Low Volatility Yield Stocks

Looking where to park fixed income cash for the medium term?  Low volatility stocks like MICs are one option.  Stocks like Timbercreek Mortgage Investment (Stock Symbol: TMC-T) are pure yield plays with a low volatility.  Google finance reports a small correlation to the market, or "beta" of 0.07.  A stock that perfectly tracks the market has beta of 1.00, and a stock that is more volatile than the market has a beta great than 1.00, so you get the picture from this 5 year chart.















The current yield is over 7% with monthly distributions - great for registered accounts (RRSP, TFSA, RESP) since they are taxed primarily as interest.  Buy it on a dip to avoid any of the short term drops that can occur.

Lastly, to see what portfolio managers are saying about Timbercreek, you betta check out compiled BNN guest opinions here: Stockchase link.

PS - that late 2008 dip was obviously short lived ... but if you do not have the stomach for the market stay tuned for other high yield investments that are not publicly traded and can have even lower volatility.