/21 320 MODERNA INC UNSOLICITED DA OPEN CONTRACT
Quantity1
Price10.35
Sell
Settlement DateJul 21, 2021
Value5,244.77 USD
8PXLST9CALL MRNA 10/15/21 320 MODERNA INC UNSOLICITED CA CLOSE CONTRACT
Quantity-1
Price52.56
Buy
Settlement DateJul 2, 2021
Value-1,046.20 USD
8PXLST9CALL MRNA 10/15/21 320 MODERNA INC UNSOLICITED DA OPEN CONTRACT
Quantity1
Price10.35
Sell
Settlement DateJul 21, 2021
Value5,244.77 USD
8PXLST9CALL MRNA 10/15/21 320 MODERNA INC UNSOLICITED CA CLOSE CONTRACT
Quantity-1
Price52.56
Index funds/ETFs that track the S&P500. The S&P500 has returned an average of 13.6% annually according to Goldman Sachs.
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i cant believe it took this long for someone to mention the S&P 500. i believe that's my answer.Index funds/ETFs that track the S&P500. The S&P500 has returned an average of 13.6% annually according to Goldman Sachs.
Average Stock Market Return: A Historical Perspective and Future Outlook
Discover the historical average stock market return and what factors influence it. Learn what to expect for stock market performance in 2024 and beyond.
Caveat: It's advisable to wait for the next correction or enter the position gradually using dollar cost averaging.
another one & it's fairly safe as well is LBS:tsx. Life bank split pays about 12% , it's a mixture of banks and life companies
I recommend a Canadian index fund such as from Vanguard eg VCE. Returns over 7% and low risk in the long run. Also REITs such as car.un and kmp.un
In general, the lower the risk lowered the return, and vice versa. On one extreme are GICs and bondsWith extremely low risk and very little return. At the other extreme are stocks with high risk and volatility but high return.
Stocks are the only way to get over 10% return. But the risk is high.
There are many major companies that went completely brike such as AOL, BlackBerry, Nokia, and enRon, sears, Nortel, and many dotcom companies. Mutual funds are therefore your best bet to protect against complete losses.
In general, the lower the risk lowered the return, and vice versa. On one extreme are GICs and bondsWith extremely low risk and very little return. At the other extreme are stocks with high risk and volatility but high return.
Stocks are the only way to get over 10% return. But the risk is high.
There are many major companies that went completely brike such as AOL, BlackBerry, Nokia, and enRon, sears, Nortel, and many dotcom companies. Mutual funds are therefore your best bet to protect against complete losses.
I have LBS . I also bought at SBC at 8.62 which is now at 15 with 8% div. I recommend all pipeline like PPL, KEY and ENB. I also recommend REITS . Now the yield is quite low for big one like CAR, REI. I locked in SRU at 8% at 23 which is now hovering around 30.
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