How to Earn 10% Yields (Forever) From Safe Bonds

Our Archive

Search completed

No safe bond pays 10% itself, of course. But it is possible to generate double-digit yields from a portfolio of secure bonds.

The secret is similar to successful dividend investing. Why buy a stock and be content pocketing “only its dividend” when you can have the payout with price upside to boot?

Most income investors are even less thoughtful when they purchase bonds. They fixate on the coupon rate (which these days they are inevitably disappointed with.) They watch their bonds weigh down their entire portfolio, muttering to themselves “at least they are safe.”

Well, sure. But they can be both safe and profitable.…
Read more

Read More

You’re not the only one worried about high stock prices.

The lurking (and perhaps overdue) bear has other income investors worried, too. So let’s talk about the best buys for those of you worried about a stock market pullback of 10%, or 15%, or more.

We’ll start with some stalwarts from our Contrarian Income Report portfolio that weathered the last storm. Ironically (and probably fittingly) it happened off the bat – we launched our service, and the S&P 500 promptly dropped 10%!

No problem for us, though. In fact, subscribers who focused on their own holdings rather than the financial news may have missed the broader carnage altogether.…
Read more

Read More

Is there a bond bubble? There’s certainly more froth than not, with investors recklessly reaching for the riskiest of yields.

But there’s one last 10% dividend on the board worthy of our consideration. It’s available thanks to investors’ misunderstanding (and laziness) – we’ll discuss details in a minute.

But first, let’s review three key rules that will help us navigate this budding bond bubble.

Rule #1: Maximize Your Upside

Our favorite second-level thinker Howard Marks noted in an op-ed for Barron’s that Netflix (NFLX) bond buyers – who recently scooped up €1.3 billion of Eurobonds paying just 3.625% – might have exposed themselves to significant downside without much upside.…
Read more

Read More

Today I’m going to show you how to get a livable income stream from a $300,000 nest egg—while growing your savings at the same time.

Sounds impossible, right?

Wrong.

What’s more, we’re going to pull it off using just six funds. When we’re done, we’ll end up with a simple, diversified portfolio that throws off a nice, steady 7.9% dividend yield!

And if you’re worried that this outsized yield could come at the cost of a weak total return, don’t be, because these funds have delivered 12% per year over the past decade.

Before I get into these six funds, let me show you what numbers like these can mean for you: if we start with an upfront investment of $305,000 in this portfolio and leave it alone for 10 years, we can expect our capital to explode to nearly $1 million in a decade.…
Read more

Read More

Categories