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Evaluation of £UTG (Unite Group Plc). Student REIT. Thoughts?
A good defensive holding- Reaves Utility Income- $UTG- 7% dividend
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Moving assets to income producing securities should be done before you get to retirement to secure reduce your risk. BND is a good choice but there are many good choices. Funds like JAAA 6% yield, JBBB 7.8%, CLOZ 8%, UTF 7%, and UTG% 6.3%. All have higher yield than BND and other government bond funds and historically are very safe investments. less safe but still not terribly risky are PFFA 8% yield, PBDC 9%. But you also need to factor in your expected income needs. you need to have a good estimate of your income needs in retirement and then gradually work on configuring your portfolio to generate more than that income. IF your account generates more than you need and you reinvest the excess income you will never run out of money.
Enviable position but tough call. Maybe sell 3/4 of each, pay the long term gains, and invest in income. UTG has been treating me well at around 5.5% with nice recent gains. I’m not sure how you feel about income investing, jets nice seeing those dividends. Musical bond funds are nice, no federal taxes. Nuveen has some good ones. Congratulations by the way.
Nah buy UTG. Nice monthly divy plus all utility focus.
Very difficult, I totally agree. One option is a municipal bond fund. I had one recently that paid 4% but there are no federal taxes. Another option is investing for income with ETF’s. I own AMLP, an etf with gas pipelines paying around 8% and UTG-etf based on utilities paying around 6%. I would consider seeing an advisor. I use Morgan Stanley, I’ve been happy. So, you could do income based investments with a small amount in a board market index fund. You can then use the revenue to invest back into the broad market fund. It’s just one idea. It’s nice to get dividend payments.
you might want to invest in funds like eCLOZ 8% yield, JAAA6% yieldThese are CLO funds basically it is a loan obligation that collateral backing the loan. So if the company with the loan goes into default the collateral is liquidated and you get your money back. UTG 6.3% yieldand UTF 7%yield. both are utility funds but there is very little overlap in there investments. The utilities are regulated and are not going bankrupt and shutting down suddenly. All very safe dividend investments. This limits your exposure to the higher valuations of growth funds for now. * This would generate 13K a year and you could invest all that income into growth index funds. Since you are buying in slowly you are basically dollar cost averaging your purchase. in 12 years you would have 200K in growth and 200K in dividend funds. * You can set up automatic monthly purchases of the growth using the dividend income you could also take half of the earnings and put that into roth and reinvest what is [left.in](http://left.in) growth funds. * You could also ignoregrowth funds and reinvest all the dividend back into funds that generated them. I about 12 years you will have 400,000K with about 26K a year of income. * If you loose your hob at any time and need income you can stop rienvesting the dividends and start recieving the cash during the next dividend payment. Which would be a bout a month. Note I am assuming you add no more money to the 200K. So the only money going in is the dividend income. of cource could add a new higher yielding funds for more income.
Not that answer applies to a passively manage index fund. They just follow a published index like the S&P500. So if a company goes bankrupt they are off the list and a new company is added. However not all funds are based on an index. And some are activelystock managed. Some fund managers just pick the companies or other assets He believes are good investments. If one goes bad they replace it with another one they like. Now these fund managers can change the mix of assets at any time.based on the funds stated objectives. Now the fund managers Have to spend time researching and analyzing assets and monitoring their portfolio which means there is more work passive or UTF. They invest in utility stock and any any corperate bonds they sell. Now the stated objective of these funds is to generate income for investors So share price appreciation is much lower than most index funds. But the dividend is about 6 times higher than a typical pasive index fund. And the assets they hod are very different. UTG pays a dividend yield of 6.3% while UTF 7%. OR take a look at BIZD or PBDC. Both hold a group of companes called Business Development Companies that by law are required to pay out about 90% of their earnings as dividends. BIZD is based on a BDC index and has an expense ratio of 0.4% and a dividend yield of about 11%. PBDC chooses the BDC's it invests in ands an expense ratio of o.75% and a yield of 9%. With noPBDC has a slightly higher total return. Note for BIZD and PBDC an obscure SEC rule requires they to list expenses they never pay so their listed expense Ratio is about 13%. But if you read the prospectus the real expenses are much lower and I listed the values from the prospectus.
Many low beta stocks or funds are Dividend stocks. So you could get: * Low beta * Low volatility. * and income At the same time without adding bonds cash in money market funds. you can get consistent dividend yields of 6 to 10% Which is better yield than banks money market or government bonds. And you can use the dividend to either increase your dividend over time by reinvesting it bank into the fund or stock. Or you could invest the dividend into more growth index funds. UTF 7% yield and UTG 6.3% yield are both good utility funds. Regulated stable companes. JAAA 6% yield and CLOZ 8%. These in collateral loan obligations JAAA invests In AAA rated loans and CLOZ invests in BBB rated loans. These loans are back by hard assets so it the company can't make its loan payment the assets can be sold to pay the investors. EIC 11% yield is a similar fund but it invests in CCC rated CLOs. Dividends are payed out generally quarterly or monthly. and it is not uncommon for dividend funds to pay out there dividend even if the stock price falls in a market crash.
Bonds loose out to inflation because their yield is very close to the inflation rate. The long term average inflation rate is 3.2%. So you should be looking for yields of about 6 or higher. You could invest in CLO (collateral loan obligations with JAAA 6% yield from AAA rated loans. or BLOZ 8% BBB rated loans. There are two really good utility funds UTF 7% and UTG 6.3%. You could set dividend reinvestment to off. That way the cash then goes to a money market account earning about 3 to 4% You could spend or reinvest the money in the money market fund. I am retired and I use this aproach for my income. My income right now evceeds my living expenses. So 80 it spent and 20% is reinvested to insure my portfolio grows over time. Annuities are over hyped by marketing and often cost a lot fro the income they provide. And often the annuity locks you into that one investment for a long time. %
You can move the account to a brokerage without insuring taxes. I use fidelity. All you have to do is contact them provide them with he account number for the american express account number and fill outcome forms and they will mov the acount to fidelity. >I guess I realize I lost money by not putting it in stocks and by inflation. I just don't know what to do. IT is important to realize your fear of risk is is not based on your experience with your investments but your fear of not knowing what will happen. In most cases the fear is a lot larger than actual risk. In my IRA I have a bond fundFAGIX that ear a steady 5% yield but I also have JAAA 6%yield, CLOZ 8%, UTG6.3%, UTF 7%, PFFA 8%. All of these investments produce cash payments into your account regardless of what the share price will do.The share pirice may go down but the cash will still be deposited quarterly. Generally people like you do better with these investments. Now you can add up to 7000 a year into an individual IRA. I strongly suggest you do this every month. Over time as you get more failure with these funds your fear will drop. Some higher yields can be achieved with slightly more risk with funds like PBDC 9% yield, SPYI 11%. And you could put some money in VT. All of these do hold stocks. Start out small first and gradually increase the ammount. in them.
there are always people saying don't invest for X reason or invest for Y reason. Ignore all that and focus on understanding the investment your advisor is recommending read the prospectus for any funds an in general learn how to evaluate your investments. Your advisor can probably guid you or recommend classes or books to read to help you learn. Right now this is all new to you so I would ignore the news and focus on learning about dividend and growth investing and and evaluating 12K a month you are going to owe taxes on that. So keep that in mind and make sure you have have a tax advisor. But that said what i would do is invest the money in low risk dividend stocks. Such as JAAA 6%, UTG 6.3%, UTF 7%, CLOZ 8%, PFFA 8%. Eventually the money your are getting now will run out. When it does you want something to fall back on. All these funds generate cash dividends.
I would DCA in. The market is expensive according to the people who would know. I’ve been buying more income. Problem is that you have to pay capital gains on them. One way is a covered call etf. QQQI uses this technique to achieve a 13% annual yield with monthly payouts. It limits downside risk due to continued payouts according to what I’ve read. AMLP is an etf that pays 8%. It’s natural gas pipeline companies, much needed. UTG is based on utilities, 6.5% yield. AMLP and UTG both own “real assets”. They should also limit downside risk. Just some thoughts. It’s hard to know exactly what to do.
Appreciate the tip — UTG does look solid for income, though as a CEF it’s a bit different from ETFs like VOO/SCHD (leverage + premium/discount to NAV). I’d see it more as an income satellite, while keeping VOO as the core.
Why not utilities when nearing retirement and after rather than young? I'm about to move some intl over to some utility funds like UTG.
You could invest the money in JAAA 6% yield and JBBB 8% yield and PFFA 8% UTF 7% and UTG 6%.Thes all invest in different assets and provide a much better yield. These are dividend funds that pay out quarterly or monthly. Some higher yielding options are PBDC 9%, ARDC 10%,EIC 11%, and SPYI 11% the lower yielding funds are safest while the higher yielding funds have slightly higher risk. YOU will have to use a taxable brokerage acount for these funds. Set dividend investment to off. Cash will show up in the account and from there you can move that to your bank account. The higher yield of these funds will probably double your income. Any money you don't spend reinvest it for more income. Your taxes will go up due to the higher income. So you probably will have to make some adjustments to your tax withholding. I strongly suggest you read the book The Income Factory. and look at Armchair income on youtube.
I’m an equity investor though recently I’ve been putting into equities with real assets. US natural gas pipeline company ETF named AMLP. It pays an 8% yield. Considering the increased U.S. energy needs for AI, I think it’s a winner. UTG is an ETF of utilities, pays just over 6%. That’s 7% combined obviously. You put 250K at 7%, that’s 17,500 a year. That’s almost 1500 a month. No insurance, repairs, yard work or other hassles. That’s just me though. I’m not sure what housing is like in Norway.
I am really interested in your post, but also a little confused on the details. If you wouldn't mind adding some clarification. >QQQI 13% Yield, ARDC 12%, SPAYI 11%, EIC 11%, PBDC 9%, UTF 7%, SCYB 7%, UTG 6.3%, PFFD 6% FAGIX 5%. * The above is only 50% of your portfolio, and the other 50% is in growth ETF not part of the list above? * Most important question: The 5K in monthly income you receive is based on what dollar amount invested in the above portfolio? * Those numbers add up to 87%. Where is the other 13%?
The solution to this cash reserve problem is not to use cash or growth index funds as a reserve for a market down turn. Instead consider investing your cash and taxa able brokerage holdings into dividend funds. For example if we take your 150K of cash and reinvested that for dividned. Now with 150K we cannot get enough cash to provide 9K a month. but with BTCI 25% yield you could get 3K a month of income Now normally I would recemond QQQI with its 13% yield due to my risk tolerance. BTCI is the maximum yield I would be comfortable with. But with your cash and taxable brokerage invested in BTCI you would bet very close to 9K a month. If you just use the cash in BTCI and reinvested all the money back into BTCI you will have 300K in BTCI and would have an income of 6K a month. If you don't need the money reinvest it in other funds to reduce single fund risk. or you could use the money to pay off a home loan or any debt you have. Reducing your living expenses. The key things to remember about dividneds is that the money is from the companies profits. And ever in 2008 and the dot. crash most companes were still profitable and still payed their dividends. I retired at 55 and I invested in QQQI 13% Yield, ARDC 12%, SPAYI 11%, EIC 11%, PBDC 9%, UTF 7%, SCYB 7%, UTG 6.3%, PFFD 6% FAGIX 5%. A mix high yield and lowe less risky yields And I still have 50% of my portfolio in growth index funds. My living expenses are about 4K and I currently get 5k from dividends so 80% of my income covers my living expenses with the remaining 20% being reinvested for more income. Now if there is a correction in the market most of my dividend income will continue. But if not I can sells some growth for additional income. A good book to read is the income factory. And armchair income on you tube invests the same way but does good reviews of funds that can be used for income.
I would recomend diversifying into high quality dividend funds That way when the market falls the dividends will help contract some of the decline. I am using dividend funds like QQQI 13% yield, ARDC 12%, SPYI 11% EIC 11%, PBDC 9%, UTF 7%, UTG 6.3%, PFFD 6%.
right now you have two choices, open a a roth or a taxable account. I don't know if you have access to a 401K. I am assuming right now you don't. with 800 a month you and the roth depoist limit of 7000 you will have enough to open a roth and taxable account. Max out your roth every year. Most just invest in growth index funds Like S&P500 index funds. but with he deposit limit in 20 yours you would longly have about 500K available for retirment and it would not generate any meaningful income. In my opinion The best Roth investment is a high yield dividend fund like BTCI 25% yield. In 20 years you will have about 3.9 million in the acount producing 900K of dividned income a year. Yes there are some risks with a yield at 25% but it is the highest reasonable safe yield I know of. Realistically in 10 years i would start diversifying your investments in the roth. I am currently investing in QQQI 13% yield, ARDC 12%, SPYI 11%, EIC 11%, PBDC 9%, UTF 7%, SCYB 7%, UTG 6.3%, PFFD 6%. All would would make good additions to your roth when you start diversifying away from BTCI. And all are good choices for a taxable account. Once you reach the 7000 limit in the roth open a taxable account and start investing for dividends. The purpose of the taxable account is to give you a backup source of income. having a lot of dividend income is great backup in case your are unemployed or cannot work for medical reasons. I am following an investment stratagy similar to the book The Income Factory. Armchair income on youtube also follows this stratagy. Both list the funds they use or have used and that that is 100 in total. Armchair income also does detailed reviews of his investment choices. Which give you a good look at why he picks the funds he insists in.
your could sell it off slowly and reinvest the funds for dividends. Dependinding on the yield the reinvestment you could get yearly cash income generation of 50k up to about 100K of income from your investments. Cash generated in the 401K will have to stay in the 401K until you reach age 60. But you can reinvest this cash to grow your earnings. IF the stock is in a taxable acount you could replace a immergeny fund with a passive income fund. I would read the book the income factory. It is about investing for dividend income. and list 68m funds the author has used plus several example portfolios. There ia also Armchair income on youtube. he list 38 funds has has in his dividend portfolio. and does detailed reviews of some of them and other funds that may be of interest. He also interviews fund managers and did interview the author of The Income Factory. That should give you enough ideas to on how to invest the money. I am currently using QQQI 13%, ARDC 12%, SPYI 11%, EIC 10%, PBDC 9%, UTF 7%, SCYB 7%, UTG 6.3%, PFFD 6%. 5
buy when the market is down 20% to 30% at that point it may not go much lower. The market has only lost 40% in a year 3 times in the last 100years. IF possible invest in dividend funds Dividend funds generally perform better in a recession than growth funds. She good dividend funds are QQQI, SPYI, PBDC, UTG, UTF, PFF.
Utility- and Energy/MLP-related funds should do well, like UTF, UTG, ASGI, TYG, KYN, et al.
There is a lot of risk in yieldmax funds. That doesn't mean they will fail tomorrow or next year. We simply don't know how long they can keep paying these very high yields. There are a growing number of people that put in only the ammount they are willing to loose and then use the dividend income to buy less risky stocks. That is what i am thinking doing and and I suggest to do the same. Lower risk investements I use are PFFD 6% Yield, UTF,7%, UTG 7%, Scab 7%, PBDC 9%, EIC 10%, SPYI 11%, ARDC 12%, and QQQI 13%.
Most economist are expecting higher inflation due to the tariffs and with growing world economic instability I would now focus more in on passive income investments. Such as these dividend ETFs: QQQI 13% yield, ARDC 12%, SPYI 11%, EIC 10%, PBDC 9%, UTG / UTF / SCYB all with7% yield, A.nd PFF 6%. These funds in a roth or 401K will compensate for the potential lower earning of index fund so your retriemtn account will do better than one without dividends. In a taxable account then income would help protect your from unemployment.
He's asking about the business of powering those data centers, not the business of owning data center properties. I invest in that space through utilities and infrastructure funds like UTF, UTG, and BUI.
Target date funds gradually sift their investments from mostly growth to income over time. So when you retire you have enough income to cover living expenses with enough growth so that you can maintain that income over time. Ideally you want more income than you need in retirement with enough growth to insure you never run out of money. Target date funds as a result of their investment stratagy are actively managed. Most growth index funds are passively managed. Meaning more people are needed to select the income investments and trim investments that don't work out. More people means more expenses. 0.75 is actually normal for actively managed funds. while 0.3 or less is about normal for passively managed growth index funds. But if you want you could do it yours with say 50% growth index funds with the remainder invested for income from dividend funds. Many focus on bonds but the yield is often too low for that to work well. Bonds barely keep up with inflation. But excluding government bonds you can get much higher yields. 9%, UTF 7%, UTG 7%, SCYB 7%, PFFD 6%. And I do have FAGIX a bond dung that earns 5%. But the bulk of my earnings comes from yields greater than 6% With an average yield slower to 9%. My current income is about 5K a month.
time to get aggressive with the income funds on DRIP and hope its enough to turn off that DRIP in about 15 years SPYI, QQQI, JEPQ are staples of income investing. you could go CEF's with RQI and UTG or they could go full REGARD and hit up the YM Funds on DRIP for a quick snowball, i suggest AMZY, CONY and ULTY
You are doing well and have made progress. At this point I would attack the central problem you have Income. I would start investing in dividend funds like QQQI 13% yield, ARDC 12% EIC, 10% PBDC 9%,UTG 7% these funds share the ir profit with investors. so quarterly or monthly you get a cash payment to you You could over time build up passive income to slowly to handle your monthly bills. Eventually you could retire and simply live off of the income.
This is why I switched from growth index fund to dividend ETF and CEF fund. I am currently invited in QQQi 113% yield, ARDC 12%, SPYI 11%, EIC, 10%, PBDC 9%, SCYB 7% UTF 7%, UTG7%, PFFD 6%. Overall these funds produce 5K a month of income. Most goes to living expenses including healthcare I retired at 55). But 1K a month is reinvested which will help minimize inflation. When the dividends come in they go straight into a money market. fund. So I always have cash on hand. But I plan on keep a sizable amount in growth index for emergency needs, Unexpected large bills, and if needed I can harvest some growth and use that to increase my income as an inflation adjustment. The funds can also be used to replace any fund if it starts having issues.
A couple of years of savings is out of reach for most people. However historically during long bear markets dividend perform much better than growth funds. If you invest in utility funds like UTG and UTF both with a dividend of 7% they will do better when S&P500 index funds have zero or negative returns.
Personally I find I like cash dividends for income. I have minimal ammount. in government bonds because the yields are so low. Right now some my favorite investments are QQQI 13%, ARDC 12%, SPYI 11%, EIC 10%, PBDC 9% RLTY 8%, UTF 7%, UTG 7%, SCYB 7%. PFFD 6%. I am getting about 5K of income a month from these sources.
With CD the maximum yield you are likely going to find is about 6%. However with a und like QQQI you can get a yield of 13%. And there are lot of choices in the 6 to 9% ranks for dividend ETF or CEF funds. And it is also possible to find yields win the 20% range or higher. I am investing in QQQI 13%, ARDC 12%, SPYI 11%, EIC 10%, PBDC 9%, RLTY 8%, UTF / UTG / scab 7%, and PFFD 6%. And unlike CD they don't expire. meaning once you have built the portfolio the dividneds will continue to come in indefinitely. I currently get 5K a month of dividend income and I am retired.
I would not useChat AI for invesment advise. i would rather read the book The Income Factory. And youtube ArmChair income is an excellent resource. I am investing in these fund with the following yields; QQQI13% yield, ARDC 12% , SpYI 11%, EIC 10%, PBDC 9%, RLTY 8%, SCYB 7%, UTF 7%, UTG 7%, PFFD6% That work out to an average yeild of about 9%.
Just an example of what you could do with 300K. invest it in QQQI 13% yeild and put the dividneds into a money market fund. I April when you do your taxes the you will have to pay a tax on the dividneds. So use a portion of the cash to pay the tax, and then use money left over to pay off your home loan and any other debt you have. After the first year you will have an idea as to how much the dividend should be kept as cash for taxes and how much your can use immediently to pay off debt. Overall QQQI will generate about $39,000 a year pf Income before taxes. And as a further benefit QQQI takes steps to reduce the taxes you pay on the dividend. But keep in mind you will have to pay taxes on inherited money so in the end you might has about 200K instead of Also while the potential with QQQI it is just one fund and history has show you are better off using multiple funds, That way in the rare event that one goes bad the rest of your money will still be in god funds. So I have spread my money out over fund like PFFD 6% yield, UTF / UTG / scab 7%, RLTY 8%, PBDC 9%, EIC 10%, SPYI 11%, ARDC 12% and QQQI 13%. For my portfolio it generates enough to cover more than my monthly living expenses.
Most investors seek investments that earn around 10% to maximize ether growth of there protfolio Gold right now can be sold at a decent price but most of the time it isn't worth a lot and it doesn't pay a dividend. In may case I invest in dividend fund which earn me about 5K a month of income. 80% covers all of my living expenses. The rest is reinvested to grow my income Hopefully enough to keep up with inflation.I am invested in QQQI 13% yield, ARDC 12%, SPYI 11%, EIC 10%, PBDC 9%, RLTY 8% SCYB / UTF, UTG 7%, PFFD 6%
I would not expect your taxes to be zero but I don't know anything about taxes in puerto Rico. After you cover any taxes you will need to invest it. I would look at dividend investing. Over the last few years I started using growth I had to build a dividned portfolio. I retired earlier than expected and now I have 5K a month of dividend income. I have money invested in these funds PFFD 6% yield, UTG / UTF / SCYB 7%yield, PBDC 9%, EIC 10%, SPYI 11%, ARDC 12%, QQQI 13%.
I would open a taxable brokerage account. and move your mo money into it. put the money into into a money market fund. Then slowly move money into QQQI which has a dividned yield of 13%. Do not automatically reinvests the dividneds. The dividend payments should go directly into your money market fund.Eventually you will have a cash account that is bing fead by the dividends from QQQI. You could over time graually add other dividned funds. I have PFFD 6% yield, UTG / UTF / SCYB 7%, PBDC 9% EIC 10%, SPYI 11%, ARDC 12%. Any extra cash gets reinvested. Eventually you could build up the account to get enough income to cover all of your living expenses, utility bills, bills, food, clothing, car cost, insurance. and housing.
with your uneven limited income for now I would put put money in QQQI. this is a income fund with a dividend of 13%. IF you build up the money in QQQI to 100K that one fund will generate 10K a year of income that goes directly into your rothand you still can contribute 7000 per year of your taxable income. Once QQQI is at 100K you roth is basically self funded. So it will continue to grow even if you don't have money to depoist into the account. Once you have 100k in the fund you can divert the dividend from QQQI and use it to buy VTI VXUS in the end you want 50% of your portfolio in index funds like V%I VXUS. with the other 50% in dividend funds. That way the dividend funds can supply you with income while the index funds can be used for unexpected emergency cash needs, or periodically harvest the growth in the invest funds and use the money to adjust your dividned income. For the dividend portion of my retirment I am using funds like PFF 6%,UTG 7%, SCYB 7%, PBDC9%, EIC 10% ARDC 12%, SPYI 11% and QQQI. you basically want enough dividend income to cover all of your living expenses with some extra cash left over every month. And reinvest any extra money.
SPYI, JEPQ and UTG to juice your income and Qualified dividend stocks for stability and dividend growth NFA
You need to invest for pasive income. For example. you could open a taxable brokerage account and inis a dividned fund. QQQI is nice one. it has 13% yield and takes steps to reduce the taxes you pay.. IF you put the roth depoist limit in this account yearly ns ewincwar raw siciswnsa,. IN 10 years you will have $100,000 in the fund and the yearly earnings willl be 13,000 or about 1K month. IN about 20 years you will have 600K with a yearly income 75K a year6 K a month of in come. This is a simple example of what is possible. But you don't generally want just one fund generating income. IF one goes bad you could loose a lot of money and time. If you spread your money equally over 10 funds then the impact of one bad investment is only 10% of your income. It is not unusual for people to have 20 funds in a portfolio. I didn't realize this until I was in my 50s. But I have did built up investments in index funds and other growth stocks in a taxable account over the years. So I started converting that to dividned investments. suing ufund like PFFD 6% yield, UTF / UTG, SCYB 7%, PBDC 9% EIC 10%, SPYI 11%, ARDC 12%, QQQI 13% I now have 5K of income a month. 4K Covers my living expenses including health insurance while 1K a month is reinvested for inflation protection. It still will be several years before I can use my well funded retirment accounts. And I still have more assets still available in my taxable account to fix any issues with what I have and increase my income. I wish I had done this at your age! Now this extra income does does come with additional tax. So I make quarterly estimated tax payments to the IRS. But that issues comes with the benefit that I have retired early and don't have to work. Some good resource es to guid you on this is the book "The Income fFactory. And ARmChair income on your tube. Both invest this way and the book list 68 funds the author has used, and Armchair income list 38 funds. Armshair income also does detailed review of some of the funds he uses. Don't ever withdrawal money from your regiment funds and pay the penalty. It is notworkth it. But you can pause investing new money into them and use that money to build your passive inc ome. Now many people will say dividends are very risky or not worth it. But most of these comments are from people that have never invested for dividends. My dividend portfolio has had no issues other than the taxe. I am also reworking my Roth for dividend income that will not be taxed when I can use it. And moving money from my 401K into the Roth.
I am not relying on government bonds or HYSA for pasive income. Instead I am relying on dividends from funds like PFFS 6%, UTG / SCYB all with a yields of 7%, pbdc 9%, EIC 11%SPYI 11%, ARDC 12%/ QQQI 13%. All with yields higher than government bonds or HYSA. So I need a lot less money to get the passive income I need to cover all of my living expense in retirement.
ARCC has beeen paying a yield of 9% for about 20 years. They have never missed a dividend payment.and the share price is consistent. UTG is just as old and pays 7% and agin has never missed a payment. This is just an example to show that yield higher yields are possible at minimal additional risk.
I invest in dividend stocks and have been buying PFFD 6% yield, UTG 6.7%, UTF 7%, SCYB 7%, PBDC 9%. SPYI 11%, ARDC 12%, QQQI 13%
I think you’d be better off investing in utility/infrastructure funds like UTF and UTG than trying to choose single stocks yourself.
Also UTF and UTG together are a great way to get exposure to the whole utility sector fast.
>mREIT which deals with government backed loans Don't forget to add they use leverage to squeeze out that higher yield, because otherwise government backed MBS offers lowest yields. There is a utilities ETF I like called UTG that does the same, leverages against a fairly stable industry sector. But as an investor it's important to know you are bearing this risk to capture the higher than industry standard yields.
Two good funds are UTG 6.7% yield and UTF 7%yield. They both invest in utility infrastructure. Both are quite good and a couldn't decide on one so I have both. For solar I have been intermittently looking but haven't found one I like.
The problem iwht bogleheads investing is you have to liquidate stock to generate income. Which means you could eventually run out of money. The solution to the problem that preserves captial is outlined in the Book The income factory. And Armchair income on youtube also discusses this. There are funds and company stocks that pay out a portion of their profits to you quarterly or monthly as cash to you. Say you invested 100K in a fund with 10% dividend yield of 10% and it pays monthly. Every month you will,$833. Dollars a month. while you are working you invest the money back into the fund. The fund will grow. in 7 years the fund will have about 200K deposited and will pay a dividend of 1,666 every moth. Over 30 years you should also have about 1 million in ht account producing about 10K a month of incomce. If you invest for dividends in addition to your growth index funds you should have substantial income when you retire. So you live off of the dividned income . IF you don't spend all of the income you reinvest the excess money. Hopefully you can reinvest enough to keep up with inflation. IF you have a bit unexpected expense in retirement you can sell the growth funds to generate the additionally income needed. Or you could periodically harvest 4% of the growth and reinvest the money for more dividend income to adjust for inflation. I retired and now get 5K a monty of income from dividends 4K covers my living expenses. and 1K a moat is reinvested. I also have growth funds I can tap if needed. It is working out very well. Some of the funds I am investing in for income are FAGIX 5% yield, PFFD 6%, UTG 6.7%, UTF 7%, SCYB7%, PBDC 9%, SPYI 11%, ARDC 12%, QQQI 13%.
I like dividends. I would put it in QQQI. it has a yield of 13% yield and would produce about 1000 in cash a month. If you reinvested all of the dividend the funds would double in size in about 5 year. If you don't reinvest the dividend you can buy other funds. In addition to the yield the fund also takes steps to reduce the tax you payoff the dividend. So in a taxable account it can be an alternative source of income I am retired with an income of 5K a month from dividends. Enough to cover all or my living expenses. I have the following funds UTG 6.7% yield, PFFD 6% UTF 7%, SCYB 7%, PBDC 9%, SPYI 11%, QQQI 13%, ARDC 12%.
Keep in mind VDIGX empisises growth more than dividned. Small increases in dividend will cause a corresponding increase in share price. So in the long term the yield will stay about the same. If you work out the math a small increase in dividend results in a larger share price increase. The yield of the fund you are looking at is 1.7%. So to get about 5K a month of dividend income run the fund it would have to grow to about 3.5 million. It will take a lot of time to get that much money. Many invest in S&P500 index with its 1.3% dividend and many never get to 3.5 million invested. VDIGX is not really a dividend fund. It is just another index fund. IF you however invited in UTG 6.7% dividend, you would only need about 900K to get about 5K a month. Or you could invest in QQQI 13% yield and retire with 500,000 in the fund with 5K a month of income. Most people with a roth or 401K can achieve 5K a month with 10% yield in about 20 years. Many say if you are young invest in growth funds. The main reason for this is the assumption that dividends will have a lower total return the growth funds. his is true if you assume the maximum safe yield is 5% But there are a lot of funds out there that reliably produce between 5 and 10% yields And at yields of about 10% the long term potential total return is about the same as the S&p500.
I think paying off your dept is probably your best option. But there are fund that return 6% per year. For example UTG 7% yield, UTF 7%, SCYb 7%, PFFA 8%, PBDC 9%, SPYI%, ARDC 12% QQQI 13%. THESE FUNDS ARE Different Than VOO. VOO earning come from the price per share increasings. They funds I have listed don't have much price appreciation, Instead they make quarterly or monthly cash payments to you. The money will go directly into your brokerage account Now you can set your account to automatically reinvest the money into the account that generated the money or you just leave it as cash and spend it. As long as you don't sell shares you will continue to receive the money. You could move your emergency find into a prokerage account and use a brokerage money market fund to earn interest on your funds (My fidelity money market account yield 4.5%. Then you could use one or several of the funds above to continuously add cash to your emergency funds. If you have more cash than you want you can invest the money for more dividends. I am retired and I get enough money a month to cover all of my living expenses this way without selling shares.
For a good distribution yield you want a company that makes more in profit than it pays out as a diviedend. A bad distribution yield is one that pays out more than it makes. Or one that uses a loan to pay the dividend. Also don't use the yield as guid to a good or bad dividned stock. Many do this and they generally assume that if the yield is higher than the government b and rate it is unsafe. And yet you have compass OXLC that have payed a dividend it dividned for 14 years at a yield of 23% AR% And it is not hard to find companes that are struggling financially and pay a yield of 1% Basically you hav not look at the companies earning report and look at there profit and compare that to there expenses. The yield number honest tall you anythng about the stability of the company. Many buy individual stock but I like to buy ETFs that pay a dividend such as UTG6.7% yield, UTF7%, SCYB 7%, pFFA 8%, PBDC 9%, SPYI 11%, QQQI 13% ARDC 12%. I have a small ammount in individual stocks. My current income is about 60K a year. I don't automatically reinvest my dividneds. They go into a Cash account. 4K a month goes to living expenses. Mush of the rest in automatically spit up and use to buy a little bit of each fund I own. Generally I only sell shares when I don't wan the fund or stock any more.But am also moving funds from a 401k into a roth so I do pay capital gains on that. Since retiring I estimate my tax based on 401K roth convrsion ammount, may expected income, andanthing else I plan to sell. Make quarterly payments to the IRS and then in April I either get a refund or pay a little pit more.
Everyone assumes saving for retirment is the only reason to invest. A 22 year old may be more interest ed on a secure source of income she wouldn't loose if she loses a job bra has to take care of a child alone. After the maxing out a Roth I would recommend investing for passive income. in regular taxable brokerage account. Strt investing in a high yield dividned fund. My recommendation is QQQI . This fund has a 13% yield so 100K invested in this account will produce 13K of income. With dividends set to automatic reinvestment build this up. As long as she is working keep adding to the account. Keep building this up until the dividend is about 4K a year. At this point if she looses her job she can stop reinvesting the dividends and live off of the income. At this point she can stop automatic reinvestment of the dividend and divert the income for other uses. * Build up a cash reserve. * Invest in a low dividned index [fund.You](http://fund.You) same more than a million dollars this way and pay very little in taxes due to the very low dividend these funds have. * Use the cash to contribute to a roth acount. * Continue to increase the dividend income so the can retire early. * Deversify the sources of dividned income by adding funds like UTG 6.7% yield. UTF 7%. SCYB 7%, PFFA 8%, PBDC 9% ARDC 12%. Now taxes is an issue that must be addressed. QQQI not only produces income but it also taks extra steps to reduce the tax you pay in the dividend income. For the first few years you can just cover the expenses from work income because The dividend income will be small. Or you could set some of the dividends asside to as cash and then in april you will have enough to cover the additional tax. You could also estimate your tax and make quarterly payments directly to the IRS like you employer does when they give you a pay check. You might want to read the book The Income Factory. And look at the youtube channel Armchair Income. Both discuss this investment style
An option other than bonds is dividend funds like UTG 6.7%, UTF 7%, scab 7%, PFFA 8% SPPYI !!%, QQQI 13% Yields are higher but The risks are higher because they are not backed by the government. But bonds don't keep up with inflations. Dividends of 6% or higher do keep up with inflation when the dividneds are automatically reinvested. Additionally when you retire you can simply turn off dividend reinvestment and use the cash dividneds to cover living expenses.
Investing in index funds is popular because he returns are good and there is very little tax with these funds in taxable brokerage accounts. But the problem with these funds is the only way to get money out is to sell (liquidate shares to ge the cash you need. VOO and VT are both good options for this. The other way is to invest in funds that pay dividends..Dividendds are cash payments to you. You can reinvest them into the fund that generated them, Or take the cash and spend in on that you need.The down side is you have to pay taxes on the income. But the tax is only a small portion of the total dividend. So you could put the money into a money market account or HYSA and then later withdrawal the ammount need for the taxes and then reinvest what is remaining. Fund you could use for this are UTG 6.7% yield, UTF7%, scab 7%. PffA 8%, SPYI 11% QQQI 13%, and AARDC 12%. My advice is do both VOO / and VTand then your selection of dividned funds. Set up two custodial accounts. one for each child with similar investments. I would also recommend reading the book The Income Factory.
Invested in UTG at 112p and sold at 1285p my step dad did the research I just gave him the money, he made waaay more than me though
What I want is find a company that builds and operates teh farms and the electricity generated pays the dividned. But I haven't found one. The best I have been able to find is a general utility fund UTG with about a \^% yield. Using a fund for dividneds like this is a lot less work using a lot less money.
SCHD is a farily low fee. UTG / JEPI are higher for sure. SCHD fee would have served you much better than holding individual stocks such as T PFE INTC where capital deprecation gives you a net loss. Depending on when you bought VZ it's most likely flat or down for most people, where as SCHD is up in addtion to the yield. There is no guarantee that SCHD will continue on that path, but again main point is the diversification. You hold 3-7 diviend stocks - 1 or 2 go south, your dividends don't even cover the captail losses. In the case of INTC the dividend is suspended. I'm sure SCHD has had some "losers" but in a pile of 100 it won't stand out and they can just cycle it out for something else.
I used to have a several dividend paying stocks. But I decided to dump the ones which were mostly flat performing and keep the ones that had captial appreication. Instead of picking individual stocks I went with an ETF called SCHD. It holds roughly 100 stocks and yields about 4%. Over time the captial has appeciated as well. Keep in mind the fund is managed and not tracking any index, so in sense you are relying on the managers to do a good job. My thought process was many high yield diviend stocks are very high debt and operating and distributing solely on cash flows. Any hit the cash flows could be detrimental to the bussiness and the stock. So why risk captial used for dividend income on few to several companies, when I can get a more diversified basket? Other dividend income I have is from ETF's UTG and JEPI. They both yield roughly around 7%. UTG is a focused on utility stocks such as energy and telecommuncations. It pays a higher rate because they use some leverage with those same companies. But this is about as safe as leveraging gets. JEPI primarily sells covered calls like many other covered called based ETF's. But unlike most others, it has other activities to help mitigate risks and protect capital. If you compare it to pure covered call ETF's, it seems to preserve capital much better - but at lower yield. If you want to review pure covered call ETF's check out SPYI and QYLD.
🥭 went all-in PF UTG with 27o and everyone called.
UTG is a leveraged fund. I initially bought it (Not in it now) due to yield. So, yes to your question. I like their website too! \[yes, i'm a sucker for easy explanations\] I didn't consider the expense ratio. Qualified dividends too. I'd like to buy it again in the 24-26 range. But I sense the market sell off may be ending after today. Maybe just a technical rebound and go lower later. Not sure. pre-market shows 28.60 now. I'm a capital preservation investor...don't like volatility. Thus - why I'm up for the year. I'm a turtle. Slow & steady - usually. WIth bouts of speed. (Greed?) I would start buying @ 26 or so.
Super high expense ratio of 2.23% though - the broad market funds like VOO have 0.03%. Interesting, thanks for this though, I am going to explore more utility funds. VPU has an expense ratio of .10% and tracks SP500 utility companies. IDU has a .4% expense ratio - how come you go UTG instead of these others? Is it the higher dividend yield?
SP500 has over 100 years of data that supports a 10% average annual gain. Of course the actual return can vary sharply from year to year, including being in the negative. But let's say you get exactly 10% every single year - that doubles your money roughly every 7 years. You will have tax liability only on the dividends it pays, but not on the equity until you sell it. You are relying primarily on capital appreciation for the gains. Currently interest rates are yielding around 4%. For the past 25 years, 4% is on the high side, so i wouldn't have confidence the rate will remain at 4% or higher in the long run. But let's assume it does; it will take about 18 years to double your money at 4% growth. You will have tax liability on the interest gains each year. There are some funds/ETF's that are somewhat staple and yield around 7%. One example is UTG which focuses on utilities stocks; but using additional levearge on them. Most utilities are stable as they have a regional monopoly. Another example is JEPI. This ETF primarily uses covered calls to generate income for distribution but other protections as well (there are other ETF's which are purely covered calls). Growing at 7% annualy wil double your money in roughly 10 years. You will be taxed yearly on the dividends. You are relying primarily on dividends returns for gains, but have potential risk of captial depreciation. You don't have to put everything into a single bucket (and you really shouldn't).
I'd move stuff like PFE/CVS/MO/T into ETF - something like SCHD and/or UTG. Poor growth performance on those individual stocks and crazy debt load on some of them. Why risk the capital value on them for the juicy dividend yield (I assume this is the reason you hold them), when you can similar yield with diversification?
ARCC which is a high dividend yield BDC, a high dividend utilities closed end fund (UTG) and COKE
UTG, utility ETF and good yield of 6.75%
I hold UTG, a basket of utility stocks. I highly recommend it.
UTG and in the DRIP program has done well for me. It's a secure stock though and dividend based. Take that for what you will.
Preferred stock with high dividend yields, bonds, high yield junk bond etfs with long track records, utility companies, BDCs, materials companies are all defensive investment approaches that work for different reasons. Most of these trade within a narrow range so they hold their value in a down market plus have high enough dividends that you can still get growth if you reinvest them. These are especially good in an IRA. They are defensive investments that usually outperform bear markets. Because I am relatively close to retirement I have one of my Roth IRAs entirely invested like this (in UTG, ARCC, MCI, and PTY). It still did over 10% last year. It is unglamorous but will likely double in value over the next 8 to 10 years and then provide significant tax free cash flow from dividends in retirement. The last chapter of investment requires different strategies than the earlier ones because you don't have enough time to recover from a black swan event if you aren't diversified between offensive and defensive strategies.
In poker thats called being results oriented. I dont care if you bagged a 5k pot with opening with 10/7o UTG. A bad bet is a bad bet regardless of the end result.
Working great. I locked in a 9% yield on UTG and UTG and it has appreciated significantly. I go with more of the utility close ended funds for the consistent monthly income and mild price appreciation.
I recently purchased UTG. Reasonable volatility, 7 percent return, steady dividends. I also subscribe to YT channel 'Armchair Income' for good insights to balance income and risk.
As many Redditors have stated already you can't go too wrong with VOO, VT and/or VTI. If a market disaster happens you'll find that nearly all funds and stocks will have the same trend lines. Personally, I'm a fan of dividend paying funds or stocks as well. Because in most cases, the dividend paying companies and funds continue to pay unless they hit some financial dire straits. Check out [https://www.buyupside.com](https://www.buyupside.com) - Dividend Aristocrats which will show companies that have paid dividends year in and year out for 25 consecutive years or more. That site also has good AI stock information. Note that technology changes quickly so expect AI/Biotech to be volatile. I personally enjoy monthly paying dividends to smooth the income stream. Most companies pay quarterly. Closed End Funds frequently pay monthly. I use [https://www.cefconnect.com](https://www.cefconnect.com) to evaluate Closed End Funds. Funds I have are: CII, CSQ, BST - more tech focused but pay a dividend monthly. UTF and UTG - more utility focused and should do better in a lowering interest rate environment BME - Pharma focused fund Everything has risk. There will always be ups and downs.
If I miraculously sold everything a day before a 20-30% market crash I’d buy O, MAIN, MSFT, AMZ & UTG BRK-B. And I’d be happy AF. All are high quality, 3 decent, diverse, dividend payers, 2 growth companies, 1 safe “market proxy” all of which gives me good balance and some diversity. Also all 6 have wide moats, are best in class, always trade at a premium, and rarely if ever “go on sale”.
im 41 collecting dividends monthly, simplify your dividend allocations, suggesting: SPYI, JEPQ, UTG, DIVO, O, and a very small amount 25k of AMZY your selection is way too heavy in REITS and that didnt go well for the last 2 years. SCHD is too slow for what you are wanting to achieve.... go heavy into SPYI and JEPQ consolidate your Reits into O
2.23% expense ratio on UTG. WOW.... thats high
UTG, UTG and BUI are my biggest utility holdings.
UTG pays $0.19 a share every month. It comes out to about an 8.5% annual yield.
Make your money grow. Do smart dividend investing. If you invest in Apple, Microsoft, Tesla, etc.. Those are growth stocks. One day 200 a share and next 150 or 500. Do you sell at 500? No, you panic and sell when it hits 75 and all the while you haven't gained anything. Your money is not growing. I recommend tax-advantaged dividend income, and capital appreciation stock, such as UTG at 8.56% Monthy return or UTF at the same rate of return. If you buy 100k of UTG at 26.50 = 3,774 shares paying monthly 717 and over the course of a year would be 8,600 and in 10 years you would double your investment. There is some growth involved as UTG has grown 44% and has [increased dividend payouts](https://www.nasdaq.com/market-activity/stocks/utg/dividend-history). Or you can hope your investment in the Big 7 continue to grow and that someday you might cash out ahead.
UTG. Capital appreciation plus a 8-9% dividend
Ah, so you're just losing to the S&P 500 with UTG and single in your 40s then, so much better. At least you're not 70. You have that going for you.
>You are wrong on every claim you make. Does the S&P 500 not have higher returns than UTG over the last ten years? Oh yes, it indeed does. And less fees too! Are you not single in your 40s? You ARE! Hmm.. it's almost like everything I said was objectively and provably true. And yes, I love making fun of losers like you online so I have a lot of posts.
If you follow the thread it is obvious I was referring to UTG. If you received 19 cents and nothing deducted for expenses, you're confirming the distribution yield did not include the expense ratio, proving my initial point.
I could, but in your post you don’t include the name of the CEF. I trust the the CEF companies and my own returns which confirm that expenses are included when reporting distribution yield. If it is UTG that you ran numbers on, I received a distribution of .19/share at roughly a 8.14% Nothing was deducted for expenses confirming the email I received from Reaves. Expenses are accounted for prior to announcing the distribution yield.
The expense ratio is already factored into the yield. For detailed info on UTG and other CEF’s, go to cefconnect
It’s weird because my broker has net expense ratios and management fees listed for my other stuff, but there’s not even a space for them for UTG.
You could look at UTG utility etf. It has an 8.27 yield, pays monthly, and each share is $27.42 right now. I think it’s a good deal, and that way, you don’t hand to fool around with a lot of individual stocks, some of which may not do so well.
You could look at UTG utility etf. It has an 8.27 yield, pays monthly, and each share is $27.42 right now. I think it’s a good deal, and that way, you don’t hand to fool around with a lot of individual stocks, some of which may not do so well.
You could look at UTG utility etf. It has an 8.27 yield, pays monthly, and each share is $27.42 right now. I think it’s a good deal, and that way, you don’t hand to fool around with a lot of individual stocks, some of which may not do so well.
You could look at UTG utility etf. It has an 8.27 yield, pays monthly, and each share is $27.42 right now. I think it’s a good deal, and that way, you don’t hand to fool around with a lot of individual stocks, some of which may not do so well.
UTG min raises. UTG +1 calls. Hero on the button with AJ, pot-sized 3-bets. Both players call. I miss the flop. UTG donk bets, UTG+1 calls. I give up on the hand. They get to river and turn over their cards. A7 offsuit, and K6 suited. whatthefuck.jpg
5/10 NLHE SB: 40bb BB: 100bb UTG: 100bb UTG+1: 100bb UTG+2: 100bb MP1: 100bb MP2: 100bb -> Hero Cutoff: 200bb Button 400bb Hero has KJ suited UTG straddles UTG+1 calls Hero raises to 7bb button threebets to 21bb UTG calls UTG+1 folds Hero folds... did I make the right play? Felt like a marginal position. the only reason I'm still thinking about the hand is because I would've flopped a flush. Button won with a set of jacks
PDI UTG DOW LYB MSFT GOOG TSLA (just kidding LOL - "Prosecute/Fauci" jesus christ)
UTG ETF, DUKE Energy, Southern Company, Pacific Gas and Electric, Con Edison