Saturday, September 14, 2013

BUILDING MONTHLY CASH FLOW THROUGH HIGH YIELD FUNDS

As 2013 is winding down, I've been giving a lot of thought to my investment strategy for 2014.  While my main goal for 2014 is to reduce investment costs, I'm still quite focused on improving monthly cash flow and compounding.  To that end, I've been reviewing current holdings and the final issues I'll be purchasing for the remainder of 2013 to see where my capital might be put to best use.

I've decided to deploy the majority of my investment capital in 2014 in the following three funds.

1.  CRF  

CRF has a current dividend yield of 16.64% and has paid dividends for the past 25 years.  Some of their top twenty five holdings include investments in Johnson & Johnson, Google, Verizon, Coca Cola, Apple, Home Depot, American Express, Amgen and Nuveen.  

2.  CLM

CLM's current dividend yield is 17.02% and they have paid dividends for 11 years.  Some of their top twenty five holdings include JPMorgan Chase, GE, Microsoft, Chevron, Berkshire Hathaway, Visa and Wells Fargo.

3.  PFF

PFF currently carries a dividend yield of 5%, which is well below the other two funds mentioned, but still a respectable amount and I chose to include them in part to help reduce risk.  Some of PFF's top twenty five holdings include GM, Barclays Bank, CitiGroup, Deutsche Bank, Metlife, Goldman Sachs, Arcelormittal and ING Groep.  

Each of these funds provide monthly high yield payouts and invest in companies in which I own, or would like to own shares.  While this approach is right for me at the present time, I would advise doing your own research before investing in any of the above mentioned funds. 

1 comment:

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