Dividend-News

John's Portfolio - How To Wisely Use Preferred Stock To Boost Yield

Published Wed, 10 Jan 2018 13:49:34 -0500 on Seeking Alpha

Investment Thesis This series is focused on my client John’s Traditional and Roth IRA portfolios as we begin the same process of transforming his holdings from a mutual fund-based portfolio to one that consists of primarily dividend-paying stocks. Now that John has received his relatively large year-end mutual fund distributions, we can begin to reallocate his investments in a way that will better suit his retirement goals.
The primary goal for writing this article is to help make sense of the investing process and the transformation of a mutual fund-based portfolio to a dividend-paying portfolio that is focused on companies who have continued to strongly perform for decades. The goal is to follow a strategy that will generate strong dividend income and focus on capital preservation/minimal growth. John’s portfolio is unique because he recently retired on December 31 and is now going to be needing these funds to support his retirement.
John is getting closer to the age in which mandatory distributions are required by his Traditional IRA, and we want to make sure we are generating sufficient cash flows from these investments to avoid selling shares to meet these mandatory withdrawals (especially in the event of a downturn). By creating a game plan, we are setting up John’s tax-advantaged accounts for success going forward.
Current Portfolio Changes have already been made to John’s account, and the following graphs represent the status of John’s... Read more