Just released: February’s lower-risk, high-yield stock recommendation [PREMIUM PICKS]

Ice ideas will usually offer a steadier flow of income and is likely to be a slower-moving but more stable investment.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Ice cube tray filled with ice cubes and three loose ice cubes against dark wood.

Image source: Getty Images.

Premium content from Motley Fool Share Advisor UK

Investors with a more conservative desire might find the Ice style appealing. By focusing on businesses that have shown consistent financial performance and growing dividends, we seek to beat the market with a mix of income and steadily rising share prices. We consider this to be a lower-risk investing strategy than Fire, but company and industry specific risks mean diversification remains important.

Ice investing can generate large, short-term gains on occasion, but we’re primarily seeking steady gains over time, and shallower declines during wider stock market falls. These qualities are most commonly found in established firms, but the Ice approach does not focus exclusively on large companies. We often see ample opportunity to invest in medium-sized companies, with strong niche positions in their industry and the ability to grow their dividends for years to come.

“The company also commands a lower valuation than other businesses that have technological innovation as a cornerstone of their strategies – while the long-term dividend track record might offer assurance to Ice-style investors.”

Mark Stones, Share Advisor

February’s Ice recommendation:

Redacted

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