Bank $3,333 in Monthly Dividends with Rising Rates

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Bank $3,333 in Monthly Dividends with Rising Rates

The Fed funds rate is 0.25% higher now than it was this time last week. What does this mean for our income investments – especially our monthly dividend payers?

We’ll explore in a minute. First, let’s allow ourselves a moment to appreciate the attractiveness of meaningful monthly distributions.

Our bills arrive every 30 days. But most stocks only pay their dividends every 90. So why don’t we bridge the gap and line up our income with our expenses?

Electricity bill? No problem – got an emerging market bond distribution to cover that.

Cable? No hurry to cut the cord (and risk live sports) when we have a REIT stock that covers this month’s bill.…
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How to Pick REITs with 160% Upside as Rates Rise

Let’s assume that higher long-term rates (3%+) are here to stay. Can REITs (real estate investment trusts) and high rates co-exist? Or must there be just one winner in this suddenly one-sided tug of war?

After all, as the 10-year Treasury’s yield has rallied, REITs have suspiciously suffered:

REITs and Rates: Oil and Water?

And the headline arguments against REITs during rising rate periods seem to make sense:

  • REITs need cheap money to grow, and
  • When risk-free assets pay more, income investors will buy them instead of REITs.

These knocks may apply to low-yielding shares, especially static payers, but they historically haven’t applied to firms (REIT or otherwise) that have been able to grow their payouts meaningfully as rates have risen.…
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9 Dividends Due for a Raise in March

Dividend growth is the key to retirement because it fends off the effects of inflation. Even amid low inflation of 2% to 3% a year, a stagnant dividend will actually lose 2% to 3% of purchasing power a year. The only way to actually grow your income over time, then, is to invest in companies whose management makes rising dividends a priority.

That’s one reason you should buy stocks before their dividend increases. And we’ll review nine upcoming payout raises in a moment.

But there’s a second reason that’s coming to the fore of late: interest rates.

While the Federal Reserve has tried to put the spurs to interest rates with five bumps to the Fed funds rate since December 2015, bond yields haven’t cooperated much.…
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10 Dividend Hikes That Will Ring in 2018 (Yielding Up to 9.3%)

January is a busy time of year for companies looking to amplify their regular payouts. I’ve already shown you a mess of master limited partnerships (MLPs) that should hike their distributions next month. But for those of you who don’t subscribe to those tax headaches, I have a list of traditional companies and real estate investment trusts (REITs) that should up the ante, if history is any indication.

I encourage investors to seek out high yields and high rates of dividend growth – study after study shows the benefits of both. This isn’t just a localized market trait, either. Studies of global equities show exactly what we see here at home: That yield and growth truly matter over the long haul.…
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The Best Monthly Dividends (for an 8% Yield) in 2018

If you make just one New Year’s resolution this year, make it this: buy monthly dividend stocks. Today I’m going to give you 3 that should be at the top of your list.

The benefits of monthly payouts go way beyond the convenience of getting paid every month, just as our bills show up (although that’s a great bonus that can save you a lot of time watching your cash flow in retirement).

There are a couple other overlooked benefits monthly payers give you:

  • They’re a sign of dividend safety: Smart C-suite types know that a dividend is a promise to investors, and they wouldn’t commit to sending one out every month if they weren’t serious about keeping—or raising—the payout.

…
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The Best Monthly Dividends (for an 8% Yield) in 2018

If you make just one New Year’s resolution this year, make it this: buy monthly dividend stocks. Today I’m going to give you 3 that should be at the top of your list.

The benefits of monthly payouts go way beyond the convenience of getting paid every month, just as our bills show up (although that’s a great bonus that can save you a lot of time watching your cash flow in retirement).

There are a couple other overlooked benefits monthly payers give you:

  • They’re a sign of dividend safety: Smart C-suite types know that a dividend is a promise to investors, and they wouldn’t commit to sending one out every month if they weren’t serious about keeping—or raising—the payout.

…
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The Ultimate 3-Step Strategy for Big REIT Profits

I’ve spoken to a lot of investors who are still scared of real estate after the housing bubble burst in 2008. These folks have a lot of cash on the sidelines, and they’re desperate for income, but they’re too scared to jump into real estate.

Usually when investors express these fears, I show them this chart:

Real Estate Beat Stocks in the Real Estate Crash

This is a chart of the SPDR S&P 500 ETF (SPY) and the SPDR Dow Jones REIT ETF (RWR). The latter only holds real estate investment trusts (REITs), which are companies that rent out real estate and pass most of the rental income to shareholders as dividends.…
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This Fund Turns Apple’s 1.6% Yield Into 7.4%

Back in February 2016, I wrote an article titled “4 Reasons to Buy This 9.2% Yielding Equity Fund”. That fund was the AGIC Equity and Convertible Income Fund (NIE).

Since then, NIE has done this:

Almost 50% Gains in a Year and a Half

Oh, and did I mention that NIE pays a 7.4% dividend? That’s right: $100,000 in this fund gives you $616 per month in cash.

Despite the conventional wisdom about dividend yields, that high yield doesn’t come with high risks. Not only has NIE been growing its dividend since 2009, but that income stream is well covered by the fund’s investments—again, thanks to its big returns, as we see in the chart above.…
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8 Big Dividend Increases Expected This Summer

Dividend growth is one of the keys to a strong retirement portfolio (and 12% annual gains forever). While any stock boasting a big stated yield is sure to grab your attention, if that dividend isn’t growing, it’s actually shrinking (as inflation eats up more and more of that income every year.)

That’s why I regularly keep my eye on dividend increases … and why I’m looking at a bundle of stocks that are very likely to up the ante on their regular payouts over the next few months.

If you’re an income investor, it’s increasingly important to focus on dividend growth because – guess what? – it’s slowing. Check out the chart below, which shows the S&P 500’s rate of dividend growth has pulled back to its lowest point since 2011. …
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3 Amazon-Proof Retail REITs Paying up to 5.4%

Amazon.com (AMZN) is eating everything retail alive – including most retail REITs. As a result, the entire sector is selling at fire prices – leaving us with a select handful of underappreciated bargains.

Why the panic? Amazon has completely transformed retail over the past decade or so, starting with books, but expanding into just about every corner of the traditional retail market – clothes, electronics, home goods and even staples like toilet paper and laundry detergent. The company gobbled up $98 billion in “electronics and other general merchandise” sales across all of 2016 – an expansion of nearly 30% that shows Amazon’s growth in e-tailing is still rampant.

So, as you sell your retail-related dividends, don’t forget to ditch their landlords. As more storefronts shut down, REITs that lease retail space are getting clobbered. …
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