Fade the Market Roller Coaster With These Cool 6.7%-7.5% Yields

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“America’s retirement fund” is looking awfully shaky. Income investors should consider replacing the over-owned S&P 500 index fund with these underappreciated yields up to 7.5%.

The S&P 500 has face-planted right out of 2022’s starting gate, flirting with a correction (that’s a decline of 10% or more) less than a month into the year.

If you’re retired, or thinking about retirement, these drawbacks are costly. They can erase years of hard work in a few bad trading sessions.

This is why we contrarians, who focus on cash flow, lean on “preferred” stocks, instead. These are special classes of shares issued by the same blue-chip firms in the S&P 500.… Read more

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Preferred stocks are hands-down the most ignored investments in this crisis. That’s too bad, because they’re one of the best ways to get a high, safe income stream. And you can supercharge their dividends by purchasing these “dividend unicorns” through preferred-stock closed-end funds.

Before I go further, let me say that if the term “preferred shares” has your eyes glazing over, I get it: most people feel these investments are too obscure to bother with. But stick with me, because preferreds are actually perfectly suited to today’s contradictory economy, with its high numbers of bankruptcies and a rising stock market.… Read more

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As investors near retirement, they tend to favor bonds, which provide income and less drama than stocks. However, less drama means less potential upside. With retirees living longer than ever before—which means much more time for inflation to eat away at your nest egg’s purchasing power—it’s important to not go too conservative too early in life. And fortunately, today even 65 or 70 may be too early!

One suggested solution for our long life expectancy “problem” is to stay with stocks longer. But stocks can go down as well as up, and a big pullback can inflict permanent damage on a portfolio.… Read more

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