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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.

Mar 29, 2015

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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 yield

2. It’s highly diversified

3. It’s highly liquid

4. It’s flexible

5. 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%

• FrequencyQuarterly

• 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