Where to Invest for Steady Income: Safe Bets vs. Higher Yields
Investors seeking steady income have several options to consider. Some prefer the stability of savings accounts or certificates of deposit, while others turn to dividend stocks or real estate investment trusts (REITs). Each choice offers different levels of risk, reward, and security.
High-yield savings accounts and CDs currently provide guaranteed returns. CDs now offer around 4% APR, and some savings accounts pay over 4%. Both are FDIC insured, ensuring financial protection for depositors.
Dividend stocks remain a popular choice for passive income. The S&P 500 currently yields about 1.13%, but certain companies deliver far more. Firms like Target, Stanley Black & Decker, and PepsiCo have raised their dividends for at least 25 consecutive years. Investors can also access these stocks through dividend-focused ETFs, which bundle reliable payers together.
REITs allow people to invest in real estate without managing properties themselves. CT REIT has grown revenue, funds from operations (FFO), and dividends every year since its public debut over a decade ago. It now offers a monthly yield of roughly 5.9%, with projections of 3% annual growth in FFO and dividends through 2026. Bridgemarq Real Estate Services (BREUF), another Canadian REIT, provides an even higher yield of 9.9%, backed by strong FFO performance expected into late 2025. However, REITs can be more volatile than broader stock markets, meaning prices may shift sharply.
Stable options like CDs and high-yield savings accounts offer modest but guaranteed returns. Dividend stocks and REITs can deliver higher yields but come with market risks. Investors must weigh security against potential growth when choosing where to place their money.
