Time to Buy the Bottom in These 8%+ Yields?

Our Archive

Search completed

Time to Buy the Bottom in These 8%+ Yields?

As contrarian income seekers we buy when yields are high and prices are low. Today, we’re going to explore a three-pack of dividend funds that pays 8.5%.

This is “retire in style” income. We put a million dollars in these plays and get paid $85,000 per year. Plus, we keep our principal intact.

And wait, there’s more. The cheapest of these three funds is currently trading for just 89 cents on the dollar. Yes, that’s an 11% discount to the value of its underlying holdings.

Too good to be true? Or bottom-fishing bargain? Let’s explore my preferred dividend strategy and these three dividend machines.… Read more

Read More

Should You Pounce on These 8%-Yielding Preferreds?

Boring is perfect when we’re talking retirement investing.

We’ll let others take the S&P 500’s sad 1.7% yield and frequent mood swings. While we direct our attention to an elite trio that yields 8.2%.

You read that right. Eight-point-two-percent per year… in dividends alone! That’s an excellent $82,000 in annual income on a million dollar portfolio. Or $41,500 on a $500K nest egg. You get the idea.

Plus our yield cushion will help soften a September selloff. (Because let’s face it, this is most likely a bear market rally we’re in the middle of.)

No, the stock market doesn’t just give out 8.2% yields for nothing.… Read more

Read More

3 Punchy Preferred Funds Yielding 6.2%-6.9%

Most income investors limit themselves to mere “common” dividends. But there’s no need for us to settle for 2% blue-chip yields when we can bank 6%+ payouts from the same companies.

Let’s use Bank of America (BAC) as our example. The stock should keep sailing as the 10-year Treasury rate grinds higher.

Common shares of BAC yield just 1.8% today. (This is what we receive when we type in “BAC” and hit the “Buy” button.) That’s not much. Fortunately, we can look past common dividends for higher yields without sacrificing safety.

Companies also can issue what’s referred to as “preferred stock.”… Read more

Read More

Categories