1) Our portfolio of 50 stocks has sustained a dividend yield greater than 11% a year for over 3 years. Most "high-yield" ETFs pay between 3% to 7%. The difference in yield between these so-called high-yield portfolios and our portfolio is enormous. More importantly, the companies in our portfolio pay their dividends out of earnings. This means the dividends generated by the portfolio are a dependable source of income.
2) Our method of analyzing earnings ensures a company’s dividends are sustainable. We use IBES (Institutional Brokers' Estimate System) adjusted actual earnings in analyzing past performance because adjusted earnings are the best indicator of earnings from underlying operations.
3) We also include forecast earnings going out 6 months to help ensure our future dividends are safe. We use IBES consensus estimates of adjusted earnings in our analysis of a companies ability to sustain its dividends going forward.
4) Most of the stocks in the portfolio are either REITs (real estate investment trusts) or BDCs (business development companies). REITs and BDCs don’t pay corporate income taxes so they pay higher dividend yields than other types of companies.
5) REITs and BDCs by IRS rules must distribute at least 90% of their earnings to shareholders. That means a company can't suspend or even cut it's dividends below 90% of earnings. Because REITs and BDCs don’t pay corporate taxes and are required to distribute at least 90% of their income to shareholders they're ideal for the dividend income investor who desires a reliable high-yield income stream.
6) All the stocks in the portfolio can be held in tax-deferred accounts such as 401Ks and IRAs. We don't invest in MLPs (master limited partnerships) in order to avoid complicated K1s. If held in a tax-deferred account, dividends generated within the account are also tax-deferred.
7) A subscription to Fly High Investing costs only $99 a year. Compare this to the cost of a financial advisor. Most advisors charge $1000 to $3000 to build a portfolio. For ongoing advice you could expect to pay a monthly retainer of a few hundred dollars. Most financial newsletters cost several hundred dollars a year. But the most important reason you should subscribe is because we believe our portfolio is the best path to financial freedom and a secure retirement you can find at any price.