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Bond yields remain low - the 10-year Treasury note returns 2.19% - which has made high-yield investments even more attractive than usual right now.
The 10-year Treasury yield is down about 18% in the past six months, for several reasons. Both the ruble crisis in Russia and falling global oil prices have been major contributors. Those factors have also increased volatility in the emerging bond market.
That's why there are better high-yield investments to add income to your portfolio today.
Master limited partnerships (MLPs) and real estate investment trusts (REITs) are two great places to start. They offer high yields and frequently dodge the losses some dividend stocks see during market corrections. Both also give investors the option to delay their personal income tax liability for years at a time.
And both industries are booming.
Alerian Index figures show the combined market cap of MLPs has skyrocketed from $25 billion to $350 billion in the past decade. And according to the National Association of Real Estate Investment Trusts, the combined market cap for REITs has more than doubled.
To add these high-yield investments to your portfolio now, here are three picks to consider...
High-Yield Investments for 2015 No. 1: Omega Healthcare Investors Inc. (NYSE: OHI)
The Hunt Valley, Md.-based healthcare REIT offers a huge profit potential for investors in 2015.
Omega leases long-term contracts to operators of skilled nursing facilities (SNFs) and assisted living facilities (ALFs).
As of Q1 2014, OHI owns 547 facilities located in 37 states. These are all operated by 49 third-party healthcare-operating businesses. This allowed the company to allocate $121 million for new investments and capital-improvement projects.
"Omega's strategy is a good one - and is important to look at, albeit quickly, since it illustrates why it's such a good dividend play," Money Morning's Executive Editor Bill Patalon said.
It also targets a burgeoning demographic. The number of Americans aged 85 and older is 2% of the U.S. population as of 2013. This group is expected to comprise 5% of the U.S. population in 2050. At that point, OHI's customer base will reach 21 million.
OHI is also quickly monopolizing the healthcare-focused real estate industry...
The company recently announced a major purchase of Aviv REIT Inc. (NYSE: AVIV) in a $3 billion deal. That makes OHI the largest owner of skilled nursing facilities in the country by a wide margin. The deal is expected to close in Q1 2015.
OHI has climbed more than 52% in the past two years. It boasts a 5.2% yield and regular dividend increases over the past 10 years.
And that's just the first high-yield investment to watch in 2015. Here are two more...
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