17 Best High-Yield Investments [Highest Return Investments in 2024]

Feeling stuck with limited income streams? Ready to make your money work harder for you?

You’re in the right place. In this article, I’ll walk you through the best high yield investments for generating substantial cash flow and providing you with a steady stream of passive income.

From dividend stocks and real estate to peer-to-peer lending and the best passive income apps, we’ll delve into a wide range of high-yield options that suit various risk appetites and investment goals.

17 Best High-Yield Investments in 2024

Let’s get to it! These are some of the best high-yield investments out there right now. You’ll find options suitable for just about any account size and risk tolerance level.

1. Bonds

• Risk level: Low
• Expected returns: Low
• Who it’s good for: Income Investors, Risk-averse Investors, Retirees

Bonds are like loans you make to governments, municipalities, or companies. In return, these parties pay interest — plus, you get the full amount back when the bond matures.

Bonds are one of the best high yield investments for folks who prefer steady income and want to play it safe with their investments. So they’re deal for retirees or anyone who doesn’t like taking big risks.

Government and municipal bonds usually have to be purchased from their respective governments and municipalities. But for corporate bonds, I’d suggest checking out M1 Finance, which offers a wide range of corporate bond funds and ETFs. You can set your allocation to these funds in your M1 “pie,” and M1 will automate your investments and allocation to bonds for you.

2. Certificates of Deposit

• Risk level: Low
• Expected returns: Low
• Who it’s good for: Risk-averse Investors, Prospective Homebuyers

Certificates of Deposit (CDs) are time deposits offered by banks and credit unions. They provide a fixed interest rate for a specified period, and your principal amount is also returned at maturity.

If you don’t want to invest in the stock market, but still want to earn returns, CDs are a great pick that lets you save and grow your money.

3. High-Yield Savings Accounts

• Risk level: Low
• Expected returns: Low
• Who it’s good for: Anyone with Cash Savings

High-Yield Savings Accounts are like turbocharged versions of regular savings accounts.

They give you the chance to earn some interest on your hard-earned cash, which means your money grows faster than if you kept it under your mattress … or in a “regular” checking account.

While regular savings accounts with the big banks pay next to nothing, high-yield savings from firms like M1 Finance can yield impressive APY rates…

The best part? Unlike a CD, you still have easy access to your funds whenever you need them.

4. Money Market Accounts

• Risk level: Low
• Expected returns: Low
• Who it’s good for: Very Low Risk Investors

While they’re not the highest of the highest yield investments, it’s worth mentioning money market accounts (MMAs). Why? Compared to the average savings account, they’re fairly high-yield.

Think of money market accounts as savings accounts where you hire your bank to invest in bonds for you. When you open a Money Market Account, your bank or credit union uses your funds to invest in short-term, low-risk securities like government bonds, certificates of deposit, or Treasury bills.

5. Dividend ETFs

• Risk level: Low
• Expected returns: 8-10%
• Who it’s good for: Income Investors, Long-term Investors

When you invest in a dividend ETF, you’re actually buying shares of a fund that holds a bunch of different stocks from various companies that are known for dishing out juicy dividends.

Dividend ETFs are one of the best high-yield investments because they offer you a diversified portfolio without the need to individually pick and choose stocks. Plus, they tend to focus on companies that have a history of regularly paying out dividends, which can bring you a consistent income stream.

The Schwab US Dividend Equity ETF (NYSE: SCHD), for example, currently yields about 3.6%. So if you invested $10,000 dollars into it, you’d receive about $360 dollars every year in dividend payments.

Our pick for dividend ETFs? M1 Finance, where you get the benefits of Dividend ETFs while enjoying the convenience of a user-friendly platform.  

6. Index Funds

• Risk level: Low
• Expected returns: 8-10%
• Who it’s good for: Long-term Investors, Passive Investors, Most Investors

Index funds simply follow a specific market index, like the S&P 500, which means you get a piece of the action in a whole bunch of different companies.

The beauty of index funds is that they give you broad exposure to the market without the stress of picking individual stocks. Instead of trying to outsmart the market, you’re essentially saying, “Hey, I’ll just ride along with everyone else and enjoy the overall growth.”

Since Index Funds aren’t actively managed by a team of stock-picking gurus, they typically have lower fees compared to other funds.

If you don’t own index funds yet, these could be one of your best investments for 2023.

My favorite index fund? Vanguard’s Total World Stock Market Fund (NYSE: VT), which gives you exposure not just to the US market but to the entire world! You don’t have to worry about how to get internation exposure outside of the US … VT does it for you with about a 60/40 split between the North America and abroad:

I invest in VT using M1 Finance, where they make it easy to include index funds as part of your portfolio.

7. Mutual Funds

• Risk level: Low
• Expected returns: 8-12%
• Who it’s good for: Passive Investors, Investors Seeking Active Managers

Mutual Funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets. They’re managed by professional fund managers who live and breathe investments.

As with index funds, you get the benefit of instant diversification here, because mutual funds will hold multiple positions in various companies, industries, and even different types of assets.

However, these funds charge much higher fees than index funds. And they don’t always outperform them.

To make sure you’re getting your money’s worth, it’s good to do your research and pick a fund with excellent management, clear strategy, and a history of solid performance.

For example, Brian Yacktman’s YCG Investments (MUTF: YCGEX) invests in global champions with strong network effects who are thought to be “toll takers” along the road to rising global wealth:  

My favorite mutual fund platform? Fidelity. You can easily purchase funds, see their rating, and check out their past performance:

8. Dividend Stocks

• Risk level: Moderate
• Expected returns: 8-12%
• Who it’s good for: Individual Stock Pickers, Long Term Investors, Fundamental Investors

Dividend stocks are shares of companies that are extra generous with their profits. Instead of just holding onto all the cash, they distribute a portion of it as dividends to their beloved shareholders.

Picture this: you invest in a dividend stock, and boom, you become part-owner of a company! And guess what? As a shareholder, you get a sweet piece of the pie. Regularly. These companies share their wealth with you in the form of those lovely dividend payments.

Some popular examples:

• Pepsi (NYSE: PEP) – yields 2.6%
• Johnson & Johnson (NYSE: JNJ) – yields 2.96%
• JP Morgan Chase (NYSE: JPM) – yields 2.98%

I invest in dividend stocks with M1 Finance, because I love the convenience of their “pie slices” feature and how it helps visualize your investments. Plus, you can buy fractional shares.

9. Value Stocks

• Risk level: Moderate
• Expected returns: 8-12%
• Who it’s good for: Individual Stock Pickers, Long Term Investors, Fundamental Investors

As the name implies, value stocks are shares of companies that are believed to be undervalued. How do we know that? Well, it’s all thanks to fundamental analysis.

Finding value stocks requires a bit of research and strategy. To get the best return on investment, you want to dig deep, analyze the company’s financials, understand its competitive advantage, and assess its growth prospects.

Value stocks can also require extreme patience and emotional control if you want to get the best return on investment.

So if you have limited time on your hands or limited knowledge of fundamentals, picking individual value stocks might not be one of your best investments for 2023. No problem, you’ll do great sticking to some of the index funds mentioned earlier.

When it comes to investing in value stocks, I once again recommend M1 Finance thanks to its user-friendly platform.

10. Small Cap Stocks

• Risk level: High
• Expected returns: High
• Who it’s good for: Aggressive Investors, Growth-oriented Investors, Experienced Investors

Small cap stocks typically refer to stocks with a market cap ranging from a few hundred million to a few billion dollars.

Investing in small cap stocks can be one of the highest return investments, because these small companies are often ignored by institutions and hedge funds who have multiple billions of dollars to invest. Still, it’s important to do thorough research and diversify your portfolio.

I invest in some small caps using M1 Finance and Robinhood, but some of these companies are so small they’re not even offered on these brokerages.

I like Fidelity for small caps because you can find most small-micro cap stocks and even OTC (over the counter) stocks.

11. Real Estate

• Risk level: Moderate
• Expected returns: Moderate to High
• Who it’s good for: Long-term Investors, Passive Income Seekers

Real estate investors purchase properties with the intention of generating income through rental payments or capital appreciation.

Real estate can provide a bunch of benefits, like:

• Stable cash flow
• Potential tax benefits
• Hedge against inflation

Real estate investments can range from rental properties to commercial buildings, and there are multiple strategies to consider, like buy-and-hold, fix-and-flip, or real estate investment trusts (REITs).

For investors who want turnkey real estate, Doorvest can be a great option. They source, renovate, lease, and manage your property for you … so you can minimize your cost, time, and risk.

12. Real Estate Investment Trusts (REITs)

• Risk level: Moderate
• Expected returns: Moderate
• Who it’s good for: Income Investors, Diversification Seekers

REITs are companies that own and take care of properties that make money, like apartments, offices, and shopping centers.

The cool thing is, you can invest in these companies and enjoy the benefits of real estate without the hassle of being a landlord.

Fundrise offers a type of private REIT, but it’s also so much more … it’s an online platform that allows you to purchase a portion of real estate interests. They’ve generated noteworthy returns over the years, all without you having to worry about tenants or closing on properties:

Plus, Fundrise makes dividend payments to investors in cash. You can even choose to automatically reinvest dividends back into your Fundrise account via their dividend reinvestment program.

13. Farmland

• Risk level: Moderate to High
• Expected returns: Moderate to High
• Who it’s good for: Long-term Investors

Investing in farmland is all about getting agricultural land and using it to grow crops, raise animals, or renting it out to farmers.

The best part? You can enjoy a steady income, watch your investment grow, and be a part of the thriving world of agriculture.

However, not everyone is able to run out and buy one hundred acres of farmland. That’s where AcreTrader comes in.

AcreTrader provides accredited investors with access to pre-vetted U.S. farmland investments starting from $10,000.

The platform offers investments in a variety of crops, including:

• Row crops
• Permanent crops
• Timberland

Since they pay you annual rent payments in the form of dividends, AcreTrader can also be one of the highest yield investments.

14. Crowdfunded Real Estate

• Risk level: Low to Moderate
• Expected returns: Low to Moderate
• Who it’s good for: Investors Seeking Real Estate Exposure, Passive Real Estate Investors

Crowdfunded real estate platforms bring people together to pool their money and dive into exciting opportunities like residential or commercial properties, development projects, and even real estate loans.

Best of all, it doesn’t take a lot of cash.

Whether you’re an accredited investor looking for high-end options (check out YieldStreet) or just starting out (give Fundrise a shot), there’s something for everyone.

Just look at some of the multi-family properties you can get exposure to by investing with YieldStreet:

15. Fine Art

• Risk level: Moderate
• Expected returns: Moderate to High (Varies significantly)
• Who it’s good for: High-net-worth Individuals, Anyone looking to diversify

If you’re an art enthusiast, a collector, or just a high-net-worth individual wondering where to invest in 2024, investing in fine art might be your thing.

If you want access to a world of art investing opportunities, check out Masterworks. They offer a unique platform that allows you to invest in shares of iconic artworks, even if you don’t have a massive art collection or a Picasso hanging in your living room.

With Masterworks, you can diversify your portfolio by owning a fraction of a valuable artwork alongside other like-minded investors.

16. Private Credit

• Risk level: Moderate to High
• Expected returns: Moderate to High
• Who it’s good for: Accredited Investors, Fixed Income Seekers

With private credit, you’re essentially the cool lender who provides loans or investments to companies or individuals that can’t go to the regular banks for financing.

Investing in private credit can actually give you some pretty attractive returns, even better than other fixed-income options.

But as with anything, there are risks involved. Borrowers might not have the best creditworthiness, and the investments themselves can be a bit hard to sell quickly if you need to get your money back fast. So it’s important to know what you’re getting into.

Percent is one of the leading platforms to invest.

They’ve got a solid platform where accredited investors can dive into private credit investments. Just remember to do your due diligence and make sure everything aligns with your investment goals.

17. Private Companies

• Risk level: High
• Expected returns: High
• Who it’s good for: Accredited Investors, Venture Capitalists

Investing in private companies can be a rollercoaster of high risk and high rewards. Since these companies aren’t publicly traded, it means you won’t be able to easily buy or sell their stocks like you would with big-name companies.

That’s why it’s important to do your homework, evaluate the risks, and make sure you’re comfortable with the uncertainties that come with private companies. That said, these can be among the highest-return investments available.  

So if you’re itching to dive into the world of private companies, you should definitely check out Equitybee:

They’ve got a platform where you can explore and invest in private companies. The only downside is that it’s only available for accredited investors at this time.

Final Word: Best High Yield Investments

When it comes to seeking high yield investments, it’s essential to carefully evaluate the risks and potential returns associated with each option.

Remember, high yield investments can come with higher risks, so it’s crucial to diversify your portfolio, do thorough research, and understand the specific characteristics and potential drawbacks of each investment option.

It’s always recommended to consult with a financial advisor who can provide personalized guidance based on your financial goals, risk tolerance, and investment horizon.

Happy investing!

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