SubscribeAll Posts Tagged With: "income investing"
Now Is a Once-in-a-Lifetime Opportunity for Income Investors
Not one investor in a hundred realizes this, but now is a once-in-a-lifetime opportunity for income investors.
Most people will never recognize this opportunity because they don’t know what a truly great income investment is. Most income seekers like to buy things like commercial real estate stocks (REITs) to collect rents.
REITs have a big problem: They’re required by law to pay out 90% of their distributable earnings. So if they want to grow, they have no choice but to take on debt or dilute your interest by selling more shares. That’s why so many REIT dividends have been cut over…
16Apr2009 | Stansberry and Associates | 0 comments | ContinuedFixed Income Investing: The “Secret Alternative” to Equity Indexed Annuities
For many investors, the concept of an equity indexed annuity (EIA for short) – which establishes a guaranteed minimum rate of return, and the ability to capture the upside of the next bull market with no risk of loss – is proving irresistible. That’s especially true at a time when the Standard & Poor’s 500 Index is still down nearly 45% from its 2007 high of 157.52 and new U.S. President Barack Obama’s stimulus plan has yet to be finalized.
But at the risk of receiving more than a few sharp emails from industry professionals who sell EIAs, let me tell…
3Feb2009 | Money Morning | 0 comments | Continued‘Fun’ stock pick with income for 2009
Investors threw the good out with the bad last year
I’m expecting 2009 to be a better time for investors. Not an easy time, as in the one-sided market of the late 1990s when everything one bought went up, but an easier time than 2008 – at least for those willing to engage in a little market-timing. And that’s although I expect rallies will only be bear market rallies within an ongoing bear market.
Why an easier time then?
Last year my newsletter’s market-timing strategy portfolio gained 9.2%, one of the very few advisory services that were up for the year in which the…
Beware The Dividend Trap: Here’s The Most Important Number You Should Consider
On July 7, 2008, the S&P 500 crossed the threshold into bear market territory, having slid 20% from its high on October 9, 2007.
Today the S&P is trading at 935 – a 40% drop from its high of 1,565.15. If you take the 14 bear markets since the Great Depression, the average decline was 38%. At the low on October 28, the decline was 45.5%.
So are we at the bottom? Perhaps. But consider this…
The average duration of these bear markets was 18.4 months. Given that we’re in the 13th month now, that puts us relatively close to the end, right?
Not…
5Nov2008 | Smart Profits Report | Comments Off | ContinuedInsights on Income: You Don’t Have to Sacrifice Capital Gains for a High Yield
When it comes to income investing, it’s all too easy to fall into the trap of forgoing growth in pursuit of juicy dividends. It’s a major problem when investing in U.S. stocks in particular, but internationally, investors can have their cake and eat it, too: There is no reason why you cannot have both income and growth.
Buying shares for income has traditionally entailed investing in sectors that economically aren’t going anywhere. U.S.-focused investors find themselves owning railroads, trucking companies and electric utilities, not the most exciting of sectors, and most unlikely to grow your investment as a percentage of the…
22Aug2008 | Money Morning | Comments Off | ContinuedInsights on Income: Foreign Markets are a Necessary Profit Play for Today’s Income Investor
Back in the middle 1980s, income investing for U.S. investors was pretty simple. Inflation was around 5% – roughly the same as now – but U.S. government bonds were paying close to 8%, and without going into high-risk debt issues you could find 9% with very little difficulty.
If you were an income investor, to balance those high yields, you also had to have capital appreciation, so about half your portfolio would be invested in U.S. common stocks – which, thanks to their dividend payouts, yielded a good 3%-4% themselves. Even after you paid Uncle Sam, a portfolio such as this…
14Jul2008 | Money Morning | Comments Off | Continued
Loading ...
