Excellent post for Crimson IMO. I too feel like "ken" is forcing yield which ends up being a yield trap FAR too often. I only have to look back to MAR 2020. The small part of my port that yields much above 6% got smoked, but partially recovered. You really have to look at these carefully. I'm not interested if they haven't been around 20 years and proven they don't overleverage or pay back your capital with a "fake dividend", only to die in a severe market downturn. To pay you dividends with your own capital is not different than selling shares in an equity when it is down because times got tough.
Not suggesting you buy them, but look at DNP, RQI, JSP charts. These are funds with a long record and good management. As long as you buy them when the market is getting slammed they seem to recover capital, and keep on paying the high but not obscene dividend. If you want higher yields you are playing with companies that are holding a port of notes from companies on the brink of BK, smaller oil company bonds and other such highly speculative securities, or gong long options in sketchy stuff. This is why many of them go away. Its just a matter of when, not if, most of them bite the dust.
The bottom 10% of this model would be solid growth stocks with very little dividends. There is some chance they will mostly save an otherwise bad income port. Now isn't a perfect time to buy them of course, but you aren't doing this today.
Not suggesting you buy them, but look at DNP, RQI, JSP charts. These are funds with a long record and good management. As long as you buy them when the market is getting slammed they seem to recover capital, and keep on paying the high but not obscene dividend. If you want higher yields you are playing with companies that are holding a port of notes from companies on the brink of BK, smaller oil company bonds and other such highly speculative securities, or gong long options in sketchy stuff. This is why many of them go away. Its just a matter of when, not if, most of them bite the dust.
The bottom 10% of this model would be solid growth stocks with very little dividends. There is some chance they will mostly save an otherwise bad income port. Now isn't a perfect time to buy them of course, but you aren't doing this today.