Income Hunting: Why Yield Matters (And How to Lock It In)

Hilary Kramer discusses how to find stocks that provide investors with high yields.

  • by:
  • 08/22/2022

Sophisticated investors know that even a little dividend income makes the difference between a miserable year in the market and a relatively easy recovery.

After all, stocks swing up and down with sentiment. However, when companies hand you a piece of the profit every three months, Wall Street???s shifting moods will never take it away. Even getting 2 percent of your investment back in a typical year makes the difference between losing money and breaking even 10 percent of the time.

Investors who capture that yield can wait longer for a stock market crash to play out before they need to liquidate. And if you need the income, the checks help pay the bills.

Unfortunately, the S&P 500 barely pays 1.9 percent a year. Even when the market was at its weakest, investors only got a chance to lock in a 2.2 percent yield.

That???s a problem because, as I said on Fox Business News yesterday, ???patience??? at the Federal Reserve gives inflation free reign to take a bigger bite out of your real investment returns.

To read the rest, click here.

Save the Date:  I am speaking at TradersEXPO on March 12 and I want to invite you to reserve your free seat if you're in the New York City area. Those of you who've attended any of my live sessions in the past know what it's all about: the top trades on my radar, along with my up-to-the-minute thoughts on the macroeconomic environment and plenty of time for YOUR questions. I'd love to see you! Space is limited so now's the time to reserve your spot.

P.S. There's still time to learn about my "No. 1 Value Stock for 2019." Click here for access.
Image:
ADVERTISEMENT

Opinion

View All

Christmas celebrations in Bethlehem muted amid ongoing Israel-Hamas war

“Bethlehem is the capital of Christmas. It’s supposed to be the best time of the year. None of that i...

BREAKING: 38 dead after jet crashes in Kazakhstan—passenger films crash from inside cabin as plane goes down

Azerbaijan Airlines flight J2-8243 was on its way to Grozny in Russia but was diverted because of fog...

Massive Russian strike leaves over half a million Ukrainians without heat on Christmas: report

“Unfortunately, we will have to evacuate one of the city’s hospitals again, where more than a hundred...

LIBBY EMMONS: What to do when your kid demands to know the truth about Santa Claus

"Please, just tell me if Santa is real, I have to know the truth!"...