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Investing/Strategies / Retirement Investing
|Subject: Re: Generating Income||Date: 8/5/2013 1:28 PM|
|Author: BruceCM||Number: 72727 of 77552|
Your holdings look pretty good, with a couple of differences from my approach that I consider fine points.
I've quit holding high risk. Maybe I'm just conservative by nature, but a looooong flat $.25 dividend from NYCB since April of 2004 and an earnings POR in the high 80% range is just a bit too much risk for me for a 6.5% CY. I suppose the good news is that NYCB didn't cut their dividend during the 08/09 decline....and this is good....but still, for this kind of long flat yield, I think I'd stick with preferred stock.
And I try to limit my income from any single stock to no more than 3%. I do this because it is really the only way to hedge the risk of dividend cuts. This max % of income could certainly be increased for an income ETF like JNK.
But I agree with your approach and have been using it for many years. And, yep....you've got to teach yourself to quit looking at the share price and pay attention to what is really important...the ability of the security to sustain and (usually) grow its distributions over the years ahead.
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