A friend of mine wants me to be her "broker". I don't mind doing this for her, as I am looking for steady income (other than what I'm making now). Whether she has high risk tolerance or not is unknown right now, but I was thinking about suggesting high dividend yield companies to her. Also stocks that have low beta, that way if/when markets to take a hit, she's getting some return on her investments.
What do you think? Ill welcome any suggestions or advice you have.
I'm a.ssuming you mean financial advisor? If that's the case, unless you're licensed I wouldn't do it. Too many things could go wrong as far as legalities go.
Low risk, high yielding stocks...go for utilities. ED is one of my favorites. It already had a great run during the market weakness in the past month or so. 3.8% div and utilities are safety stocks.
Some other stocks that will hold up well through market weakness are KO, PEP, DPS all with solid divs around 3%. Also tobacco stocks PM, LO, MO, RAI. Typically the whole consumer/non-cyclical sector is good with strong divs.
I like MCD a lot as well as most restaurant stocks. And MCD has had a nice pullback too. Only problem is it has a lot of exposure to Europe so it's not as safe.