As many Baby Boomers begin the journey into retirement, finding sources of reliable income becomes ever more important. Nevertheless, with interest rates at unbearably low levels, many traditional sources of income such as certificates of deposits and money market funds like the PIMCO Enhanced Short Maturity ETF (NASDAQ:MINT) are paying next to nothing. What's worse is that financial obligations are usually owed monthly. We pay our mortgage, cable bill and utilities each month. Most bonds pay semi-annual interest and stocks pay quarterly. Finding good sources of monthly income is paramount.
Adding monthly dividends has other benefits besides paying your car loan on time. For those reinvesting the income, compounding occurs quicker. Money you can reinvest immediately compounds at a higher rate. This allows portfolios to take advantage of better dollar-cost scenarios. In addition, waiting six months for your money reduces the true yield on your investment. Monthly payments also help smooth out erratic income associated with semi-annual or quarterly payments. Furthermore, a monthly paycheck can help with budgeting and prevent overspending.
Source: Investopedia
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Late last year, Wall Street had a bit of a panic attack when Fed chairman Jerome Powell suggested this tightening was on autopilot. While th...
-
If you’ve been following this column, you’d know that monthly dividend stocks tend to come from two main types of businesses: real estate an...
-
Are you sick and tired of low interest rates? Certificates of deposit pay next to nothing. Bonds yield only three or four percent a year. Su...
-
These three picks are all up more than 10% so far in 2019. The three themes are LNG, specialized healthcare, and small banks. The yields ran...
-
This company makes a compelling value proposition on the dip for DGI investors. The REIT has strong portfolio stats and a conservative AFFO-...
-
This company makes a compelling value proposition based on valuation, risk/reward, yield, and upside potential. I added this hotel REIT las...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
Stocks with high dividend yields can be great, but if a stock has a high dividend yield and also has lots of long-term growth potential and ...
-
At its opening price of $101 per share on Jan. 7, MSFT stock had a market cap of $782 billion, which made it the most valuable company in th...
-
If a company pays, say, 14%, you would only need to put up $71,429 to earn $10,000 in annual dividends. Of course, we know that double-digit...
0 comments
Post a Comment
Post a Comment