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

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

“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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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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