retire on diversified double-digit income bryan perry, editor changewave the 25% cash machine
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Retire on DiversifiedDouble-Digit Income
Bryan Perry, Editor ChangeWave The 25% Cash Machine
Rising Inflation Rate
15 year Trend was down until it was broken in 2004
Katrina Spike
12 Month Moving Average 4 Year Trend is up.Beginning a new 15 year Trend?
Annual Inflation Rate
Linear Regression Trend Line
Low Yield Environment
Typical Fixed Low-Yield Investments
• Savings Accounts . . . . . . . . . . . . . . . . . . 4%• Money Markets . . . . . . . . . . . . . . . . . . . . 4.5%• Certificates of Deposit . . . . . . . . . . . . . . . 5.25%• U.S. Treasury Securities . . . . . . . . . . . . . 5.10%• Corporate Bonds . . . . . . . . . . . . . . . . . . . 5.80%• Fortune 500 Dividends . . . . . . . . . . . . . . . 3%
Poster-Child for Dead Dividend Stock
• Currently paying 4.1% while the stock tanks• Saddled with cars inferior to exports• Sales artificially boosted by heavy incentives• Gigantic pension obligations
30 Dead Dividend Stocks to Sell
A “Real” High Yield Investment
• Pays dividends yields of 10% to 20% annual• Highly liquid vehicles that can be bought or
sold through discount or online brokers• Less volatility than the average large cap stock
portfolio • Drives dividends from cash-flow, not debt
payments• Pays dividends monthly and/or quarterly
High Yield Investment VehiclesCanadian Royalty Trusts Closed End Funds Convertible Securities
Convertible Preferred Stocks Corporate Bonds
Equity Linked Securities (ELKS)Master Limited Partnerships (MLPs)
Preferred StocksReal Estate Investment Trusts (REITs)
Business Development CompaniesOil/Shipping Tanker Stocks
Grantor TrustsEmerging Market Debt
Option Income Funds
The 5 Keys to the 25% Cash Machine High Income
Investment Strategy
1. It pays a double-digit yield2. It’s highly diversified3. It’s highly liquid4. It’s flexible5. It offers upside appreciation with less
volatility than common stocks
Eagle Bulk Shipping (EGLE)
Vital Statistics• Tanker/Shipping• Current Price $19.39• Target Price $25• Dividend Yield 12.27%• Payout Quarterly• Pay Date June 6 • Market Cap $696 M
S&P 500 Covered Call (BEP)
Vital Statistics• Option Income• Current Price $20.60• Target Price $23• Dividend Yield 10.48%• Payout Semi- Annual• Pay Date June 29• Market Cap $358 M
Apollo Investment (AINV)
Vital Statistics• Business Development
Company (BDC)• Current Price $18• Target Price: $22• Dividend Yield 9.75%• Frequency Quarterly• Pay Date May 27• Market Cap $1.4 B
Building Your Own 25% Cash Machine Portfolio
• Desire to build income portfolio• Look for securities paying yields of
10% to 12%• Invest in asset classes with strong
fundamentals in pockets of economic strength• Rotate in and out of sectors of strength• Target capital appreciation of 10% to 15%
per year
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