ET - Avoid These Mistakes And Boost Your Portfolio's Income!
2024-06-16 10:15:00 ET
Summary
- Income investing is a delightful journey to financial independence.
- But this technique and the journey aren’t without pitfalls.
- We discuss seven fatal mistakes to avoid so you maintain your income sustainably recurring through market gyrations.
Co-authored with Hidden Opportunities.
The financial markets are one of the greatest wealth generators in human history. Globally, there are thousands of public companies that we can invest in to participate in their growth and prosperity. Outside individual companies, there are thousands of diversified securities in the form of index funds, mutual funds, ETFs (Exchange-Traded Funds), and CEFs (Closed-End Funds). There are plenty of strategies, techniques, and methods that we can adopt so you secure returns from the markets.
One such method is the Income Method, which we have adopted in our private Investing Group. It is an investment strategy that focuses primarily on generating regular income from investments, typically through dividends and interest payments. Even within income investing, we prioritize those that offer high yields, either through the structural design of the securities or through market prices being at deep discounts against the intrinsic values. Some notable types of securities that match our style include:
Real Estate Investment Trusts (REITs): REITs own, operate, or finance real estate assets and have no income tax obligations at the corporate level. Instead, these companies are required to distribute at least 90% of earnings to shareholders in the form of dividends, often resulting in very high yields. Realty Income ( O ), NNN REIT, Inc. ( NNN ) are notable equity REITs with decades of delivering growing dividends to shareholders....
Avoid These Mistakes And Boost Your Portfolio's Income!