6 buy-rated double-digit yielders

If you're looking for big yields and are willing to stretch out your risk profile a bit, these are well worth a look.

By MoneyShow.com Jul 16, 2012 10:39AM

By Bryan Perry, Cash Machine


1. BGC Partners (BGCP
Yield 10.81% 
With all the derivative trading by global fund managers to protect assets, BGCP should post a good second-quarter report. The company's main business is to act as a clearinghouse, and it carries little overnight exposure.


2. Credit Suisse High Yield Bond Fund (DHY)
Yield 10.39% 
High-yield corporate bonds remain very attractive in the current landscape of low interest rates, low inflation, and moderate economic growth.


3. Horizon Technology Finance Corporation (HRZN)
Yield 11.54% 
The BDC sector has been displaying excellent relative strength. HRZN is a more thinly traded stock, and when a big seller shows up, the shares come under unwarranted pressure. But that provides for a good buying opportunity for us. 


4. GAMCO Global Gold, Natural Resources & Income Trust (GGN)
Yield 12.31%
All the uncertainty surrounding the euro has gold prices back on the way up. Mining stocks typically lag gold prices and then move in a slingshot fashion higher as they play catch-up.


5. E-TRACS 2x Leveraged Long Alerian MLP Infrastructure Index (MLPL)
Yield 12.20% 
Oil and gas prices have started to level out, and this exchange traded note now trades ten points off its high and sports a huge yield.


6. Newcastle Investment (NCT)
Yield 12.66%  
The company continues to acquire mortgage servicing contracts that will prove very accretive to earnings in the months ahead. Management just declared the latest 20-cent dividend. Shares should rise into that date.


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