1) Our portfolio of 50 stocks has averaged a dividend yield and total return greater than 10.5% a year for 4 years. Most high-yield funds pay between 3% to 7% a year. The difference in yield between these funds 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 reliable and sustainable 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. We also include IBES consensus estimates of forecast earnings going out two quarters in our analysis to help ensure our future dividends are safe.
3) Most of the stocks in the portfolio are either REITs (real estate investment trusts) or BDCs (business development companies). REITs and BDCs must distribute at least 90% of their earnings to shareholders in the form of dividends. In doing so they are exempt from paying corporate income taxes, avoiding double-taxation. For these reasons they're ideal for the dividend investor who desires a reliable high-yield income stream.
4) 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.
5) A subscription to Fly High Investing is just $99 a year. Most advisors charge hundreds, and some charge thousands of dollars a year to build and manage a portfolio. Most actively managed funds charge expensive management fees, which increase with the value of your portfolio. For investors who like to do their own research, free information abounds on the internet. The problem is how to sort through the mountains of material to find the relevant information for their investment objectives. For the dividend investor we solve this problem by providing all the information needed to build and manage their portfolio. If you agree with us that investing in high-earning, high-yield dividend stocks is the fastest and most secure path to a lifetime of financial freedom, you should subscribe to Fly High Investing.
Chinese philosopher Lao Tzu is famously quoted as saying “The journey of a thousand miles begins with one step.”
Take the first step today and begin your journey to financial freedom.