The aim of most investors is to secure financial freedom. Financial freedom is the state of having the assets you need to generate recurring income for yourself that exceeds your expenses.
The pursuit of financial freedom is lifelong by nature. Once achieved, your assets must be managed to ensure they are still sufficient to generate the level of recurring income you need.
There are two sides to the financial freedom equation; the investing side, and the expense side. Reducing personal expenses is beyond the scope of our coverage at Sure Dividend, but it is a powerful way to achieve sustainable financial freedom faster.
Income investing matches what investors need for financial freedom – recurring income – with assets that provide recurring income. Income investing looks at the purpose behind investing and uses that to find suitable securities.
Investing In Publicly Traded Securities For Income
Investing in publicly traded income securities have several distinct advantages:
- Stocks have generated the strongest returns of any liquid major asset class over the long run – and it isn’t close.
- The cost of buying and selling individual securities is incredibly cheap now – and holding stocks after purchasing them is free.
- The stock market’s combination of transparency (readily available financials) and liquidity reduce uncertainty relative to more opaque and illiquid investments.
Higher yielding securities allow investors to reach financial freedom with a smaller asset base. If an investor needs $80,000 per year to live on, a portfolio of $1.23 million with a 6.5% yield would achieve this. A portfolio invested at 4% would require a $2.00 million.
The securities in The Sure Retirement Newsletter all have dividend or distribution yields of 4% or higher – some significantly higher.
High Yield & Income Safety
With that said, investing in high-yield securities indiscriminately is a fool’s errand. High-yield securities tend to have elevated chances of a dividend reduction. This is usually because they pay out a greater portion of their cash flows as dividends or distributions. If cash flows decline, even temporarily, the investor’s income stream could be at jeopardy.
The Dividend Risk score is one of the primary factors we consider in our rankings and for security selection in The Sure Retirement Newsletter. Securities with lower payout ratios, a better ability to withstand recessions, and longer dividend histories, will have better Dividend Risk scores.
The combination of a lower chance of a dividend or distribution reduction and a better chance of dividend or distribution growth over time makes sustainable financial freedom much more likely.
The Sure Retirement Newsletter
The Sure Retirement Newsletter uses data from The Sure Analysis Research Database to find and rank quality dividend growth stocks with 4%+ yields – so you invest in high yield dividend growth stocks trading at fair or better prices.
Specifically, The Sure Retirement Newsletter recommends securities that generally have the following characteristics:
- 4%+ yields only (and often much higher)
- Securities likely to pay steady or rising dividends into the future
- Securities trading at or below (often well below) fair value
- Securities with strong expected total return potential
The Sure Retirement Newsletter includes the following:
- The Top 10 best 4%+ yielding quality income securities each month
- Actionable buy and sell recommendations
- Portfolio building guide
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