3 Preferred Funds to Play the Powell Pause, Yields up to 9.2%

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3 Preferred Funds to Play the Powell Pause, Yields up to 9.2%

The Fed “pause” is on—and that means we’re this much closer to the first rate cut since the COVID-caused race to zero.

It’ll soon be “game on” for fixed income of all sorts. And that includes one class of stock that has been kicked deep into value territory—giving us a potential one-two punch of high income (6.9% to 9.2% yields) and a violent bounce off the bottom.

More on these sweet payouts in just a second.

A High-Yield Way to Ride Powell’s Coattails

Federal Reserve Chair Jerome Powell and his henchmen at the central bank recently made the call to keep the benchmark fed funds rate level—a clear acknowledgement that the economy is indeed slowing.… Read more

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3 Pullback-Proof “Preferred” Payouts Averaging 7.4%

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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A Pandemic-Proof Bond Fund? New Dividend Raise, Now Pays 8%

While most income investors stare at their portfolios, searching for the next shoe to drop, we contrarian yield collectors were treated to a rare treat this week. A dividend increase—from an income fund that now yields 8%!

We’ll talk specifics in a moment, but let’s start with the cash flow stream. This fund buys “preferred” shares, a brand of stock that most mainstream investors are not familiar with. The “first-level” types typically limit themselves to the common shares of stock, which are what you receive when you place an order to buy with your broker.

Preferred are there, too, if you know where to look.… Read more

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How to Boost Your Portfolio’s Yield by 194%

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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The Best, And Worst, Ways To Buy Preferred Shares

As you near (and enter) retirement you probably favor bonds, which provide income with less drama than stocks. However, less drama means less potential upside. With retirees living longer than ever before, 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.

So, we want to capture the dividends that stocks pay and the upside potential that they provide by minimizing our downside risk.… Read more

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Revealed: A Massive 7.4% Dividend From … Bank Stocks!?

If you’ve held off on bank stocks for the last few months, I have good and bad news for you.

The good? You’ve still got time to get in before the banks take off on their next surge.

The bad? After the big profits this hated sector has posted in the last couple weeks, your window is closing fast!

So today we’re going to look at why 5 of the 6 biggest US banks look strong now … but being the dividend hounds we are, we’re not going to buy “regular” bank stocks, with their pathetic sub-2% dividend yields.

No way.…
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This “Preferred” Fund Crushes ETFs and Pays 7.3% in Cash

I get a lot of questions from readers about high-paying “preferred shares.” And most of these queries have one thing in common: worry!

You see, many of these folks are concerned that preferreds—known for their outsized dividend yields funded by safe cash flows—will get swamped as interest rates rise.

So today I’m going to show you why you can set these fears aside. Further on, I’ll reveal a preferred-stock fund that lets you rope in an outsized 7.3% cash dividend and price upside, too.

First, I should say that preferred shares aren’t alone in stoking investor fears. Other high-yield investments are, too, such as real estate trusts (REITs) and utilities.…
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Revealed: 10 “Preferred” Dividends That Crush ETFs and Pay 7.5% in Cash

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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One Click for the 500 Best High Yield Investments

Looking for high yield investments, packed in a convenient fund wrapper? You’d better look beyond these three popular names.

I’m going to show you how to “cherry pick” their best holdings today. We’ll even discuss some better “clicks to make” so that you can sell these dumb money funds if you hold them, and buy some better value (and higher yields!) instead.

What’s the price of popularity? Well, investors have sunk about $43 billion into three of the ETF world’s biggest, most prominent names. And they have less to show for it than several better-managed but under-the-radar funds.

In fact, given that these aforementioned “dumb funds” are among the biggest players in their three respective asset classes, it’s very likely that you own one if not more of these first-in-name but second-class ETFs.…
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7% Dividends and Upside (Guaranteed By the Fed!)

Preferred stocks are in the doghouse, and you just might be wondering whether this is the start of a buying opportunity.

Let me put that question to rest: it is.

Today we’re going to look at what’s behind this superb chance to buy, as well as 3 preferred-stock funds to consider: the Flaherty & Crumrine Dynamic Preferred & Income Fund (DFP), Flaherty & Crumrine Preferred Securities Income Fund (FFC) and John Hancock Premium Dividend Fund (PDT).

As you can see, all 3 of these funds are in the dumps.

A Steep Slide Down

But these are great funds, not only because of their sustainable 7% dividend yields and diversified portfolios, but also because this preferred-stock selloff is misguided.…
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