Tag Archives: income
How is the Current Environment Impacting Your Retirement?
Explore how our new quarterly dashboard on S&P STRIDE can help investors better understand and plan for retirement with S&P DJI’s Hamish Preston. Get the latest dashboard: https://spdji.com/documents/commentary/dashboard-stride-2020-03.pdf.
- Other Tags
Ways To Avoid Getting Pink-Slipped In Retirement
Maybe you can’t technically get fired after retiring, but running out of income in retirement is a real risk many people fear. According to TIAA, 49% of Americans say their No. 1 goal for a retirement plan is to provide guaranteed monthly income in retirement, and 68% of Americans would first choose a retirement paycheck that…
- Categories Equities, Fixed Income, Strategy
- Other Tags
The Importance of Sector Diversification in a Yield-Focused Strategy – Part II
In our previous blog (The Importance of Sector Diversification in a Yield-Focused Strategy – Part I), we highlighted that sector biases in an unconstrained yield strategy could detract from portfolio returns. In this blog, we will show that addressing the sector concentration issue can improve risk-adjusted returns. We constructed three sector-diversified portfolios—the dividend yield portfolio,…
- Other Tags
The Importance of Sector Diversification in a Yield-Focused Strategy – Part I
Diversification is undoubtedly a central tenet of investing. Many studies[1] [2] [3] have shown that over the long-term investment horizon, maintaining a diversified portfolio can potentially reduce overall risk without compromising expected returns. As such, most market participants strive to form diversified portfolios in order to achieve their desired investment outcomes. There are many ways…
- Other Tags
Communicating Income: Lessons From Behavioral Finance
In my recent book, The Behavioral Economics Approach to Winning New Clients (and Keeping the Ones You Have!), I offer a dozen recommendations to financial advisors charged with stewarding their clients’ assets to ultimately improve the relationship between client and advisor. Several lessons are devoted to communication, specifically ways to employ trust, loss aversion and…
- Categories Uncategorized
- Other Tags
- Categories
- Uncategorized
- Other Tags
Using Free Cash Flow Yield to Find Sustainable Dividends
When a company makes profit, it may choose to reinvest all of its earnings (common for growing stage companies) or pay back some to its shareholders in the form of dividends (for more mature companies). For market participants who seek a steady income stream and potential dividend reinvestment opportunities, dividend strategies can be one potential…
Don’t Confuse Income With Yield
Yield conventions differ for stocks and bonds, but the various calculation methods for both asset classes have an important characteristic in common—they are alternative expressions of price. Measures of yield specifically relate current price to how much dividend or interest income holders of a particular security are likely to get. Thinking of yield as income…
- Categories Uncategorized
- Other Tags
- Categories
- Uncategorized
- Other Tags
The Price of Retirement
In my last post, I discussed variability in cost and affordability of retirement income. I used some data from S&P STRIDE, our new benchmark that provides a cradle-to-grave yardstick for wealth accumulation and income generation. This week, I will look a little closer at how we measure retirement income, as well as its present value…
- Categories Equities
- Other Tags
- Categories
- Equities
- Other Tags
The Hunt for Consistent Income
The hunt for stable income is an increasingly challenging task. Bond yields across major fixed income markets are at historically low levels, with some of the central banks in developed countries even going as far as adopting a negative rates policy. Together with an aging population that is living longer and relies predominantly on fixed…
- Categories Equities, S&P 500 & DJIA
- Other Tags
- Categories
- Equities, S&P 500 & DJIA
- Other Tags
The Power of Dividends: Preferred Stock
Similar to fixed income securities, the U.S. Preferred Stock market has started 2014 with positive performance. The S&P U.S. Preferred Stock Index (Total Return) ended January 2014 up 2.68% . A good start given the S&P 500 Index (Total Return) was down 3.46%. As a fixed income comparison the S&P/BGCantor U.S. Treasury Bond 7-10 Year…
- Categories Equities, Fixed Income
- Other Tags
- Categories
- Equities, Fixed Income
- Other Tags