Written by David Fabian, August 12th, 2016
Transitioning out of the growth phase and into the income phase of your life cycle is a unique event for many investors. Where once you were trying to save and compound your wealth, primary goals shift to generating a sustainable income stream and protecting capital.
That change also typically comes with the notion that you aren’t willing to take on as much risk as you once were. Moving from a moderate or aggressive portfolio allocation to a more conservative stance provides peace of mind. That may mean carrying higher levels of cash and fixed-income alongside differing characteristics for your stock exposure. Read more
Written by David Fabian, August 03rd, 2016
The definition of value is a fierce debate among investors that seek to find intrinsically underpriced assets. Some stand their ground on historical fundamentals like price/earnings or price/book ratios. Others look strictly at price relative to other potential opportunities as a measure of opportunity.
The picture becomes even more complicated when you try to compare or overlay differing asset classes. Income investors often blur the lines between bonds, dividend paying stocks, and alternative income assets. Read more
Written by David Fabian, March 22nd, 2016
The end of the quarter marks an important event in many ETF and mutual fund portfolios – dividend season. Many stock-oriented funds will calculate dividends or interest earned over the preceding quarter (less expenses) and pay out those distributions to shareholders. This results in a regular income stream from the dividend activity of the underlying holdings that can be disseminated according to your preferences or goals.
The Vanguard High Dividend Yield ETF (VYM) is one example of an ETF that focuses on companies with above-average dividend yields. VYM pays a dividend to its shareholders in March, June, September, and December. Likewise, even broad-based indexes such as the SPDR S&P 500 ETF (SPY) are set to payout dividends quarterly as well.
Read the complete article at NASDAQ.com
Written by David Fabian, December 10th, 2015
Forecasting where the market will end up in 2016 is a very difficult task, as innumerable variables will intercede over the course of the next twelve months. The actions of the Federal Reserve in particular are going to be a heavy influence on income investors as they seek to position their portfolios for capital preservation and dependable dividend streams. Read more
Written by David Fabian, October 07th, 2015
The search for income is always an interesting investment dynamic. Those that stray too far out into high yield or esoteric securities tend to find themselves experiencing above-average volatility or non-correlated returns. Conversely, if you stay too conservative in duration or credit quality, your total return is likely to be measured in pennies rather than percentage points. The nexus of those two extremes is ultimately the sweet spot that will produce dependable income and steady returns. Read more