One of the first bosses I ever had was a third-generation owner of International Business Machines (IBM) stock. Naturally he was one of the first people I know to really talk up the benefits of covered call writing. Writing calls allowed him to take the moderate dividend yield on his shares and turn it into […]
Should you cut back on your bond holdings? Consider the following comparison. A 30-year Treasury bond purchased in January cost $100 and has a 2.34% coupon. Every year for 30 years the owner will receive $2.34. At bond maturity in 30 years the bond will be redeemed for $100. The total annual return for that […]
With the Federal Open Market Committee holding interest rates steady, the fixed income market is suffering from vanishing income. Where is the next best place to generate yield? The answer is high-dividend paying companies with strong brand recognition, solid fundamentals, and those that are currently undervalued from recent earnings lost due to the COVID Pandemic. […]
It’s no secret that finding stocks that pay dividends can be a great way to generate passive income. However, not all dividend stocks are created equal. There are two particular stocks that I believe stand out from the others and are a great addition to any portfolio. Johnson & Johnson (JNJ) and Target (TGT) are […]
When you write a covered call you are allowing someone to buy shares you currently own at that specific price before the option contract expires. This is a great method for generating income into your account using stocks you already own. For the stock to get called away, the price needs to be at or […]
The coronavirus pandemic has massively and adversely changed how struggling companies view their dividends payments. Companies cut the amount of money they returned to shareholders to the tune of $42.5 billion. “There were massive dividend suspensions in Q2 2020 as companies had no time to ride out the virus, as sales were cut off and positive […]
Risk-averse investors often are caught in a dilemma. They are wary of investing in the stock market due to its volatile nature. At the same time, they are not happy with the low interest rates offered by savings and money market accounts. If you find yourself in a similar situation, building a CD ladder might […]
In a low-interest rate world, how can retirees leverage their retirement savings assets to generate an income stream, one sufficient to provide for living expenses once they stop working? Here are some ideas for how to use dividend stocks to enhance the income generated by your portfolio.
During the past decade, in a market environment of zero-interest rates, income-oriented investors often got far less than 1% on their money. The Federal Reserve has increased interest rates steadily over the past few years, and investors now now have more options available for higher yields. Here are some ways to invest that are far […]
Investing in real estate is undoubtedly a poignant way to add stability to your investment portfolio. In the past, real estate investments were mostly restricted to residential, retail, and industrial sectors. That is not the case anymore, as alternative real estate has become the preferred choice of many investors in the country. Data shows that […]
