By Bret Jensen
Income investors have had to be nimble over the last few years due to the ultra-low interest rate environment courtesy of the Federal Reserve. Many intrepid yield investors have learned to get outside their comfort zones and pick up shares outside the usual dividend paying sectors (Telecom, Pharma, Utilities & Consumer Staples) of the market.
I think this mindset has served and will continue to serve income investors well as the low interest rate environment is likely be in place for the foreseeable future. Putting on my "creative" hat, I have come up with some dividend picks from nontraditional sectors. All selections look attractive on both a yield and value perspective. In addition, their stocks all go for under $10 a share.
My highest risk/reward play in the income space is Eagle Rock Energy Partners (EROC). This energy partnership has traditionally consisted of both an upstream and a midstream business. However, the company recently announced it is selling the midstream part of its business to Regency Energy Partners (RGP) for $1.325B.