OXLC - Passive Income From Investing: Ideas For Retirees

2024-06-01 03:28:31 ET

Summary

• Income investing can be a viable strategy for generating passive income in retirement, depending on individual goals and risk tolerance.
• Closed-end funds (CEFs) can offer high-yield income and unique buying opportunities when mispriced by the market.
• PDI, OXLC, OCCI, and ASGI are four CEFs that have consistently delivered high-yield distributions and potential for capital appreciation.

As someone who enjoys investing in the stock market and playing the game of behavioral finance, I find it amusing how some of my fellow analysts, authors, commenters, and even pundits who are supposedly experienced investors often dismiss the notion of income investing. They claim that companies that pay dividends do not offer investors a chance to earn “more money” because the upside (capital gains from rising stock price) is limited. Then are those who feel that any “high yield” dividend (take your pick on the definition of what amounts to high yield, over 5%, 8%+, 10% or more?) indicates extreme risk and those stocks should be avoided at all costs. The fact is: it depends . It depends on your investment goals, your time horizon, your tolerance for risk, etc....

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