This 7%+ Dividend Isn’t Your Typical Utility Investment

This 7%+ Dividend Isn’t Your Typical Utility Investment

I was doing some investment research yesterday, and found myself sifting through a list of the best-performing investments of the 2022 so far. Perhaps unsurprisingly, they’re all incredibly aggressive instruments – arcane cryptocurrencies, 3X leveraged oil ETFs and the like – that rely on luck as much as anything else.

Anyone looking for proof that past performance is no guarantee of future returns, look no further than that list.

A single Millennial with just a few thousand bucks in their account may not be afraid of these incredibly risky bets. But that’s just because they haven’t learned their lessons yet.  Veteran investors know that for every trade generating instant gains … there are hundreds of others that cause instant regret.

A more successful approach is to focus on long-term income, protecting your hard-earned savings and generating enough cash to live off. Not only does this strategy avoid the very real risk of bankrupting you overnight, it comes with far less stress, too!

My favorite utility stock right now is a prime example of the kind of stocks that may not be as flashy as the latest Wall Street fad. But it makes up for it by following my three simple rules for investing…

Consistency, consistency and consistency.

That stock is Consolidated Edison (ED).

ConEd Powers Your Portfolio with Long-Term Dividends

Many of you may already know ConEd, and its history as a reliable dividend payer. But humor me and keep reading … because later, we’ll discuss a related investment with dividends that are more than double what this stock has to offer!

For those who may not be as familiar, here’s why ConEd is a case study in consistency:

  • The stock has paid dividends dating back to 1823. That’s coming up on two full centuries of payouts, which is a simply staggering feat.
  • Those dividends have grown steadily. Specifically, ConEd is a “Dividend Aristocrat” that has raised its payout at least once per year for the last 48 consecutive years.
  • The cash flow supporting that dividend is rock solid. ConEd is effectively a legalized monopoly thanks to geographic dominance in a highly regulated industry with high costs for new entrants. It’s the definition of a stock with a wide moat and no risk of disruption.

Small wonder that, given this track record, ConEd has risen 16%+ this year in a down market. That shows investors who are participating in the flight to quality are seeking out stocks like ED right now in a “risk off” environment.

Snag 130% More Yield Without Sacrificing Reliability

In many ways, ConEd is a great example of the kind of stocks you want in an income portfolio. And if you bought it a few years back at a good cost basis and have reaped the intervening years of dividend growth … good for you!

But in the current environment, in a challenging stock market where red-hot inflation is eroding your buying power, ConEd and it’s rather modest yield of just 3.2% doesn’t really make the cut.

Think of it this way: If you’re used to living on a six-figure salary, you’re going to need more than $3 million in this stock to generate enough cash!

If you have that much dough sitting idle in your account, you can live with a stock like ED, or conventional big-name blue chip stocks that generate even less.

The rest of us need to look past conventional, crowded trades like these and reach for the next level of income-generating investments instead.

I’m talking about closed-end funds that offer significantly higher yield – more than 2X the yield, in fact.

One of my favorite picks among closed-end funds right now is the Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund (MFD). The name is a mouthful, but roughly two-thirds of the fund’s portfolio is in high yield utility stocks similar to ConEd. And year-to-date it, too, has benefited from the flight to quality on Wall Street as it has gained nearly 12%.

But the real appeal for income-oriented investors is the stunning yield of 7.6%.

To be 100% clear, closed-end funds like MFD are not the same as your garden variety index funds and ETFs. As vivid proof of that, consider that the largest utilities sector fund is the roughly $15 billion Utilities Select Sector SPDR ETF (XLU)… and it yields even LESS than ConEd at a meager 2.5%!

How to generate 7% yield with certainty 

It’s tempting to feel like 3.2% is “enough” yield. After all, the typical stock in the S&P 500 only yields a mere 1.2% and many tight-fisted companies stockpiling their cash instead of paying back their shareholders.

But as I mentioned, you need more than $3 million to make that kind of payout structure work for your budget. So you simply can’t settle for the same old stocks offering the same old yields.

That’s where the Contrarian Income Report comes in – a publication dedicated to helping you retire comfortably on 7%+ dividends that are paid consistently, month after month.

And you won’t just get a pathway to higher yield via a list of tickers every few weeks. You’ll get in-depth analysis about the “how” and the “why” behind each pick, with comprehensive recommendations that allow you to invest with confidence – no matter what’s happening on Wall Street.

If you sign up risk-free today, you’ll get the latest three high-yield picks including:

  • A well-hedged 8.1% payer in one of the most in-demand sectors right now,
  • The brainchild of one of the top fund managers on the planet that’s throwing off an amazing 7.8% yield,
  • And a rock-steady 6.3% dividend whose managers own significant stakes – meaning their interests align with yours.

Don’t settle for the same old stocks or sector ETFs. Click here tap into 7%+ yields from monthly dividend payers—right now!