{"id":10800,"date":"2023-11-26T19:32:07","date_gmt":"2023-11-26T19:32:07","guid":{"rendered":"https:\/\/connectwithfund.com\/news\/if-i-could-only-buy-2-high-dividend-yield-companies-in-november-2023-one-yields-9-77\/"},"modified":"2023-11-26T19:32:09","modified_gmt":"2023-11-26T19:32:09","slug":"if-i-could-only-buy-2-high-dividend-yield-companies-in-november-2023-one-yields-9-77","status":"publish","type":"post","link":"https:\/\/connectwithfund.com\/?p=10800","title":{"rendered":"If I Could Only Buy 2 High Dividend Yield Companies In November 2023 \u2013 One Yields 9.77%"},"content":{"rendered":"<div data-test-id=\"content-container\">\n<p><figure class=\"getty-figure\" data-type=\"getty-image\"><picture>  <\/picture><figcaption> <\/figcaption><\/figure>\n<\/p>\n<h2><strong>Investment Thesis<\/strong><\/h2>\n<p>In times of high market uncertainty, the strategic incorporation of high dividend yield companies into your investment portfolio can be an adequate and necessary step towards the construction of a better balanced and<span class=\"paywall-full-content invisible\"> more diversified investment portfolio.<\/span><\/p>\n<p class=\"paywall-full-content invisible\">In this article, I will introduce you to two high dividend paying companies that blend dividend income with dividend growth, can help you to increase the extra income your portfolio generates via dividend payments, and can augment the probability of your dividend portfolio producing positive results when investing over the long term.<\/p>\n<p class=\"paywall-full-content invisible\">Before I dive deeper into the characteristics of these two dividend companies, I would like to highlight some general benefits that high dividend yield companies can provide for your investment portfolio:<\/p>\n<ul class=\"paywall-full-content invisible\">\n<li> <strong>The Generation of Income: <\/strong>Dividend paying companies bring you the enormous benefit<span class=\"paywall-full-content no-summary-bullets invisible\"> of helping you to produce income. This provides you with much higher financial flexibility and offers the enormous benefit of not having to sell some of your stocks when you might need some extra money at a time when the market is not in your favor.<\/span> <\/li>\n<li class=\"paywall-full-content no-summary-bullets invisible\"> <strong>Significant Reduction of the Volatility and Risk Level of Your Overall Investment Portfolio: <\/strong>Companies that pay a relatively high and particularly sustainable dividend, tend to come attached to a lower risk level, particularly when compared to growth companies, thus contributing to reducing the volatility and overall risk level of your investment portfolio (their lower risk level can be reflected in their lower Beta Factor).<\/li>\n<li class=\"paywall-full-content no-summary-bullets invisible\"> <strong>Psychological Investor Benefits in Times of a Stock Market Decline: <\/strong>In times of high volatility and declining stock markets, receiving dividend payments can bring you a psychological effect that can lead you to keep the positions in your portfolio to continue benefiting from dividend payments, acting like a business owner, instead of a stock market trader. This behavior can help you to significantly increase your wealth over the long term.<\/li>\n<\/ul>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I have selected the following companies for November 2023:<\/p>\n<ul class=\"paywall-full-content invisible no-summary-bullets\">\n<li>Morgan Stanley (NYSE:MS)<\/li>\n<li>Ares Capital (NASDAQ:ARCC)<\/li>\n<\/ul>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Morgan Stanley<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Morgan Stanley is a globally operating financial services company founded in 1981. It operates in the following business segments:<\/p>\n<ul class=\"paywall-full-content invisible no-summary-bullets\">\n<li>Institutional Securities<\/li>\n<li>Wealth Management<\/li>\n<li>Investment Management<\/li>\n<\/ul>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Presently, Morgan Stanley has a Market Capitalization of $131.76B.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Morgan Stanley\u2019s Latest Quarter Results<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">In 3Q23, Morgan Stanley reported Net Revenues of $13,273M when compared to the $12,986M that were presented for the same period a year ago. It is further worth noting that the bank delivered a Return on Tangible Common Equity of 13.5%, underscoring its financial health and efficiency.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Morgan Stanley\u2019s Current Valuation<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Different metrics underline that Morgan Stanley is currently fairly valued: the bank\u2019s current Price\/Book [FWD] Ratio of 1.45 only stands slightly above its average from the past 5 years (which is 1.34), suggesting that the U.S. bank is fairly valued at this moment in time.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">At the same time, it is worth mentioning that Morgan Stanley\u2019s current Dividend Yield [TTM] of 4.05% stands 43.85% above its average from the past 5 years, further indicating that the bank is at least fairly valued at its current price levels.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Morgan Stanley\u2019s Dividend and its Combination of Dividend Income and Dividend Growth<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Morgan Stanley features a Dividend Yield [TTM] of 4.05% and a Dividend Yield [FWD] of 4.24%. Furthermore, the U.S. bank has shown notable dividend growth, with a 5 Year Dividend Growth Rate [CAGR] of 24.19%. Coupled with a Payout Ratio of 55.11%, this suggests potential for further dividend enhancements.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>The Projection of Morgan Stanley\u2019s Dividend and its Yield on Cost<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Below you can find a graphic that illustrates Morgan Stanley\u2019s Dividend and its Yield on Cost when assuming that the company would be able to raise its Dividend by 6% per year within the following 30 years.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><span><img decoding=\"async\" src=\"https:\/\/connectwithfund.com\/wp-content\/uploads\/2023\/11\/55029283-17008262456834757.png\" alt=\"Morgan Stanley: Projection of its Dividend\" width=\"640\" height=\"385\" contenteditable=\"false\" data-width=\"640\" data-height=\"385\" loading=\"lazy\"><\/span><figcaption>\n<p class=\"item-caption\"><span>Source: The Author, data from Seeking Alpha<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I do not believe that Morgan Stanley will be able to maintain the impressive dividend growth rates it has shown in recent years (Dividend Growth Rate [CAGR] of 24.19% over the past 5 years). Therefore, I have made this significantly more conservative assumption (assuming a Dividend Growth Rate of 6% for the following 30 years).<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The graphic emphasizes the substantial long-term benefits of investing in Morgan Stanley, especially given its combination of dividend income and dividend growth.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Morgan Stanley compared to its competitors<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I consider the risk level for Morgan Stanley investors to be marginally higher compared to traditional banks like Bank of America or JPMorgan. This theory is not only based on Morgan Stanley\u2019s higher Payout Ratio of 55.11%, in contrast to Bank of America\u2019s (NYSE:BAC) (Payout Ratio of 25.21%), or JPMorgan\u2019s (NYSE:JPM) (24.18%).<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Additionally, the lower Valuations of Bank of America (P\/E [FWD] Ratio of 8.87) and JPMorgan (9.22) compared to Morgan Stanley\u2019s (14.17), and their superior Profitability (Bank of America has a Net Income Margin [TTM] of 31.52%, JPMorgan\u2019s is at 35.98%, versus Morgan Stanley\u2019s 18.37%), support my view.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">However, it is worth mentioning that Morgan Stanley\u2019s Payout Ratio and Valuation are similar to the ones of competitor Goldman Sachs (NYSE:GS) (Payout Ratio of 49.61% and P\/E [FWD] Ratio of 14.53).<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Given their lower Payout Ratio, I consider Bank of America and JPMorgan\u2019s Dividend to be slightly safer compared to Morgan Stanley\u2019s, especially considering the higher growth rates of JPMorgan and Bank of America (EPS Diluted 3 Year [CAGR] of 20.73% and 29.77% respectively, versus Morgan Stanley\u2019s -1.87%).<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The more secure Dividends of Bank of America and JPMorgan reduce the likelihood of dividend cuts, thus decreasing the probability of their stock prices dropping due to a dividend cut. Therefore, I suggest allocating a slightly higher proportion to Bank of America and JPMorgan compared to Morgan Stanley.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Incorporating Morgan Stanley into Your Portfolio: The Case for a 3% Allocation Limit<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">In case you decide to add Morgan Stanley to your investment portfolio, I suggest allocating a <strong>maximum of 3%<\/strong> of your overall investment portfolio to the company.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Moderating the size of a single company relative to the entire portfolio mitigates the portfolio\u2019s downside risk. This is because a reduced stock price (for example, due to a dividend cut) would have a less significant adverse effect on your portfolio\u2019s overall performance.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Restricting Morgan Stanley to a maximum of 3% effectively reduces your portfolio\u2019s company-specific concentration risk, enhancing your portfolio&#8217;s potential for positive investment results.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Ares Capital<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Ares Capital is a business development company founded in 2004 with the objective of generating income and capital appreciation through investments in equity and debt. Ares Capital invests primarily in \u201cmiddle market\u201d companies (which include companies with an EBITDA between $10M and $250M).<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Ares Capital\u2019s Current Dividend <\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Today, Ares Capital pays a Dividend Yield [FWD] of 9.77%, suggesting that the company is particularly attractive for dividend income investors and for those looking for options to increase the Weighted Average Dividend Yield of their investment portfolio.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Ares Capital\u2019s Current Valuation<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Ares Capital presently has a Market Price of $19.65, which is only slightly above its NAV of $18.99, suggesting that the company is fairly valued at its current price level.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Comparing Ares Capital\u2019s current Dividend Yield [FWD] of 9.77% with its average over the past 5 years (which is 9.41%), also suggests that it is currently fairly valued, thus reinforcing my buy rating for the company.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Ares Capital\u2019s Profitability and Growth Perspective<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I consider Ares Capital to be an attractive pick in terms of Profitability, which is underscored by the company\u2019s Return on Common Equity of 12.67%, which is above the Sector Median of 11.66%.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I further believe that its growth outlook is appealing, which is underlined by the company\u2019s Revenue Growth Rate [FWD] of 14.81% and its ROE Growth Rate [FWD] of 9.15%, which are both significantly above the Sector Median (5.36% and -3.83% respectively).<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Ares Capital According to the Seeking Alpha Analysts and According to the Wall Street<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">According to the Seeking Alpha Analyst Rating, Ares Capital is currently a buy. The company is presently rated with a strong buy from 3 analysts, with a buy from 5 analysts, and it receives a hold rating from 4 analysts. These ratings, once again, reinforce my buy rating for the company.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><span><img decoding=\"async\" src=\"https:\/\/connectwithfund.com\/wp-content\/uploads\/2023\/11\/55029283-1700826571819403.png\" alt=\"Seeking Alpha Analyst Rating for Ares Capital\" width=\"640\" height=\"201\" contenteditable=\"false\" data-width=\"640\" data-height=\"201\" loading=\"lazy\"><\/span><figcaption>\n<p class=\"item-caption\"><span>Source: Seeking Alpha<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The Wall Street Ratings confirm the same theory: according to the Wall Street, Ares Capital receives a strong buy rating from 9 analysts, a buy rating from 5 analysts, and a hold rating from 2 analysts.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure paywall-full-content invisible\" contenteditable=\"false\"><span><img decoding=\"async\" src=\"https:\/\/connectwithfund.com\/wp-content\/uploads\/2023\/11\/55029283-17008266158097172.png\" alt=\"Wall Street Rating Ares Capital\" width=\"640\" height=\"208\" contenteditable=\"false\" data-width=\"640\" data-height=\"208\" loading=\"lazy\"><\/span><figcaption>\n<p class=\"item-caption\"><span>Source: Seeking Alpha<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Incorporating Ares Capital into Your Portfolio: The Case for a 4% Allocation Limit<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I consider Ares Capital to be an excellent choice for enhancing the generation of income. I suggest limiting its position to a <strong>maximum of 4% of your overall investment portfolio<\/strong>, reducing your portfolio\u2019s company-specific concentration risk.<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Risk Analysis<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Conducting a thorough analysis of risk factors is vital for investors to <strong>mitigate the downside risk<\/strong> of their portfolio, increasing the likelihood of securing <strong>positive<\/strong> <strong>investment results<\/strong>.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">An extensive risk analysis was also part of my latest portfolio allocation article, which I published on Thursday:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">How To Build A Dividend Portfolio Allocating $100,000 among November\u2019s Top 20 Dividend Companies<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Both Morgan Stanley and Ares Capital are part of this dividend portfolio, accounting for 3% and 4% of the overall investment portfolio, following my own suggestion to limit their share in relation to the overall portfolio, aiming to reduce its risk level.<\/p>\n<h3 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Risk Analysis &#8211; Morgan Stanley<\/strong><\/h3>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Key Risk Factors for Morgan Stanley Investors to Consider<\/strong><\/p>\n<ul class=\"paywall-full-content invisible no-summary-bullets\">\n<li> <strong>Intense Competition within the Financial Services Industry: <\/strong>Operating globally, Morgan Stanley faces intense competition within its industry, competing with commercial banks, investment banking firms, brokerage firms, insurance companies, electronic trading and clearing platforms, etc.<\/li>\n<li> <strong>Market Risk: <\/strong>Morgan Stanley\u2019s financial results are sensitive to global market and economic conditions, including the volatility of equity, or fixed income, interest rate fluctuations, inflation and currency changes.<\/li>\n<li> <strong>Credit Risk: <\/strong>Morgan Stanley\u2019s Institutional Securities and Wealth Management business segment carries significant credit risk. The inability of a borrower to meet its financial obligations could notably impact the bank\u2019s financial results.<\/li>\n<\/ul>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Morgan Stanley\u2019s A1 credit rating from Moody\u2019s reflects a low credit risk. This aligns with my investment approach, which <strong>prioritizes<\/strong> <strong>capital preservation <\/strong>above all else.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Reducing Portfolio Risk When Investing in Morgan Stanley for Improved Investment Outcomes<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">In a long-term investment portfolio, I suggest allocating a higher proportion to Bank of America and JPMorgan compared to Morgan Stanley, due to their lower risk levels. This is evidenced by their significantly lower Payout Ratio, lower Valuations, and higher Profitability.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">As mentioned, I suggest limiting the Morgan Stanley position to <strong>a<\/strong> <strong>maximum of 3% <\/strong>of your overall investment portfolio. This allocation strategy reduces company-specific concentration risk, thus increasing the probability of obtaining positive investment outcomes.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Additionally, I suggest a <strong>long-term investment approach<\/strong>, aiming for a minimum holding period of seven years to benefit from the company\u2019s steadily increasing dividend payments. This strategy can help you to steadily increase your wealth.<\/p>\n<h3 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Risk Analysis &#8211; Ares Capital<\/strong><\/h3>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Key Risk Factors for Ares Capital Investors to Consider<\/strong><\/p>\n<ul class=\"paywall-full-content invisible no-summary-bullets\">\n<li> <strong>Volatile Markets: <\/strong>Market Volatility can hinder Ares Capital\u2019s ability to raise equity capital or debt capital, and negatively affect the valuations of the company\u2019s investments, thus impacting its financial results.<\/li>\n<li> <strong>Interest Rates Fluctuations:<\/strong> Changes in interest rates can have a significant negative impact on Ares Capital\u2019s investment performance and the company\u2019s financial results.<\/li>\n<li> <strong>Risks from Non-Public Companies:<\/strong> Ares Capital invests in private companies, whose fair value can be challenging to determine accurately. This presents an additional risk factor for investors.<\/li>\n<\/ul>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Reducing Portfolio Risk When Investing in Ares Capital for Improved Investment Outcomes<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Ares Capital is an attractive choice to boost the Weighted Average Dividend Yield of your investment portfolio. However, due to the risk factors previously discussed, I suggest limiting the proportion of Ares Capital to a <strong>maximum of 4%<\/strong> of your overall portfolio to reduce its company-specific concentration risk. This approach aims to increase the likelihood of realizing an attractive Total Return for your investment portfolio.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Similar to investing in Morgan Stanley, I suggest a <strong>long-term investment strategy<\/strong>, with a minimum intended holding period of at least 7 years. This strategy allows you to benefit from the attractive and continuously raising dividend payments of the company.<\/p>\n<h3 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Maximizing Investor Benefits from Investing in Morgan Stanley and Ares Capital<\/strong><\/h3>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I am confident that investing in Morgan Stanley and Ares Capital will be most beneficial for investors when both are included in a well-balanced and broadly diversified investment portfolio with a reduced risk level (as suggested, allocations should not exceed 3% and 4% of your overall portfolio).<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Such a portfolio should not only include high dividend yield companies (like Morgan Stanley and Ares Capital), but also companies with a focus on dividend growth (here you can find an article on the 10 dividend growth companies that I currently consider to be attractive).<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">On Seeking Alpha, I am constructing and detailing a well-balanced portfolio that includes both high dividend yield and dividend growth companies with a broad diversification:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The Construction Of The Dividend Income Accelerator Portfolio<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">The portfolio\u2019s investment approach offers substantial benefits for investors, including the generation of extra income, and a high probability of attractive investment outcomes, to which its broad diversification and reduced risk level contribute significantly.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Such a mix of high dividend yield and dividend growth companies is further appealing for investors, since it not only offers immediate income, but also the potential for annual increases. Through its additional goal of obtaining an attractive Total Return, it contributes to maximizing investor benefits when investing over the long term.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Why Ares Capital Has Been Incorporated into The Dividend Income Accelerator Portfolio<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I have recently added Ares Capital to The Dividend Income Accelerator Portfolio. I\u2019ve done this as I&#8217;m convinced that the company aligns strongly with the portfolio\u2019s investment approach of combining dividend income and dividend growth:<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">2 Stocks Yielding Up To 12%: The Latest Acquisitions For The Dividend Income Accelerator Portfolio<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Why Morgan Stanley is a Strong Candidate for Inclusion into The Dividend Income Accelerator Portfolio<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Morgan Stanley is on my watchlist for potential inclusion into The Dividend Income Accelerator Portfolio in the coming weeks. I believe that the company aligns with the portfolio\u2019s investment approach.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Key factors that underscore this belief are its financial health (A1 credit rating from Moody\u2019s), and competitive advantages, as well as its mix of dividend income (Dividend Yield [FWD] of 4.24%) with dividend growth (5 Year Dividend Growth Rate [CAGR] of 24.19%), in addition to having a relatively attractive Payout Ratio (55.11%).<\/p>\n<h2 class=\"paywall-full-content invisible no-summary-bullets\"><strong>Conclusion<\/strong><\/h2>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Conducting a Risk Analysis: The Key to Lowering Portfolio Risk and Enhancing Investment Outcomes<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Effectively combining high dividend yield and dividend growth companies is crucial when building a solid and robust dividend portfolio with a reduced risk level. Reducing the portfolio\u2019s risk level is a key factor, since it augments the likelihood of successful investment results.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">By using the following example, I would like to further illustrate the importance of reducing risks when investing: I would not classify acquiring a stock as an investment if it only offers a 1% chance of attractive investment outcomes (for example, due to the high amount of risk factors that comes attached to the investment), even with a possible (but due to the risk factors highly unlikely) annual return of 20%.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">My investment approach (reflected though The Dividend Income Accelerator Portfolio) is characterized through the preservation of capital above all, while providing you with a high probability of attractive investment outcomes when investing over the long term.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Why Morgan Stanley and Ares Capital Are Currently Attractive Investment Choices<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I consider both Morgan Stanley and Ares Capital to be attractive for investors, since both provide a high probability of achieving an attractive Total Return, in addition to blending dividend income and dividend growth.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I have already incorporated Ares Capital into The Dividend Income Accelerator Portfolio and am planning to add Morgan Stanley within the next weeks.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>The Importance of Limiting Individual Investments Relative to Your Total Portfolio<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">I suggest incorporating Morgan Stanley and Ares Capital into a carefully diversified dividend portfolio with a reduced risk level, limiting their allocation to a maximum of 3% and 4% of the overall portfolio, respectively. This strategy allows you the generation of extra income while maintaining a high likelihood of achieving an attractive Total Return for your overall portfolio.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>The Benefits of High Dividend Yield Companies for You as an Investor<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">High dividend yield companies provide investors with diverse advantages: they can contribute significantly to reducing portfolio volatility, highlighting the potential for investors to be rewarded even in times of a stock market decline. This can help you and your investment portfolio to keep on track in challenging times.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Through the generation of this supplementary income, you will have extra money available that you can use for leisure activities: visiting a sport event or a concert you have long envisioned, a weekend trip to a city you have always wished to visit, or any other activity you have in mind.<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/seekingalpha.com\/article\/4654066-if-i-could-only-buy-2-high-dividend-yield-companies-in-november-2023-one-yields-9-77-percent?source=feed_all_articles\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investment Thesis In times of high market uncertainty, the strategic incorporation of high dividend yield companies into your investment portfolio can be an adequate and necessary step towards the construction of a better balanced and more diversified investment portfolio. In this article, I will introduce you to two high dividend paying companies that blend dividend income with dividend growth, can help you to increase the extra income your portfolio generates via dividend payments, and can augment the probability of your dividend portfolio producing positive results when investing over the long term. Before I dive deeper into the characteristics of these<\/p>\n","protected":false},"author":1,"featured_media":10801,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42],"tags":[],"class_list":["post-10800","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>If I Could Only Buy 2 High Dividend Yield Companies In November 2023 \u2013 One Yields 9.77% | ConnectWithFund<\/title>\n<meta name=\"description\" content=\"Investment Thesis In times of high market uncertainty, the strategic incorporation of high dividend yield companies into your investment portfolio can be\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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