Exchange-traded funds have solved the predicament facing retirees who need investment income in a world of low interest rates. Several ETFs in the Claymore and iShares families now provide monthly payments of bond interest and dividends. Combine them in the right way and you get a diversified retirement income portfolio with a yield above 4 per cent. “Everybody wants yield, but in today’s market it’s hard to find,” said Pat Chiefalo, an ETF specialist at National Bank Financial.
Not just income, but monthly income. It’s much easier to manage your cash flow as a retiree if you’ve got investment income coming in each month, rather than every quarter or semi-annually. Many mutual funds pay income monthly, and now ETFs are starting to do the same. Blended together, the ETFs in the Monthly Yield Portfolio produce a flow of cash with a yield of about 4.4 per cent. This is achieved by judiciously mixing ETFs based on dividend stocks with bond ETFs. The overall mix is 33.7 per cent government and corporate bonds, 11.3 per cent preferred shares, 44 per cent dividend stocks and the rest in real estate investment trusts and high-yield bonds
Source: Globe and Mail
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.