Writing covered calls on stocks that pay above - average dividends is a strategy that can be used to
boost returns on a portfolio, but it carries some risk.
Not exact matches
Looking only at the glass as half - empty will leave you
on the sidelines while some great opportunities to
boost your income and your overall
portfolio returns pass you by.
On the other hand, adding some stocks and bonds to a
portfolio of stable, short - term cash investments could
boost the probability of achieving higher long - term
returns.
I can understand why many people might be tempted to compensate for lower expected
returns by investing more aggressively — say, loading up more
on stocks or tilting their
portfolio mix to small caps or tech — in hopes of
boosting returns.
And while rising rates are bad for bonds and bond funds in the short - term, climbing yields can actually
boost returns on a diversified
portfolio of bonds over the long haul, as interest income and proceeds from maturing bonds are re-invested at higher rates.
In our latest white paper, Senior
Portfolio Manager Duane McAllister explains how the recent
boost in short - term yields not only allows investors to once again earn a reasonable nominal
return on their money without needing to take significant duration risk, it also provides an opportunity to earn a positive real
return, since core inflation measures remain below the Fed's 2.0 % target.
That would
boost his potential
return on a 60 - 40
portfolio by one percentage point from 4.75 % to 5.75 %.
What if I told you that you could substantially
boost your
portfolio returns without taking
on excessive risk?
If you're not counting
on your
portfolio to pay your bills, monthly payouts like these are a godsend, because you can reinvest your dividends faster, giving your
returns a nice
boost over the long haul.