CHAPTER 6

Get Higher Yields (and Maybe Some Tax Benefits)

Certain types of stocks pay higher yields than your typical dividend stock. These include closed-end funds, Real Estate Investment Trusts (REITs), Business Development Corporations (BDCs), Master Limited Partnerships (MLPs), and preferred stock. While these types of stocks are lesser known and can be a little more complicated, they are worthy of your consideration. Additionally, MLPs have unique tax implications.

Let’s start with the simplest: closed-end funds.