Quantcast
One Of The Best High-Yield Investment Ideas You’ve NEVER Heard Of

One Of The Best High-Yield Investment Ideas You’ve NEVER Heard Of

Posted On November 8, 2018 3:52 pm
By:

I think we can all agree that it would be ideal to be able to fund a comfortable retirement 100% from safe and growing dividends. That way you will be able to sleep well at night even in the most severe bear market because no matter how low stocks drop your portfolio’s income would be unaffected. My own high-yield income growth retirement portfolio is based around this goal and uses three time-tested investing principles:

  • High and safe yield (5+% portfolio goal)
  • Fast long-term dividend growth (10+%)
  • Good companies bought at firesale prices (high margin of safety and long-term valuation return boost) – average holding is 32% undervalued

Essentially I’m a dividend-focused contrarian value investors. That means always looking for the best opportunities in terms of generous, safe, and growing yield, that, for short-term reasons, Wall Street hates. The key to this strategy is to avoid “yield traps” or stocks with mouth-watering but unsafe dividends that are likely to be cut and thus send the share price crashing.

Fortunately Wall Street is famous for overreacting to a company’s short-term challenges, and thus there are usually plenty of great high-yield, deep value opportunities for long-term income investors to profit from. Let’s take a look at why Kite Realty Group (KRG) is one of my strongest conviction buys right now. Not just do I own it myself, but during the most recent market downturn, it was…

Continue reading at STOCKNEWS.com

About author

Dividend Sensei
Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I currently write for both Seeking Alpha, Simply Safe Dividends, and DividendSensei.com My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams, and enrich their lives. With 22 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams. I'm currently on an epic quest to build a broadly diversified, high-quality, high-yield dividend growth portfolio that: 1. Pays a 5% yield 2. Offers 7% annual dividend growth 3. Pays dividends AT LEAST on a weekly, but preferably, daily basis

2 Comments

  1. Joey November 12, 2018 at 9:17 am

    Hey Dividend Sensei!
    I’ve really enjoyed reading your articles after stumbling on your editorials at SeekingAlpha. I’m new to this investments game although I’m already 56yo. Though I’m currently using an investment agent, I’m intrigued at your approach to retirement using dividend investments.
    I currently have around 150K to invest aside from what I’ve entrusted to my agent and a few stocks I own positions in. I really want to retire in 9 years and have no debt. What’s the best way to use the 150K to help achieve my goal?
    Thank you–
    Joey

    • Dividend Sensei November 12, 2018 at 9:24 am

      https://seekingalpha.com/article/4219010-dividend-senseis-portfolio-update-58-bull-markets-make-money-bear-markets-make-rich?source=all_articles_title

      So I can’t give out personal investing advice without knowing your exact specifics. However, I maintain 5 watchlists of quality dividend stocks in my portfolio updates. Here’s the link to the last one.

      They focus on the most undervalued quality names you can buy: high-yield blue chips, fast dividend growers, aristocrats and kings, monthly payers, and my bear market buy list in which 3 of the stocks are strong buys today.

      Currently, there are about 20 stocks on those lists, in about 8 sectors. With a 9-year time frame, and given the quality of those stocks and their current valuations, you could put $150K into all 20, equally weighted, and probably do very well.

Leave a reply

Your email address will not be published. Required fields are marked *