retire on diversified double-digit income bryan perry, editor changewave the 25% cash machine

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Retire on Diversified Double-Digit Income Bryan Perry, Editor ChangeWave The 25% Cash Machine

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Retire on Diversified Double-Digit Income Bryan Perry, Editor ChangeWave The 25% Cash Machine. Rising Inflation Rate . Katrina Spike. 15 year Trend was down until it was broken in 2004. Linear Regression Trend Line. Annual Inflation Rate. 4 Year Trend is up. - PowerPoint PPT Presentation

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Page 1: Retire on Diversified Double-Digit Income Bryan Perry, Editor  ChangeWave The 25% Cash Machine

Retire on DiversifiedDouble-Digit Income

Bryan Perry, Editor ChangeWave The 25% Cash Machine

Page 2: Retire on Diversified Double-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

Page 3: Retire on Diversified Double-Digit Income Bryan Perry, Editor  ChangeWave The 25% Cash Machine

Low Yield Environment

Page 4: Retire on Diversified Double-Digit Income Bryan Perry, Editor  ChangeWave The 25% Cash Machine

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%

Page 5: Retire on Diversified Double-Digit Income Bryan Perry, Editor  ChangeWave The 25% Cash Machine

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

Page 6: Retire on Diversified Double-Digit Income Bryan Perry, Editor  ChangeWave The 25% Cash Machine

30 Dead Dividend Stocks to Sell

Page 7: Retire on Diversified Double-Digit Income Bryan Perry, Editor  ChangeWave The 25% Cash Machine

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

Page 8: Retire on Diversified Double-Digit Income Bryan Perry, Editor  ChangeWave The 25% Cash Machine

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

Page 9: Retire on Diversified Double-Digit Income Bryan Perry, Editor  ChangeWave The 25% Cash Machine

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

Page 10: Retire on Diversified Double-Digit Income Bryan Perry, Editor  ChangeWave The 25% Cash Machine

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

Page 11: Retire on Diversified Double-Digit Income Bryan Perry, Editor  ChangeWave The 25% Cash Machine

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

Page 12: Retire on Diversified Double-Digit Income Bryan Perry, Editor  ChangeWave The 25% Cash Machine

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

Page 13: Retire on Diversified Double-Digit Income Bryan Perry, Editor  ChangeWave The 25% Cash Machine

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