Or, you could pay your car payment, take a trip to visit the grandkids or go on a long overdue vacation. It's possible thanks to the income generating power of options. And best of all, options are actually much safer than you've been led to believe - if you know what less than 1 in 4 investors know about using options to generate income. For a proven way to increase income in retirement, click here.
World's Greatest Business #1: Increasing Dividends 21% in a Year
I've found 12 stocks that have done something remarkable...
In arguably the most volatile period since the Great Depression, these companies have seemingly ignored every "hiccup" the market has been through.
In the past year (ended June 30), these stocks have gained an average of 29.4%... compared to just 5.4% for the S&P.
In the last five years the S&P is up just 1.1% (dividends included). While the overall market has languished, these 12 stocks have returned an average of 68.4% during the same period.
And in the past 10 years, they've returned an average of 181.2%... nearly triple the S&P's 68.1% return.
But all of this comes with an added benefit -- massive dividend increases.
For example, just days ago, one of these 12 stocks increased its quarterly dividend payment 75%. And another one that I will tell you about in a moment has raised its dividend payments 21% in just a year.
I call these 12 stocks the "World's Greatest Businesses." There are no guarantees, but my research shows this handful of stocks could be all that investors need to not only beat the market... but consistently grow their wealth -- and income -- year after year.
So how are these stocks able to beat the market... and also raise their dividend payments so steadily?
It's because they share 11 traits that I've identified as intrinsic to the world's most successful companies.
Now, I don't have the space to tell you all about these 11 characteristics in this essay (you can read about all 11 traits here). But I can tell you about one of the most important traits for income investors:
The world's greatest businesses return billions of dollars to investors in the form of dividends and buybacks.
Take the first company I've identified as one of the world's greatest businesses. It owns stakes in dozens of infrastructure monopolies throughout the world.
It owns electric grids in Chile... railroads and coal facilities in Australia... ports all over Europe... toll roads in South America... and timberland in the United States and Canada.
In total, about 80% of the partnership's revenues are under contracts or are regulated. Meanwhile, those practically guaranteed revenues are coming from one of the most compelling portfolios I've ever seen.
Individually, each of these holdings would be a great business to own. But this security lets you own dozens of these money-making monopolies.
And yet, I'd be willing to bet that less than one in 10 investors knows about this gem, Brookfield Infrastructure Partners (NYSE: BIP).
Like any great business, Brookfield generates enormous cash flow and returns a hefty portion of that cash to its investors.
BIP pays $0.375 per unit each quarter. That's a 21% increase over just the past year and gives the units a yield of 4.0%.
But I think that distribution is going to rise in the years ahead. Brookfield explicitly states its aim is to raise distributions 3-7% a year, while also aiming to return 60-70% of its net income to investors in the form of distributions.
How many other investments tell you that it's their explicit goal to continue increasing distributions... and at a rate that outpaces inflation?
And as you would expect with everything I've told you, Brookfield has topped the market for years. The company first went public in early 2008. As you can see, the stock has soundly beaten the market ever since.
Even Forbes has chimed in on this investment, saying a few months ago, "With rising estimates, strong growth projections, a fat 5% dividend yield and reasonable valuation, Brookfield Infrastructure offers a lot to like."
But Brookfield is just one of 12 great businesses I'm eager to tell you about...
Disclosure: Paul Tracy owns shares of BIP. StreetAuthority owns shares of BIP as part of the company's various real-money portfolios. In accordance with company policies, StreetAuthority always provides readers with at least 48 hours advance notice before buying or selling any securities in any "real money" model portfolio. Members of our staff are restricted from buying or selling any securities for two weeks after being featured in our advisories or on our website, as monitored by our compliance officer.
Tech stocks now account for 14.2% of the dividends paid out by members of the S&P 500, more than any other sector in the index.
-- Research Staff
10 Best Retirement Income Stocks Now
Some pay quarterly. Others pay monthly. All offer you a safer, more stable, and reliable source of high income even if the market goes down.
What's the secret to building a strong high-yield portfolio? While there is no magic bullet, I do have some rules I follow to create portfolios that pay nearly double-digit yields and see strong capital appreciation.
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DISCLAIMER: GlobalDividends.com and its parent company, StreetAuthority, LLC, are publishers of financial news and opinions and NOT securities brokers/dealers or investment advisors. You are responsible for your own investment decisions. All information contained in our newsletters or on our web site(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing our materials and web sites, you agree to our Terms and Conditions of Use, available here, including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our web site.