We believe this stringent process in identifying value opportunities has the potential to
yield a portfolio of high - quality, dividend - paying companies.
GCE tracks an index of US - listed closed - end funds, aiming for exposure to a high -
yield portfolio of closed - end funds with big asset bases and high liquidity, and which trade at attractive discounts to NAV.
With this in mind if we were to receive $ 100,000 in dividends per year, we would have to have $ 5 million invested in the S&P 500 index or equivalent
yielding portfolio of companies.
Not exact matches
He started in high -
yield bonds and went on during the internet boom to turn a million dollars in patent acquisitions into a
portfolio of software intellectual property worth $ 150 million.
Gundlach predicts that both high -
yield bonds and a
portfolio of mortgage - backed securities could return about 6 percent in 2013.
However, rates have retreated from over 8 percent in the last several weeks, and the credit risk
of high -
yield bonds can offer some diversification from the interest - rate risk
of a
portfolio of Treasury bonds.
Cannon figures that the average credit quality
of a the big banks lending
portfolio probably falls halfway between high -
yield debt and investment grade.
Government bonds could help reduce default risk, but because
of the length
of maturity required to earn any meaningful
yield, they do little to reduce duration risk - i.e. the overall sensitivity
of a
portfolio to interest rate rises.
All told, the jump in Treasury
yields has yet to make its way into the broader economy in the form
of higher borrowing costs, yet it will likely start to dampen the housing and auto markets as consumer loans become more expensive, said Gary Cloud, a
portfolio manager
of the Hennessy Equity and Income Fund.
With a
yield north
of 10 %, it was a
portfolio staple, its units trading for a lofty $ 17 apiece.
Its underlying index selects and weights its bonds by market value, and this method
yields a
portfolio that aligns well with our benchmark in terms
of credit tranches and maturity buckets, with the only notable difference being a slightly lower YTM.
Bonds have never been a part
of my
portfolio given the historical lower
yield when compared with equities.
I want to share the current state
of my dividend
portfolio, related to market value, forward - looking dividends,
yield and
yield on cost.
There are a multitude
of reasons as to why this occurs but it's a powerful enough force that many investors have done quite well for themselves over an investing lifetime by focusing on dividend stocks, specifically one
of two strategies - dividend growth, which focuses on acquiring a diversified
portfolio of companies that have raised their dividends at rates considerably above average and high dividend
yield, which focuses on stocks that offer significantly above - average dividend
yields as measured by the dividend rate compared to the stock market price.
Cumulative inflows into the iShares Short Maturity Bond ETF (NEAR), Floating Rate Bond ETF, SPDR Bloomberg Barclays Short Term High
Yield Bond ETF, PowerShares Senior Loan
Portfolio, and the Vanguard Short - Term Corporate Bond ETF topped $ 400 million in total for the first session
of the week, the highest since the inception date
of the most recent member
of this product group.
Fixed income, rising (or falling)
yields, junk bonds, Fed tightening, TIPS, spreads, mortgage - backed securities — there's no shortage
of jargon for this supposedly «boring» investment that most
of us own in our
portfolios.
Mark Vaselkiv,
portfolio manager at T. Rowe Price, noted that «Einstein said there were three great forces
of nature: gravity, electro magnetism, and compounded interest... high
yield is an asset class that ultimately capitalizes on the latter.
These behavioral finance influences can skew a
portfolio's overall allocations toward an overemphasis
of potentially higher -
yielding equities that in some instances may represent more downside risk than upside potential at current valuation levels.
«This asset class has a high level
of current income, and every academic study has shown if you hold your
portfolio over long period, you could get
yield of 8 % a year over five to 10 years.»
Historically, someone in my situation would have constructed a «balanced»
portfolio of fixed income investments and stocks, with the fixed income portion likely making up at least half
of the
portfolio and
yielding five percent or so.
I'm still shooting for a
portfolio valued at over 1.7 Mil that
yields an average
of 3.5 %.
November 2014 Quick Hits: November marked the beginning
of me focusing on raising the overall
yield of my
portfolio to provide a larger base
of slower growing, high
yielding stocks.
Similarly, you should have a variety
of bonds in your
portfolio, including Treasury bonds, municipal bonds, corporate bonds, bonds with different maturities, foreign bonds and high -
yield bonds.
Back in 2007, before the financial crisis, a
portfolio of investment grade bonds would have
yielded comfortably over 5 %.
For stocks, it's important to have stocks in your
portfolio from a large variety
of companies, including companies in different sectors or industries, such as consumer staples or materials; from companies
of different sizes, such as large - cap or small - cap stocks; from companies in different countries and from companies that either have growth potential or good dividend
yields.
Such information may include, among other things, projections, forecasts, estimates
of yields or returns, and proposed or expected
portfolio composition.
In order to received $ 60k in annual dividend income, I'll need a
portfolio valued at over 1.7 Mil that
yields an average
of 3.5 %.
With the oil majors all trading at fair and undervalued prices due to the decline in oil prices I was able to both increase the
yield of my
portfolio while also getting great companies at a fair price.
The methodology provides a well - screened group
of stocks that also delivers
yields greater than the market (S&P 500
yields ~ 2 % while the stocks in our
portfolio have an average
yield of 6.5 %), safety in the sustainability
of the
yield because
of strong free cash flow, and the potential for capital gains as each stock is currently undervalued.
This convergence
of yields has implications for the behaviour
of investors: with bond
yields in different countries tending to move together, investors have found it more difficult not only to diversify their
portfolios but to find trading opportunities.
My dividend strategy is a hybrid
of high
yield and dividend growth designed to deliver high current income with dividend growth at a
portfolio yield of ~ 7 %.
While I would expect downward pressure on Treasury
yields in the event
of fresh credit strains, we are not inclined to increase our
portfolio duration until (unless) we observe a spike in the 10 - year
yield toward 4 % or higher.
Platinum Members and higher can access February's Safest Dividend
Yields Model
Portfolio as
of Thursday, February 22.
Platinum Members and higher can access March's Safest Dividend
Yields Model
Portfolio as
of Wednesday, March 21.
Many investors look to their bond
portfolio as a source
of income, and therefore favor higher
yielding securities.
Given the overall high
yield of my
portfolio, looking towards some more growth oriented payers is something I'm looking towards moving forward with this
portfolio.
Steelcase Inc. (SCS), a manufacturer
of office furniture and other interior architectural products, is one
of the additions to our Safest Dividend
Yields Model
Portfolio in June.
Add in the 1.6 % dividend
yield and 22 consecutive years
of dividend increases and TJX could be an excellent
portfolio addition.»
I allocate 40 %
of my main taxable
portfolio to these and similar high
yield instruments.
Platinum Members and higher can access November's Safest Dividend
Yields Model
Portfolio as
of Wednesday, November 22.
As you can see in the chart below, one
of the
portfolio's strengths is the freedom it has to go beyond traditional sources
of income and pursue nontraditional income sources — such as ETF exposure to bank loans, preferred stock, and emerging market debt — in order to seek
yield.
Platinum Members and higher can access August's Safest Dividend
Yields Model
Portfolio as
of Thursday, August 24.
Platinum Members and higher can access October's Safest Dividend
Yields Model
Portfolio as
of Friday, October 20.
Platinum Members and higher can access December's Safest Dividend
Yields Model
Portfolio as
of Thursday, December 21.
The value
portfolio could generate higher returns and
yields but not without the cost
of higher risk.
Platinum Members and higher can access September's Safest Dividend
Yields Model
Portfolio as
of Friday, September 22.
The SEC
yield reflects the rate at which the fund is earning income on its current
portfolio of securities while the distribution rate reflects the fund's past dividends paid to shareholders.
Platinum Members and higher can access July's Safest Dividend
Yields Model
Portfolio as
of Friday, July 21.
The High
Yield Bond Fund is a concentrated
portfolio made up
of liquid securities, focused on high quality non-investment grade bonds with strong cash flows.
By way
of disclosure, I should mention that both Boeing and Lockheed Martin are in the current
Yield Shark model
portfolio.