Want to live off high-yielding dividend stocks and passive income funds? Today's video shares how I'm yielding 23.5% on a dividend stock I bought in 2009. Then, I share three bond funds I just bought. Most importantly, I review The Income Factory by Steven Bavaria, the playbook for high yield investing.
#dividend #investing #highyield
Timestamps:
0:00 INTRODUCTION
0:17 ALTRIA (MO) DIVIDEND STOCK - I'm yielding 23.5% on-cost.
1:25 When I buy a stock, I look at the money invested as "gone forever", I never plan to sell.
3:22 ANNOUNCEMENT: Corner Patreon Zoom Book Club (See pinned comment.)
4:51 SEGMENT 1: MY PERSONAL BOND PORTFOLIO - Inspired by The Income Factory Approach (adjusted for my level of risk tolerance)
5:22 I bought three bond ETFs (in addition to my Treasuries): VCLT, MUB, SCHO
6:35 I intend to use all of my bond interest to pay living expenses now.
10:02 Fun Quote: "I've Never Seen This Happen Before."
11:37 Are we seeing something we have never seen before in bonds?
12:10 Key Point: I only like to buy investments that hold their value or grow over time.
13:47 SEGMENT 2: THE INCOME FACTORY BOOK REVIEW (My Interpretation of Steven Bavaria's Strategy)
14:50 POINT 1: Equity-like returns with fixed income investments
17:05 POINT 2: Investing for cash flow, for passive income. It's a factory of income.
17:52 POINT 3: An income-focused strategy makes it easy to weather a down market.
18:15 My Core 4: I'm not seeing volatility in my equity strategy, at least in this market.
19:55 POINT 4: High-yield investments get an unfair bad reputation.
20:50 He's not so sure high-yield is riskier than equity investing at large.
22:04 Equity, typically, has the most risk.
22:25 POINT 5: Equity investors have credit risk too.
23:07 Critique: I believe "Core 4" equity investments have less risk than debt investments in lower-grade companies.
24:44 I believe there is a sub-segment of equity that is such high quality that it carries less risk than Bavaria's investments.
26:17 POINT 6: An Income Factory strategy is not inherently riskier than the average investment portfolio.
28:20 POINT 7: Dividend stock investing challenge - we need the company to grow!
29:37 POINT 8: The Income Factory does not require dividend growth.
30:56 POINT 9: The Income Factory strategy is retirement account-focused.
31:41 POINT 10: There are Income Factory strategies that work better in non-retirement accounts.
32:48 Equity CEFs
34:25 POINT 11: Select great fund managers.
34:38 POINT 12: Income Factory is an attitude.
36:30 SEGMENT 3: MY PERSONAL TAKEAWAYS FROM THE INCOME FACTORY
36:31 POINT 1: I have a new contingency plan!
38:10 POINT 2: I have concern about this being a radically new environment. Many Income Factory assets are declining in value.
38:45 MY WATCHLIST: MCI, FPF, CHY
41:15 POINT 3: I like the debt strategies, even if they are less tax-efficient.
41:49 POINT 4: I like the concept of Senior Loans
44:30 POINT 5: A lot of The Income Factory funds have been trending down in underlying value.
46:33 POINT 6: "Forever" investor
47:25 POINT 7: Are the rules changing?
48:08 POINT 8: Thoughts on XYLD.
49:49 DISCLOSURE AND DISCLAIMER
DISCLOSURE: I am long Altria (MO), Starbucks (SBUX), Johnson & Johnson (JNJ), PepsiCo (PEP), McDonalds (MCD), and Pfizer (PFE). l I own these stocks in my personal dividend stock portfolio. I’m also long Treasury Bonds, VCLT, MUB, and SCHO. Last, I have MCI, FPF, and CHY on my watchlist (I may buy these).
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