Daily dividend news for investors in dividend stocks

14 Great High-Yield Stocks For A Rich Retirement

Published Wed, 06 Nov 2019 07:08:07 -0500 on Seeking Alpha

Many people nearing retirement have a problem. The market is at all-time highs, is historically overvalued, and bond yields are near all-time lows.

Over 10 years, 90% of bond returns are determined by starting yield, so future bond returns are likely to be very low, compared to their strong returns over the past 35 years.
Similarly, 90% of long-term stock forward returns are determined by starting valuation, according to a study by Bank of America's quantitative analysts, and corroborated by research from both JPMorgan and Princeton.

While valuation only explains 10% of 12-month returns, by year five it explains nearly half of it, and that rises to as much as 90% over 30 years.
Thanks to a decade-long bull market, stocks look historically expensive on all metrics except earnings premium relative to risk-free 10-year US Treasury yields.

Thus, it's not surprising that leading asset managers expect much weaker returns from both stocks and bonds in the coming years, which spells trouble for anyone using the standard 60/40 stock/bond portfolio.

With inflation running close to the Fed's 2% target, the consensus among asset managers is that the standard 60/40 portfolio will generate about 0.7% CAGR real returns, possibly for the next decade.
A reader recently asked me to point out my 10 favorite stocks for retirees to buy today. I'll do him, and you, one better by walking you through how to construct a reasonably balanced portfolio,... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
BRITISH AMERICAN TOBACCO 37.99   0.0 0.00 2.68 6.64
ABBVIE 70.83   26.0 2.72 4.28 6.28
SIMON PROPERTY GROUP 155.27   20.8 7.48 8.40 5.21
TELUS 36.69   16.5 2.22 1.69 4.61
MSC INDUSTRIAL DIRECT 71.99   13.6 5.30 3.00 4.18
CARNIVAL 49.62   11.7 4.25 2.00 4.03
UNUM GROUP 29.32   11.8 2.49 1.14 3.98
AVAGO TECHNOLOGIES 300.58   37.1 8.11 10.60 3.60
ALBEMARLE 69.28   13.5 5.12 1.47 2.15


Older articles featuring British American Tobacco (BTI):
Kiplinger 'Most Reliable Dividend Stocks On Earth' Persist Despite Covid-19 Losses By May Reckoning
Altria: 8.6% Dividend Yield With 35%+ Re-Rating Potential
Philip Morris: Secure 6.5% Dividend Yield And Strong IQOS Growth
Kiplinger's 'Most Reliable Dividend Stocks On Earth' For April
Financial Services And Consumer Cyclicals Sectors Declared The Most Dividend Increases March 2
Imperial Brands: Conference Highlights And Why 11.9% Yield Is Not Enough
The Retiree's Dividend Portfolio - Jane's January Update: 4 Reasons Why You Find It Difficult Saving Money
Kiplinger Hails 98 'The Most Reliable Dividend Stocks On Earth' For February
Philip Morris: Q4 Results Support 5.4% Dividend Yield And Low-Teens Return
Kiplinger's International Aristocrats: The 98 Most Reliable Dividend Stocks On Earth