While energy stocks usually steal the big-yield show, about half of the stocks below are outside the energy patch, which will help you add diversity to your high-yield holdings, observes Bryan Perry of Cash Machine.
Chesapeake Granite Wash Trust (CHKR)
Yield 11.78%. The operator of oil and gas properties in Oklahoma produced 3.1 billion cubic feet of gas, enough to generate $27 million (58 cents per unit) in distributable income while selling that gas at prices under $1.50 per mcf. With gas prices firming up to $3 and oil holding above $90 per barrel, I would expect future distributions to be easily maintained or increased.
Niska Gas Storage Partners (NKA)
Yield 11.30%. Shares of NKA have been consolidating for the past six weeks and are starting to break out to the upside. Natural gas prices are breaking out and winter is just around the corner. If it's a cold one, holders of Niska will fare very well, as prices for stored gas will spike.
Northstar Realty Finance (NRF)
Yield 9.85%. A huge rally is underway in the distressed mortgage REIT market, which we've been fortunate to have been riding a good portion of. As is true with the other winners in the sector, buying the dips has been nothing but profitable.
SandRidge Permian Trust (PER)
Yield 11.46%. Again, let's use the lull in the high-yield energy patch to accumulate shares. If natural gas prices get back above $3 per mcf and crude is trading toward $100 per barrel, PER should make another attempt at $24, or roughly 20% higher than its current price.
Prospect Capital (PSEC)
Yield 10.44%. This leading BDC is coming off a secondary offering preceded by some insider buying that offers investors a nice entry point. PSEC pays monthly and has made known that it intends to unload some portfolio holdings for some handsome gains.
Rentech Nitrogen Partners (RNF)
Yield 12.91%. The high-powered fertilizer story behind RNF has been a boon to shareholders all year. The shares finally took a breather and did some constructive backing and filling, affording an attractive entry point to initiate and add to positions.