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% a year. 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) Most advisors charge thousands of dollars a year to build and manage a portfolio. For stock pickers who like to do their own research and have a lot of time, free information about investing abounds on the internet. The problem is how to sort through the mountains of material to find the information most appropriate for your investment objectives. A subscription to Fly High Investing solves this problem by providing you a portfolio of 50 of the highest yielding sustainable dividend stocks on the market, a performance section if you want to diversify an existing portfolio and a suggestions section to help you maximize returns. So if you agree with us that investing in ultra-high performance dividend stocks is the fastest and most secure way to financial freedom and retirement security, you should subscribe to Fly High Investing.