These “Preferred” Blue-Chip Stocks Yield Up to 6.9%

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Preferred stocks are the little-known answer to the dividend question:

How do I juice meaningful 5% to 6% yields from my favorite blue-chip stocks?

“Common” blue chips stocks usually don’t pay 5% to 6%. Heck, the S&P 500’s current yield, at just 1.3%, is its lowest in decades.

But we can consider the exact same 505 companies in the popular index—names like JPMorgan Chase (JPM), Broadcom (AVGO) and NextEra Energy (NEE)—and find yields from 4.2% to 6.9%.

If we’re talking about a million dollar retirement portfolio, this is the difference between $13,000 in annual dividend income and $42,000. Or, better yet, $69,000 per year with my top recommendation.… Read more

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There’s an opportunity unfolding for us in one corner of the closed-end fund (CEF) market, and we can tap it for 7.5% dividends and price upside, too.

That opportunity is in CEFs that hold preferred shares. And it includes a CEF called the John Hancock Preferred Income Fund II (HPF), which not only pays a 7.5% dividend but is positioned to grow its payout. So every $100,000 you put into HPF gets you $625 a month in income, versus $119 a month you’d get from the typical S&P 500 stock. And that’s just to start.

If you’re unfamiliar with preferreds, they’re like the common stocks most people buy except they pay higher dividends (preferreds typically pay 4% or more, versus the average sub-2% yield on common stocks).… Read more

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Is this a quick (buyable) blip? Or the next bear market?

While the Wall Street suits guess away, we can do better than the buy and hope crowd. After all, why hope when we can secure our retirement with sustainable cash flows? I’m talking about yields of 6%, 7% or even 8% or more that barely blink when the markets melt down.

These investments are easy to buy. In fact, we purchase them just as we would a mere “common” stock. But here, we’re looking past the obvious to purchase these preferred payouts (yielding 7.4% on average, we’ll talk tickers in a moment).… Read more

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It’s a piece of advice so common I’m sure you’ve heard it a million times. Too bad it’s dead wrong.

I’m talking about the so-called “wisdom” that index funds always beat funds with real, live human managers.

Before I get into why it’s wrong—and show you 10 smartly run funds that easily beat their ETF cousins (while dropping an unheard-of 7.5% average dividend into our laps)—let me explain the problem here.

First, I should say that there are cases where index investing makes sense. If you’re 20 years old and you’re putting 10% of your income into a retirement fund, planning to retire when you’re 60 and won’t touch your savings till then, index investing may work for you.…
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