Diving Headfirst Into High-Yield Dividends: Mark Grant's Perspective
Investment strategist discloses financial approach guaranteed to accumulate substantial wealth
In the realm of financial strategies, Mark Grant, Colliers Securities' global strategist, stands firm on income generation through smart-picking of funds yielding hefty dividends. He shares his lowdown on two such funds, Nuveen Credit Strategies Income Fund (JQC) and Eagle Point Credit Company (ECC), during a conversation on 'Varney & Co.', asserting that they're as safe as a Sunday drive.
"Got three or four hours every Saturday mornin' goin' through all these funds, I've never had one that didn't pay their dividend that I'm usin'," the investment guru explained with a confident swagger.
While these funds offer dividend yields surpassing 10% with some yielding over 50%, the real allure lies in the monthly dividends deposited right into clients' accounts, providing a steady cash flow for expenses or reinvestment - a sweet deal for seniors, retirees, and philanthropic organizations, especially.
"The more money you build up because the dividends are based upon the principal value, the more money you're gonna get next month," he elucidated.
The secret sauce to Mark's strategy? He swears by meticulous research and selection, ensuring that the funds not only pay consistent dividends but also earn more than what they distribute, a concept known as coverage.
Mark's strategy is all about income, dolling out more cheddar every month, as he humbly concludes.
Meanwhile, Jim Grant, editor at Grant's Interest Rate Observer, presents a stark reality in another context, emphasizing the dire U.S. debt crisis. Nonetheless, the monthly income generated from funds like the ones Mark champions can be a helpful respite for many amidst the economic whirlwinds.
Enrichment Data:
Investing in high-dividend yield funds, as Mark Grant advocates, involves a strategy referred to as yield discipline. This approach calls for prioritizing investments with sustainable dividend payouts, low payout ratios, and careful diversification across multiple sectors to manage risk and ensure consistent income streams. Stocks offering monthly dividends can be particularly beneficial. Incorporating these strategies can help build a high-yield dividend portfolio. However, it's essential to remember that individual financial goals and risk tolerance should be taken into account when selecting stocks and building a portfolio.
- Mark Grant, a global strategist at Colliers Securities, believes in generating income through smart selection of funds with high-yield dividends.
- In his strategy, Grant often recommends funds like Nuveen Credit Strategies Income Fund (JQC) and Eagle Point Credit Company (ECC), which offer dividend yields exceeding 10%, with some over 50%.
- One of the main advantages of these funds is the monthly dividends deposited into clients' accounts, providing a regular cash flow for expenses or reinvestment.
- For seniors, retirees, and philanthropic organizations, these funds can offer a steady income stream that increases over time due to the dividends being based on the principal value.
- Grant's strategy relies on meticulous research and selection, ensuring that the funds not only pay consistent dividends but also earn more than what they distribute, a concept known as coverage.
- Despite the ongoing U.S. debt crisis emphasized by Jim Grant, editor at Grant's Interest Rate Observer, the monthly income generated from high-dividend yield funds can serve as a useful source of respite for many during economic turbulence.
