Are you someone who is always searching for new ways to generate income? Even though inflation may be decreasing, the cost-of-living crisis is still a reality for many. One way to supplement your income is by investing in good dividend stocks with high yields.
One interesting option to consider is CVC Income & Growth (LSE: CVCG), an investment trust listed on the stock market. Managed by CVC, a private equity and debt manager, this trust focuses on generating income for shareholders while also aiming to grow the trust’s value over time. Currently, the trust offers a dividend yield of 9%, which is quite attractive for dividend investors.
CVC generates its income by providing loans and credit to private companies, especially those that may struggle to secure traditional lending from major banks. With a focus on Europe, the trust avoids complicated investments in other parts of the world.
The trust has shown impressive growth, with a 12% increase in its stock price over the past year. It maintains a diversified sector exposure, with healthcare and beverage & food as the largest sectors. Tech has a minimal weighting, which could be seen as a positive based on future sector performance expectations.
One potential risk of investing in a trust like CVC is the possibility of default on debt by the companies it is involved with. However, CVC mostly deals in senior secured loans, which means there is collateral attached to the loans in case of default.
Overall, CVC Income & Growth presents a promising option for investors seeking income opportunities. Consider adding it to your portfolio if you have some extra cash on hand.
This article was originally published on The Motley Fool UK.