Displaying items by tag: income

Investors are preparing for significant shifts as U.S. elections and potential rate cuts approach in late 2024. While many have established their core holdings, adding targeted investments could help capture emerging market opportunities. 

Dividend-focused strategies offer both additional income and insights into a company's growth outlook; robust dividends may signal confidence, while lower payouts could suggest caution. The T. Rowe Price Dividend Growth ETF (TDVG), for example, invests in stocks with strong financials and dividend growth potential, leveraging active management to achieve higher returns. 

Over the past year, TDVG has returned 17% and averages 13% annually since its 2020 inception, using a strategy that evaluates balance sheets, cash flow, and competitive positioning. 

Finsum: Investors looking to pick up equity exposure and income this fall should be eyeing up dividend ETFs.

Real estate has long been a cornerstone of wealth creation, but the responsibilities of being a landlord can be daunting. For those seeking passive income without the hassle, REITs like Realty Income Corp. offer an appealing alternative. 

Known as “The Monthly Dividend Company,” Realty Income has a history of reliable payouts, currently offering a 5.59% dividend yield. However, REITs do tend to fluctuate more than underlying rents.

Investors looking for more direct involvement without the landlord duties might consider platforms like Arrived, which allows fractional investments in rental properties, combining monthly income with potential property appreciation. Both options provide avenues to invest in real estate without the headaches of property management.

Finsum: As interest rates fall yield seekers might consider real estate as an option to generate income, with fluctuations in equities markets. 

Real estate took one of the hardest hits in any submarket due to rising interest rates but as certainty starts to look a little clearer REITs pose to make a comeback.  Several real estate investment trusts (REITs) recently received analyst upgrades, indicating substantial potential upside.

Equity Residential, which owns numerous apartment communities, was upgraded by Piper Sandler from Neutral to Overweight with a new price target of $80. Acadia Realty Trust was upgraded by JP Morgan from Underweight to Neutral, with a price target of $18. Finally, Americold Realty Trust Inc., specializing in temperature-controlled storage, saw upgrades from both Barclays and Scotiabank, with price targets set at $26 and $30, respectively. Digital Realty Trust (NYSE

 Despite various market conditions, these REITs show promising growth prospects according to recent analyst evaluations. 

Finsum: Investors can also look to yield as an important factor and get income exposure through REITs. 

Since 2012, high-yield income stocks and ETFs have declined in value as rising interest rates have made bonds, Treasury bills, and CDs more attractive. However, buying high-yield ETFs now could be advantageous if interest rates decline in the future. Notable high-yield options include the JPMorgan Equity Premium Income ETF (NYSE: JEPI) and the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ). Both ETFs use equity-linked notes (ELNs) tied to covered calls and have low expense ratios of 0.35%.

JEPI comprises 130 equities and routinely writes monthly calls on the S&P 500, yielding 7.5% annually. In contrast, JEPQ includes 98 equities and writes monthly calls on the Nasdaq-100, yielding 10.9% annually due to the Nasdaq 100’s higher volatility.

 Both ETFs offer steady monthly payments that are higher and less volatile than those from other dividend-focused ETFs, despite limited gains in strong markets due to their covered call strategies.

Finsum: As interest rates fall underlying bond prices could help boost the performance of these funds. 

While you’ll find salespeople peddling the pros of annuities littered across the industry and their detractors in equal force, but in reality, index annuities, under specific circumstances, can be a viable option for a steady retirement income. Here are three top providers:

• MassMutual stands out as the top annuity provider with high ratings and a broad range of annuity types, making it a reliable choice for straightforward annuity products.

• Athene, known for its no-charge income and death benefit riders, offers a variety of annuities, including fixed and index-based options, suitable for those seeking guaranteed retirement income. 

• Fidelity Investments, partnering with several insurance companies, provides a wide range of annuities and offers the Fidelity Personal Retirement Annuity, notable for its low fees and no surrender charges. 

Each of these companies caters to different investor needs, from those desiring straightforward solutions to those looking for comprehensive investment and annuity integration.

Finsum: Index annuities in particular can be a goldilocks solution to income investments during higher volatility.