High-Yield Equity Spotlight: RadioShack
High-yield is a scary segment of the equity-income universe, given that dividends can and do get reduced and eliminated, something that will happen to you at times if you regularly play this area. Nevertheless, risk is part of the equity landscape (otherwise, we'd all be 100% in treasuries) and applying a bit of elbow-grease to high-yield stocks can, actually produce good results. I've written before on Seeking Alpha about a stock screening strategy along these lines which I refer to as Prudent Yield Hog, and the latest fine-tuning of this protocol, the one I'm now using with real money, produced a total return of 6.2% in the 2012 first quarter, and backtest results suggest an annualized total return of 10.0% from 12/31/03 through 3/28/12. These numbers compare well to benchmarks: The iShares Select Dividend Index (DVY) returned 4.71% in the 2012 first quarter and delivered 3.77% annual returns from 12/31/03Complete Story »
- Original article
- Login or register to post comments

