KRG - John's January 2025 Retirement Income Update: Seven Dividend Increases
2025-03-19 09:00:00 ET
Summary
- For 2025, we are moving away from CDs and equities, focusing on preferred shares due to their attractive yields and lower risk.
- January saw dividend increases in seven holdings and strategic trades in both Traditional and Roth IRAs to optimize positions and reduce cost basis.
- Income forecasts for 2025 show a decline in monthly income, but this is common at the start of the year as dividend payment dates change and capital allocation settles.
- Investors should balance opportunity and defense strategies amidst market volatility.
This article is the final component of John and Jane's forecasted income review for 2025. The goal of doing this is to set conservative expectations of what income generation will look like for the year, which gives us a better perspective of ways that we may choose to alter capital allocation. Some of the compelling themes of 2025 include:
- A move away from CDs, with the yield curve completely changing over the last six months. Previously, short-term CDs offered 5%+ yields for short-term holdings (3 months to 12 months). See the image below for additional perspective.
- A move away from equities, with the market sitting at record highs.
- Increasing exposure to preferred equities, which have continued to offer above-average yields because of the discount to coupon value.