My Advice: Park These 9%+ Paying “Convertibles” in Your Portfolio Now

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My Advice: Park These 9%+ Paying “Convertibles” in Your Portfolio Now

Let’s talk about convertibles for a second—but not the car with a removable top that everyone thinks of when they hear that word: I’m talking about convertible bonds.

I know, a bit less flashy, right? The name causes most folks’ eyes to glaze over, but there is a (very) exciting part to this convertible-bond story: massive dividend yields. And I’m not talking the type of so-called “high” yields you get on regular stocks (3% or 4%). Or even corporate bonds, many of which pay out in the 6% to 7% range these days.

I’m talking really high yields here. Like 12% yields.… Read more

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Your Retirement Playbook: How Much You Need + 3 Big Dividends to Get There

Let’s go ahead and use the quickest, most reliable strategy I know of to kickstart a reliable 7% income stream that rolls our way every month.

My specialty is writing about stocks, bonds and closed-end funds (CEFs), but all of these are really a means to the end of achieving financial independence. What really matters is how much income you can pull out of these investments to fund your lifestyle.

The answer is a lot more than you might imagine. I’m going to show you how to pull 7% out of three funds that pay monthly and offer diversified income streams based on bonds issued by large, well-established companies (think of this portfolio as being like a big commercial bank, but one diversified across the world).… Read more

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It’s a Bond. It’s a Stock. It’s Both (and It Pays Huge 7% Dividends)

Stocks or bonds? Why choose when:

  1. Stocks pay just 1.5%
  2. Bonds pay just 1.3%, yet
  3. There are little-known hybrid instruments yielding up to 7.9%!

These vehicles aren’t risky. They just happen to be favorites of Wall Street insiders who don’t want income investors like us crowding their favorite trades.

Unfortunately for them, we are not going to apologize for this article in advance. It’s time for us to discuss how to take the 1.5% yield from the S&P 500, the 1.3% yield from 10-year Treasuries—throw each in the trash—and instead type in the “convertible bond” tickers we’re not supposed to know about.… Read more

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