A Three-Fund Portfolio For 8% Dividends
July 21, 2016 at 06:45 AM EDT
Want a diversified portfolio of uncorrelated assets with a big 8% yield? It’s possible, even in today’s overpriced market. We can easily use just three funds to get a combined yield of 8%. That’s right—just three funds and we can turn $100,000 into a durable portfolio yielding over $660 in monthly income. These funds are in vastly different asset classes, and the dividends from one of them are even tax-free. So what’s in this big income portfolio? First, we have the Alerian MLP ETF (AMLP) , which is still down from a year ago but has capital gains upside potential thanks to changes in how the market understands weak oil prices (more on this in a bit). Then there’s the Nuveen AMT-Free Municipal Income Fund (NEA) ,... Read more
