Posts by Fly High Investing
What Is the CECL Standard and Why Should Dividend Investors Care?
The Current Expected Credit Loss (CECL) standard is an accounting rule that affects many banks, mortgage REITs, business development companies (BDCs), and other lenders. While the name sounds technical, the concept is actually straightforward, and understanding it can help dividend investors better interpret a company’s earnings and financial strength. Before the CECL standard was adopted,…
Read MoreWhy REITs and BDCs Can Be Powerful Income Investments
If your goal is to build a growing stream of passive income, Real Estate Investment Trusts (REITs) and Business Development Companies (BDCs) deserve a closer look. While these investments are often associated with retirement accounts, they can play an important role in many income-focused portfolios. REITs and BDCs are unique because federal law generally requires…
Read MoreShould You Manage Your Own Dividend Portfolio?
Professionally managed mutual funds and exchange-traded funds (ETFs) can be excellent choices for investors who prefer a hands-off approach. They offer instant diversification, professional management, and the convenience of having investment decisions made on your behalf. For many investors, these benefits make mutual funds and ETFs an attractive way to build long-term wealth. However, investors…
Read MoreHigh-Yield Dividend Stocks vs. Dividend Growth Stocks: Which Is Right for You?
High-yield dividend stocks and dividend growth stocks represent two distinct investing strategies, and understanding the difference can help you build a portfolio that aligns with your financial goals. High-yield dividend stocks are designed to generate substantial current income. These companies typically distribute a larger portion of their earnings to shareholders through dividends and are often well-established…
Read MoreWhy fear the cycles of Fear and Greed?
Before we begin our discussion of how market downturns benefit income investors, let’s look at what causes downturns in the first place. As everyone knows, the stock market never behaves rationally. This is due to several factors. New information arrives constantly and the macroeconomic environment changes frequently. Further complicating the problem is about 70% of…
Read MoreDRIP or Cash Splash: Mastering the Art of Dividend Reinvestment
When it comes to reinvesting dividends, there are primarily two strategies to consider, each with its own set of advantages and drawbacks. The first and most widely used method is known as a Dividend Reinvestment Plan (DRIP). A DRIP automatically channels your cash dividends back into the stock that generated them, effortlessly acquiring additional shares…
Read MoreWash Dumb Money Down Wall Street’s Drain
I have a unique investment proposition to discuss with you. I’m interested in acquiring a car wash business, but currently lack the necessary funds. I’m seeking financial support from you to make this purchase, with the understanding that I will manage the business and retain all profits. While there’s a possibility of selling the business…
Read MoreWhy Earnings Fix Everything
When investors think about risk, they often focus on stock price volatility. But short-term price swings aren’t always the greatest risk. A company that consistently earns money is generally in a much stronger position to survive difficult economic conditions, support its dividend, and continue creating value for shareholders. Many investors rely on index funds because…
Read MoreDividend Investing at Fly High Investing
Over the course of his career, Mike Edens from Fly High Investing crafted a successful career path. During his tenure as an airline pilot, he anticipated a potential decline in income upon retirement. This prompted him to strategize ways to generate revenue from his portfolio without resorting to liquidating its assets. This contemplation led him…
Read MoreWhy REITs and BDCs Can Pay Such High Dividends
One of the most common questions we receive is why the Fly High Investing portfolio is built primarily from Real Estate Investment Trusts, or REITs, and Business Development Companies, known as BDCs. The answer is surprisingly simple. These companies were specifically designed to pass most of their earnings directly to shareholders, making them uniquely suited…
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