With further rate cuts expected, low interest rates are here to stay – and income-oriented investors are increasingly turning to dividend-focused funds. However, when it comes to which dividend ETFs are the best, it’s not necessarily the ones with the highest yields. Today’s article highlights five dividend ETFs which have been identified as top picks by analysts taking into consideration “expense ratios, how the funds weigh certain stocks as well as technical factors such as tracking errors.” For these five top-rated dividend ETFs, CLICK HERE.
“Whether your focus is big companies or small, domestic corporations or international ones, there are ETFs where income-oriented investors can find investments that pay more than the average S&P 500 index component,” notes the author of today’s article – who proceeds to highlight nine income-focused ETFs which, while focusing on different categories of stocks (e.g. large-cap, preferred, low-volatility) and employing different strategies (e.g. current dividend yield vs. dividend growth) offer above-average dividends. For more, CLICK HERE.
For dividend investors looking to achieve financial independence, the author of today’s article notes that the key is reaching the dividend crossover point – “The magic point…where the dividend income exceeds the expenses of the dividend investor”. Reaching the dividend crossover point isn’t easy, however, and the author identifies the key ingredients to doing so, as well as some rules to follow “in order to create s sustainable dividend producing machine, which would produce dependable income for decades.” For more, CLICK HERE.
In regards to economic measures such as retail sales, industrial production, and employment, the author of today’s article notes that “it is a perverse fact that such measures have been at their highest points, and even at record levels, just before falling a few months later under the weight of an economic downturn.” And now another indicator that tends to peak before a downturn – and is currently at a record level – can be added to the list: the household wealth to income ratio. What does this ratio mean – and is it flashing a warning that a recession is coming? CLICK HERE.
Do you know your net worth? The author of today’s article points out that “Many people know the number on their last paycheck, but not their net worth”, and he notes that “That’s a shame, because net worth is the single most important personal finance metric.” In fact, tracking your net worth (and understanding that it’s more important than income) is the first of nine “hacks” the author outlines to help you save more money. For some tools to help you track your net worth – and for the other eight hacks – CLICK HERE.
When it comes to dividend stocks, the author of today’s article observes that too many investors fixate on a company’s past record of payouts, rather than focusing on a company’s prospects to continue increasing its payout well into the future. He proceeds to highlight five dividend aristocrats that he believes have years – and even decades – of dividend growth ahead, noting “We’re better off focusing on companies that are generating sales and profit growth organically. From there, we choose the firms that are financially fit enough to dish an increasing amount of their profits back to their shareholders every year.” For more, CLICK HERE.
How do you go about turning your retirement savings into retirement income? In today’s article, the author examines a number of retirement income strategies – and the pros and cons of each. Is the traditional approach – the 4% “safe” withdrawal rate – still safe? Does the proposed 7% “optimal” withdrawal rate have merit? What strategy “provides the highest income stream without the risks of high withdrawal rates” – and what strategy has been singled out as the “ideal plan”? CLICK HERE.
Rates have been ticking up (and further increases are expected this year) but we are still in a low yield environment – and will likely remain in one for some time to come. So where can investors find income in this environment without taking on too much risk? Today’s article makes the case for considering convertible bonds (which can be converted into stock of the issuing company), noting that “convertibles are uniquely positioned to offer the growth potential of stocks, but with the income and downside risk management characteristics of traditional bonds.” For more, CLICK HERE.
The firm that invented the automatically dimming rearview car mirror (and now controls about 90% of that global market), a leading investor in the infrastructure underlying clean energy projects, and a leading supplier of niche surgical products are the three companies highlighted in today’s article which seeks to identify little-known small-cap dividend stocks that income investors may want to become acquainted with. For more on these three dividend stocks – and why they may be worthy of the income investor’s consideration – CLICK HERE.
While dividend-paying stocks can be reliable sources of income from strong companies, the author of today’s article argues that “the dividend stock landscape has changed somewhat, and investors should consider a variety of factors when hunting for returns.” What might income investors want to consider when it comes to the valuation, business performance and management outlook, and tax implications of dividend-paying stocks in this new landscape – and what three dividend stocks does the author highlight as strong picks? CLICK HERE.