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

  • by:
  • 08/21/2022

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

JACK POSOBIEC: The government goes after MAGA and Trump while pedophilia in Hollywood is 'perfectly fine'

"Why would Nickelodeon employ people who had been already convicted of child sex abuse?"...

UK medical body claims preventing teachers from 'affirming' child sex change will 'cause distress' to students

The medical body told the UK Department of Education it does not think parents should always know if ...

Evan Gershkovich's detention in Russia extended over espionage allegations

The US ambassador to Russia, Lynne Tracy, maintained that "the accusations against Evan are categoric...

Women workers at greater risk of being replaced by AI: study

7.9 million jobs would be lost in the "worst-case scenario."...