OUT OF THE BOX: INCOME
Mark J. Grant
"Chief Global Strategist," Colliers Securities/Author of "Out of the Box" and creator of "Grant's Income Strategy" which provides outsized yields with monthly cash flows.
The Wall Street Journal says, “Dividend Stocks are primed for a comeback in 2025.” They further state, “With tech stocks pricey and bonds losing appeal, some investors turn to dividend payers,” which I personally think is the best strategy now. I think the High-Tech course is running out of time and space as the valuations for many of these stocks no longer makes any sense. Then, with the Fed about to cut rates again, in my opinion, new purchases of bonds are also losing their appeal.
This is why I am using closed-end funds and a few REITs to provide income and the ones that I am currently using yield over 10% and some as much as almost 20%, and they all pay monthly, so you get to decide whether to take the money each month or reinvest it. You can utilize this strategy for your regular account or your ROTH or IRA accounts. It is a monthly income strategy that I am using.
In terms of timing, please note that this week, the S&P 500’s dividend yield, which measures dividend payouts relative to stock price, hit a 20-year low when it dropped below 1.19%. This is why I do not think that individual stocks are the answer and also remember that the funds I use pay from varying sources of income and some are even tax-exempt funds that are paying far more than most individual Municipal Bonds.
I predict that overall fund dividends will increase by 10% in 2025. That is because investors want the cash and because our new President is likely to reduce governmental spending and the regulations for many companies. In other words, I believe a “bonus” is heading our way. I also think that America’s return to “energy independence” and our possible resumption of being an oil and natural gas exporter will be another positive for our country and for our markets.
Bear in mind that the funds and REIT’s that I use receive income from energy, gold, CLO’s, loans, Covered Calls, Munis et al and that diversification is always a positive, in my view. I also think that if our new President’s strategies are implemented that it will be a major plus for our economy and for the markets in general. The other major factor, looming over our heads, is the Fed and what they will do with rates, and I believe a stronger economy will be a positive for them to cut rates and not just in December.
I have stated before, and I will restate again, that our country’s finances under our forthcoming administration will mark the end of one era and the beginning of a new and much more positive era for the United States. We are just days away from the crossroads now and I believe America’s future is much brighter than where we have been for the past four years.
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“What we call the beginning is often the end. And to make an end is to make a beginning. The end is where we start from.”
-T.S. Elliot
Mark J. Grant
Chief Global Strategist
Colliers Securities
U.S. 954-999-0933