Many fixed income products have racked up unusually strong returns. However, we expect a more normal year for fixed income in 2020, explains income expert Harry Domash, editor of Dividend Detective.
Thus we’re replacing our Preferred Stock fund with a high dividend payer tracking returns related to stocks making up the NASDAQ 100 Index.
We’re adding Global X NASDAQ 100 Covered Call (QYLD). It tracks an index measuring the performance of a covered call strategy utilizing stocks making up the NASDAQ 100 Index, a sector that we do expect to continue strong next year.
The fund, paying a 10.0% dividend yield, has returned 11% over the past 12-months and has averaged 11.2% annually over three years. We are adding the fund to our ETF Monthly Income portfolio.
Meanwhile, in our ETF Growth Opportunities portfolio, we are adding iShares Core Dividend Growth (DGRO) which tracks an index of stocks with strong dividend growth track records combined with ability to continue those growth rates.
DGRO has returned 15% over the past 12 months and also averaged 15% annual returns over three years. Dividend yield is only 2.2% but its latest payout is up 25% vs. year-ago.
In our Closed-End Fund Monthly Income portfolio we are We’re adding Cohen & Steers Infrastructure (UTF), which holds utility, pipeline, telecom, and other infrastructure stocks.
UTF, which pays a 7.0% yield, returned 33% over the past 12-months and averaged 20% annually over three years. Even better, its trading roughly even with its NAV.
