Posts by Fly High Investing

When it comes to dividend investing, the debate today is usually between Dividend Growth and High Yield strategies which often sparks discussion among seasoned investors. Dividend Growth focuses on companies that gradually increase their payouts over time, but these increases usually start from a relatively low base. In contrast, High Yield strategies target companies offering…

Leverage has a significant impact on the dividend stability of Regulated Investment Companies (RICs), such as Real Estate Investment Trusts (REITs) and Business Development Companies (BDCs), which are required by law to distribute at least 90% of their taxable income as dividends to shareholders. This obligation creates both opportunities and challenges in maintaining dividend stability,…

Interest rate sensitivity significantly impacts the performance of high-yield dividend securities, including Real Estate Investment Trusts (REITs) and Business Development Companies (BDCs). When interest rates rise, these companies often face increased borrowing costs, which can reduce their profitability and ability to maintain dividend payouts. As a result, investors might shift their focus to bonds and…

In the context of REITs and BDCs, high-quality assets are those that consistently generate stable cash flow, have a low risk of vacancy or default, and are located in prime, economically resilient areas. The quality of these underlying assets directly influences the entity’s ability to generate consistent income, which is the foundation of stable dividend…

Cash flow analysis is a critical component in evaluating dividend-paying investment structures, as it provides insights into a company’s ability to sustain and grow its dividend payments over time. For investors focused on income generation, understanding the cash flow of a company is essential, as dividends are paid out of cash flows, not earnings. A…

When evaluating dividend stocks, many investors are drawn to the allure of a high dividend yield. However, focusing solely on yield can be a dangerous strategy. A high yield might seem attractive on the surface, but it could be a sign of underlying issues, such as a declining stock price or a company struggling to…

When it comes to consistent income generation, few strategies can match the power of monthly dividend stocks. Unlike traditional quarterly dividend stocks, monthly dividend stocks provide investors with regular cash flow, making them an ideal choice for those looking to supplement their income or especially when you reinvest those dividends for compounded growth more frequently.…

When it comes to building a dividend portfolio, the choice between Dividend ETFs and Individual Stocks often boils down to control versus convenience. Dividend ETFs offer the convenience of instant diversification, spreading your investment across multiple dividend-paying companies, which can reduce risk. However, they often come with management fees and less flexibility, as you’re at…