CA - How To Build An 8% Yielding SWAN Portfolio With 10 Blue Chips

2024-05-10 07:00:00 ET

Summary

• High-yield dividend investing is a popular retirement strategy for its steady income, lower volatility, and potential to outperform the market.
• JPMorgan Equity Premium Income ETF offers an 8% yield but lacks dividend growth. Over a standard retirement, inflation is expected to be more than 100%.
• By combining JEPI with a portfolio of 10 blue-chip stocks yielding 7%, investors can achieve an 8% yield with stronger long-term dividend growth potential.
• These 10 blue chips yield 7.3%, are 19% undervalued, are growing 6%, and have 32% total return potential in the next 12 months.
• The combined 8% yielding portfolio has 3% consensus long-term dividend growth potential, keeping ahead of inflation and potentially generating 11% total returns, better than SCHD's (current high-yield gold standard ETF) 10% long-term returns.

High-yield dividend investing is a popular retirement strategy, and it's easy to understand why.

Are you tired of worrying about interest rates, the Fed, geopolitics, US politics, or the economy? Wouldn't it be fantastic if you could buy great companies, collect low-risk and steadily growing dividends, and ignore stock market volatility entirely?

Nobody can predict interest rates, the future direction of the economy, or the stock market. Dismiss all such forecasts and concentrate on what's happening to the companies in which you've invested." - Peter Lynch

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