How to Retire on Dividends: Earn a Safe 8%, Leave Your Principal Intact

The firm’s source of extra profits, as discussed earlier, was its investment in MSRs (mortgage service rights). They tend to rise in value when mortgage refinancing slows down, and “refi” activity has slowed significantly in recent years. As long as this environment continues, New Residential will be the mREIT to own. At the time of this writing, o

Bengen found that a 50-50 mix of stocks and bonds and a 4% annual withdrawal rate worked. In no case from 1926 to 1976—with inflation, deflation, higher or lower prevailing interest and dividend rates, and booms and busts—did a 4% withdrawal rate exhaust a portfolio in under 33 years.* This has been often been called “The Bengen Rule,” the maximum

Two simple yet important things set Main Street apart: 1.The firm increases its investment income annually, and 2.It pays a conservative dividend so that it never has to cut it. Since its IPO in 2007, Main Street has boosted its dividend (which is paid monthly) a lovely 77%. It’s never been cut. The company smartly keeps a buffer and pays out extra

One of our favorite CEF managers is Scott Page. He’s been with Eaton Vance, one of the oldest investment management firms in the US, since 1989. He has conducted the Eaton Vance Floating-Rate Income Trust (EFT, not to be confused with ETF, an exchange-traded fund) brilliantly since inception—through rising and falling rate cycles, through rising an

Marks introduces what he calls “second-level thinking,” with a few examples: •First-level thinking says, “It’s a good company; let’s buy the stock.” Second-level thinking says, “It’s a good company, but everyone thinks it’s a great company, and it’s not. So the stock’s overrated and overpriced; let’s sell.” •First-level thinking says, “The outlook

We have found that you don’t have to choose between income now and growth later when you can achieve both with a CEF like AllianceBernstein’s Global High-Income Fund. (And by the way, as we write, that fund is offering up a “free” $1.92 per share discount. How’s that for a supposedly efficient market!)

The common shares from JPMorgan Chase (JPM) pay 3.1%. But the firm recently issued Series DD preferreds paying 5.75%. JPMorgan Chase shareholders looking for more income may be happy to make this tradeoff. Meanwhile, Bank of America (BAC) common pays 2.1% today. But B of A just issued some preferreds that pay a fat 5.88%.

If you’re looking for tax exempt bonds, you may be attracted to the BlackRock Taxable Muni Bond Fund (BBN) at number two, with its juicy 6.5% yield and 9.2% annualized return since inception. However, that yield is only partly tax exempt, because the fund also buys taxable bonds. There are other municipal bond funds that focus exclusively on tax ex

Years ago, hospitals didn’t have mortgage financing available to them. And traditional corporate loan packages would force hospitals to lock up all of their asset value as collateral. So Ed’s team set out to offer lease financing as a low-cost and flexible alternative. Thus far, it’s been a fantastic niche—Ed & Co. have grown their zero assets