Dividends4Life: Deleverage Your Portfolio Before The Market Forces You To

I know that a lot of Seeking Alpha readers are invested in "High Yield" securities. That's specifically why I've been writing about this topic so much lately. There are a large number of these kind of investments that have risen up to take advantage of demand from people who want to supplement their income. Where it's becoming dangerous is for the people whose expenses have risen to require that extra income.

Start repositioning your core holdings in companies that have shown that they can earn consistent profits year after year. The more years, the better. Companies with lower debt to asset ratios. Ideally as low as you can, but who still have a history of being able to pay higher dividends each year. The S&P 500's "Dividend Aristocrat" list is a good place to start. Or just own the whole group of them through something like the SPDR S&P Dividend ETF (NYSEARCA:SDY). It's not going to earn you double-digit yields, but it's also not going to squash your net worth when interest rates go up.

Source: Seeking Alpha

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