The S&P is roughly 54% more expensive than its historical average. This means that you’re roughly paying 54 cents more for every dollar you put into the stock market to get the same amount of earnings that you would’ve received if you’d invested in the market in the past. This is the point where most new investors get terrified and simply run away. “The market’s too expensive,” they think, and instead put their money in bonds (low yields) or cash (no yields). Or they invest in real estate (which historically underperforms the stock market by a huge margin). Any of these options would be a big mistake.
Instead, we need to think more creatively about the stock market. If it’s pricey now, that doesn’t mean we need to avoid stocks—it means we need a new strategy. First, let’s consider bonds. To do this, we can buy the iShares Barclays 20+ Year Treasury Bond ETF (TLT), which currently pays a 2.2% dividend. We can juice our income even more and diversify away from stocks by buying junk bonds. One way to do this is to get the iShares iBoxx High Yield Corporate Bond Fund (HYG), which is now paying a 5.5% dividend. Let’s do what billionaires do and hedge our holdings. We can do this with a fund like the Eaton Vance Tax-Managed Buy-Write Opportunities Fund (ETV), which has recovered nicely after the big market turmoil earlier this year. Currently yielding 8.8%.
Source: InvestorPlace
Related Articles:
- How To Buy Dividend Stocks At The Bottom
- 10 Stocks That Have Paid Dividends Since The 1800s
- Are You Patient Enough To Be Wealthy? These 7 Dividend Stocks Will Help You Wait
- Three Keys For Successful Dividend Growth Investing
- 5 Exceptional Dividend Growth Stocks With Quality Financials
A Safe 3-Stock Portfolio That Pays 5.9%
Posted by D4L | Thursday, September 29, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
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...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.