02-20-2020, 06:05 AM
(This post was last modified: 02-20-2020, 10:54 PM by crimsonghost747.
Edit Reason: wrote disagree instead of agree... silly me...
)
I feel your pain with the current system, and I fully agree with it being a race to the bottom with currencies and interest rates. It's certainly not going to end well but yeah, it's likely that the central banks will just keep pushing free money into the market at increasing speeds for years to come. I don't know what the end game is, there probably isn't one, since it just feels to me like trying to revive a broken system by breaking it even more.
Anyway, alternatives for income investors? Well the large majority of bonds are definitely out of the window. There are some that are interesting, mainly 3rd world ones but those can be very difficult to get, and then you also need to hedge for currency. I'm still researching this as I do need an alternative that yields SOMETHING for my cash. But I wouldn't consider an utility with limited growth and a P/E of 30 and a yield of 2% to be much of a choice either if we are talking about income. 2% just isn't that great, especially when it grows relatively slowly.
I'd say look into REITs, foreign utilities, maybe some big oil names... I'm still seeing some 5%+ yielding companies there with pretty solid fundamentals.
Another alternative might just be to say byebye to current yield and focus more on those with 1-2% yields and 10-15% dividend growth rates. It'll be a long road but 5-10 years down the road that could also reward you pretty nicely on the income side.
Anyway, alternatives for income investors? Well the large majority of bonds are definitely out of the window. There are some that are interesting, mainly 3rd world ones but those can be very difficult to get, and then you also need to hedge for currency. I'm still researching this as I do need an alternative that yields SOMETHING for my cash. But I wouldn't consider an utility with limited growth and a P/E of 30 and a yield of 2% to be much of a choice either if we are talking about income. 2% just isn't that great, especially when it grows relatively slowly.
I'd say look into REITs, foreign utilities, maybe some big oil names... I'm still seeing some 5%+ yielding companies there with pretty solid fundamentals.
Another alternative might just be to say byebye to current yield and focus more on those with 1-2% yields and 10-15% dividend growth rates. It'll be a long road but 5-10 years down the road that could also reward you pretty nicely on the income side.