SubscribeAll Posts Tagged With: "income investor"
Income Investors: Dump GE & Buy This Safer Income Investment Instead
We’ve endured three consecutive weeks of losses for the S&P 500 (.INX). Never fun. But if you’re an income investor, ala Charles Dickens, the worst of times is creating the best of times…
Dividend yields now rest close to 15-year highs. Plus, the premiums from writing covered calls (the only safe options strategy) are significantly higher thanks to the extreme market volatility.
As far as I’m concerned, that’s an attractive one-two income-earning punch we shouldn’t ignore.
So how do we play it?
Not with the usual suspects…
Income Investors: GE Is A Dog at Any Price
There’s something about an adolescent stock price on General Electric…
2Feb2009 | Investment U | 0 comments | 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 ...
